Krugerrand coins are named after Stephanus Johannes Paul Kruger who was better known as only Paul Kruger or Oom Paul (Uncle Paul). He was born on 10 October 1825 in Cradock, then part of the Cape Colony. Paul Kruger died in exile in Clarens, Switzerland on 14 July 1904.
Paul Kruger rose among his people as a leader who would champion the cause of the boers during the South African Boer war(1899-1902). The boer war was a war between the then mostly Dutch settlers in Transvaal and the British. Kruger became president of the TransvaalRepublic in 1880.
The legacies of Kruger include among others the naming of one of the world's largest game reserves after him namely the Kruger National Park. Also the world famous Krugerrand coins are named after Oom Paul. One side depicts a national animal of South Africa, which is the springbok antelope. The reverse side is a left side view of Paul Kruger.
Krugerrand coins came into being in 1967. It was the first bullion gold coin in the world and was designed to be the most cost effective way for the ordinary person to own gold. You could in 1967 purchase a full 1 ounce Krugerrand coin for R27.00. To date this is still the most cost effective way for the ordinary South African to own gold. The Krugerrand coin became the most popular gold coin in the world and today boasts a position among the top 300 brands in the world. Any self-respecting gold coin collector anywhere in the world today will have in their possession Krugerrand coins.
In the United States of America alone there is currently 55 million of these coins in circulation. Markets across the globe sell annually more Krugerrand coins than all the competing coins of the Chinese, Americans, Canadians and Australians combined.
The Krugerrand coins are synonymous with South Africa and its wealth of Gold.
The gold coins are minted in 1 ounce, ? ounce, ? ounce and one tenth ounce of 22 karat (91.6% fineness). The Krugerrand coins are alloyed with other metals for hardness and durability.
Two parallel options in the Krugerrand coins exist which is the bullion and proof mint series.
What is the difference between Bullion and a Proof Krugerrand coin? This question is often asked. Firstly and probably most importantly their gold value is to the cent exactly the same. If you are going to sell your gold and you have one bullion and one proof coin you will be paid the same amount for each.
The essential difference is cosmetic. The proof coin is struck twice to better define the image. The image on the proof coin is also 'frosted' so that it appears brighter.
The alloys may also be different in the bullion and proof coins. This will account for the color and slight size differences between the coins.