How To Buy Kruger Rands In South Africa

The Krugerrand is a South African gold coin. Krugerrands were first minted in 1967 to help market South African gold. The coins have legal tender status in South Africa, but are not intended to be used as currency. New Krugerrands are issued by the South African Reserve Bank (SARB) and are available from certain banks and specialist outlets. The JSE offers trading in Krugerrands through a well regulated secondary market and are traded in the same way as any listed Equity Market instrument, with prices being quoted on the various types (weights) of coin.

Who is this for?

Krugerrands appeal to professional and private investors who wish to make a direct investment in gold bullion, hedge their portfolios against the US dollar or to further diversify their portfolio.

What do you have to do to buy a Krugerrand?

Below are some guidelines to follow when buying a Krugerrand. 1

First things first – do your homework.

You can’t buy these coins from any person that comes along. Do a background check on the company you are dealing with. Have they been approved by the South African Association of Numismatic Dealers (SAAND) and the SA Mint? Both these organisations have established the standards required for high-quality coin production. Best let go of the vendor company you may be dealing with if it is not recognised by both key organisations. In this way, you’ll protect your business’s integrity and the standard of the bought coin. 1

How do you estimate the price of a Kruger rand?

Seeing the coin’s price is directly linked to the current gold price, stated in US Dollars, convert the latter into the equivalent ZAR, using the relevant exchange rate. Referred to by many as the “Spot” price of one ounce of gold, add to it the vendor’s commission, which usually ranges from 6 to 12%. You have now estimated the cost of a Krugerrand in ZAR. 1

Contact the vendor.

Perhaps it is more meaningful to visit the local coin store to find out about buying Krugerrands. You can buy the Krugerrand in various fractions of an ounce, such as a tenth, a quarter, a half and a full ounce. long-term is done to cater for the affordability of different buyers. Nevertheless, most coin shops do not have many Krugerrands in stock, which means they will have to order them.1

How can you pay?

Either via EFT or cash is the preferred method of payment. Many vendors do not like card-related transactions because of the extra commission charged by banks. The vendor may charge you a handling fee for a cash transaction, so rather pay via EFT. A mere phone call is acceptable to some vendors, followed by an EFT and proof of payment. 1

You can buy, using a bank’s online platform.

You can buy and store your gold coins using a bank’s online platform.2

Collect your krugerrands from the vendor.

You need to go to the coin shop, sign some documents and prove your identity before you can take possession of your Krugerrands. The vendor will give you a certificate of authentication, which you will need to keep in a safe place. The long-term declares specific details about the coin as well as its value. 1

How do you safeguard your coins?

You have to safeguard your coins because, if they get lost or are stolen, their value cannot be re-imbursed. Some vendors offer to keep your coins in a safe place, either for free or for some charge. However, be careful which vendor you select for storing your coins. Thieves have been known to break into safety deposit boxes. Be highly protective about any details or information concerning the coins.