There are many interesting facts about stamps and currencies all over the world, and some are better known than others. Not many people have heard about the Krugerrands, but these units hold an extremely high trade value. In this article, we are going to tell you why they are worth more than gold, and we will share with you some other interesting facts that you may want to know about the Krugerrands.
The first thing that you need to know about these units is that they were first forged by the end of the 1960s in South Africa and their main purpose was to help the gold trade in the country. They were produced by the South African Mint and the Rand Refinery.
The name comes from a blend of two many important things in the area, the former president, Paul Kruger, and the currency that was, and still is used in South Africa – the rand. So, the combination of the two – Kruger and rand, turned int to the Krugerrand.
On the stamp, we can notice the national animal of the country – the pronking springbok. The stamp is produced from gold, and its mass is about 34 grams or 1 troy oz. Ever since the mining and the production process, up to the begging of the 80s, or about a decade after it was first created, this unit accounted for more than 90 percent of the gold stamp trade all over the world.
It was estimated that from the beginning of the forging process up to the 80s, and even early 90s, more than 50 million ounces of gold bits were promoted and sold in the trade, and in the early 80s, it was estimated that more than 600 million dollars were marketed in and outside the country. The records have shown that in the United States alone, more than 20 million golden stamps were imported between the mid of the 1970s and the mid of the 1980s. In less than a decade, millions of Krugerrands were exported all over the world, and this is how this coin became a favorable thing to have, and its merit grew by the day.
Because of the interest the world had in the Krugerrands, more and more countries decided to invest in their own gold bits, hoping that the fame that the South African stamp got would translate into their currencies as well. Because of this, we were able to witness the American Gold Eagle that surfaced in the mid of the 80s, the Australian Nugget that showed up on the trade by the end of the 80s, and even the Canadian Gold Maple Leaf that was produced at the end of the 70s. There were a number of other countries that invested in their own version of the Krugerrands, hoping that they could boost the economy of the country, as long as they showed up something of merit as the South African unit.
You can check https://www.rarecoin.de/kruegerrand-krugerrand-silbermuenzen-goldmuenzen-platinmuenzen/, for more information on the history of the stamp as well as its value today.
As time went by, in the late 80s and the beginning of the 90s, investors stopped being interested in it because of the front side of it. On the front side, we can see the former president, Paul Kruger, and this is one of the main reasons why owning this coin was seen only as a support of the government that was supporting legislation that segregated non-white citizens of the country. So, this became a huge reason for debate, and many western countries decided to stop supporting a unit that could actually promote segregationist policies.
Why Are They Worth More Than Gold?
There are two main types of Krugerrands, the proof ones, and the non-proof bits. The former are considered as premium and they have 220 edge separation, whereas the other ones have only 160. This makes them different from one another, and it makes the premium stamp much more interesting for investors.
Another interesting fact is that for the 50th anniversary of the stamp appearing on the trade place, the Premium Uncirculated versions of the unit appeared. They were not made of gold only, but also platinum and silver. All of these bits were limited versions, and they have a 50 privy seal mark that is found on the backside of the unit.
There are many reasons why these units are so valuable, and the main one is that they are made of gold. No matter what happens to the trade, and no matter how much time has passed, this material will always hold merit. Another important thing is that the gold’s price can only go up, and as we have witnessed in the past decades, it is more and more valuable by the day. So, this is a great way to ensure that the economy of a country will not crash as long as they have physical things made of the bullions.
An additional reason about why it is worth so much is because it holds historical merit as well, and unlike a standard ounce of gold when you get this unit, you will also be investing in the story that comes with it.
Today’s value of this stamp is about 1940, whereas the price of one ounce of pure gold is about 1910. Even though the difference is not a lot, there is still some slight difference per one ounce of both of these units, and we can see that the Krugerrands are more valuable.
Many people believed that after the 80s, these units would completely crash and that they would use their merit, but time has shown that things are not that black and white. With the different types of Krugerrands that were promoted in the trade, both in the mid of the 80s and the anniversary unit that was placed in 2017, we can see that the South African government is ensuring that these coins stay afloat.
Experts suggest that even though the Krugerrands may never be twice the price of gold, and even though their merit may never go much higher than this, we can expect them to stay popular and a good choice of investment. The fact that with these units we can see a whole side of history along with valuable materials, shows that these bits will never lose their value.