WHY YOU SHOULD INVEST IN THE KRUGERRAND
The easiest way for investors to profit in gold business is through ownership of the Krugerrand. Being the most actively and widely traded bullion coin, the Krugerrand is valued by its gold content rather than its face value. The name of this gold coin is coined from the name Paul Kruger, a famous president in the history of the country, and the country’s currency; the Rand.
While the gold coin market is flooded with several types of gold coins, South Africa’s one-ounce troy Krugerrand is the only bullion coin minted by the government. It is plated using 2.826 grams of copper to ensure higher durability and to make them scratch-resistant. This colour also gives it a unique golden hue. In terms of quality, it is a 22Karat coin with a total weight of 1.0909 ounces, approximately 33.930 grams.
Investment in the Krugerrand is one way of providing insurance against severe stocks and share down-turns, economic uncertainties, national crises and currency devaluations. Being a high quality but low priced bullion coin, it is ardently traded across the universe and has maintained itself as the most booming of all modern gold bullions in the gold trade.
For traders intending to purchase tradable amounts of gold without massive investment in gold bars, the Krugerrand is the only solution. The South African Krugerrand makes ownership of gold simple by making available a 1 troy-ounce gold unit that is easy to sell and buy throughout the world. Instead of trade in bars of gold with odd weights, the selling and buying of private gold by private owners has now been made easier in this mass-produced bullion coin that has a lot of convenience.
Ever since it was introduced in the United States, South Africa’s Krugerrand has become the foundation stone for all modern gold bullion coins today. If compared to the 50 Peso or 100 Coronas, the Krugerrand contains just one gold-ounce, making it a preferred coin in the US. In addition, since its gold content is stamped on it in English language, it stands out as the most trusted in comparison to the 50 Peso and The 100 Corona, which don’t bear gold content on them.
An average investor should find it more considerable to deal in Krugerrands, Maple Leafs and Gold Eagles; since they are all easier to sell and buy. In addition, their buying and selling prices have narrow spreads. Krugerrands should be purchased by investors planning to invest in physical gold because of its linkage to the gold price settled on in US Dollars. The other advantage is that the Krugerrand is sold at small premium rates above the prices of gold.
Being the only means of legal possession of South African gold bullion, the Krugerrand presents a distinctive way of keeping one’s own investment in gold. Krugerrands can be sold to or bought from many companies dealing in gold worldwide. Because of its popularity, selling and buying it is so simple a task.
Finally; its durability, guaranteed gold content, its lower investment costs, its instant liquidity and popular design makes it the choicest bullion coin to invest in.
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