Krugerrands

The Krugerrand was first minted in 1967 in an effort to boost the South African gold market. By the beginning of the 1980’s the Krugerrand was the most popular bullion coin in the world and it continues to be today. During the isolation years Krugerrands were banned in the many western countries that opposed Apartheid, however, since democracy the Krugerrand has become a popular coin amongst collectors and a worthwhile asset amongst gold investors.

There are two types of Krugerrands, namely bullion coins and proofs, and there is a notable difference between the two. How does one distinguish between these two coins? Proofs are highly collectable. They are scarcer, polished to an immaculate shine and are highly sought after by collectors. However, proof coins are not worth the time to investors. Why? While proof coins are highly sought after, in order to get a worthwhile return on your initial investment a seller would have to search for the appropriate collector. This may take a long time, meaning that the investment would be tied up until a valuable deal can be struck, and although proofs track the gold price it may have dropped by the time a collector is found. This would result in a loss of investment, making it impractical from the savvy investors point of view. If one is considering investing in gold, then there can only be one choice out of the two Krugerrand coins: gold bullion.

If you are putting together a portfolio it is a fantastic idea to include some gold bullion Krugerrand investments. While it is not advisable to base your entire portfolio on gold investments, because gold does not yield dividends like the stock market, gold provides insurance as a secure investment should there be a stock market crash or a national crisis.