- The Krugerrand and Britannia: Are They Similar?
- What is the Value of the Krugerrand?
- Buying and Selling Krugerrand Coins
- The Global Krugerrand Market
The Krugerrand and Britannia: Are They Similar?
The Krugerrand shares several similarities with Britannia, The Royal Mint’s flagship bullion coin. First introduced in 1987, our Britannia bullion coin contains one troy ounce of 24 carat gold, meaning it has a purity of 99.99%, with a diameter of 32.69mm and a thickness of 2.79mm. Our 2023 Britannia bullion coin is the world’s first bullion coin to feature the official coinage portrait of His Majesty King Charles III on the obverse, whilst the reverse features a design depicting Britannia, the female personification of the United Kingdom. In addition to the one ounce editions of the coins, the Krugerrand and Britannia are also available in fractional denominations, including half-ounce, quarter-ounce and tenth-ounce editions.
When it comes to historical significance, both coins have their own unique stories to tell. The Krugerrand was created to promote South Africa and provide a means for investors to buy and hold gold, whilst Britannia was created when the Chancellor of the Exchequer Nigel Lawson gave consent for a new £100 gold coin in 1987.
What is the Value of the Krugerrand?
The value of a Krugerrand is closely tied to its weight and the current market price of gold. Comprising one troy ounce of 22 carat gold, it is 91.67% pure and typically sold at a premium above the spot price of gold due to production costs. Condition and historical significance can also affect its value, with uncirculated and pre-1980 coins typically more valuable; the option of buying fractional Krugerrands also offers investment flexibility.
Legal tender in South Africa, the Krugerrand was one of the first gold bullion coins generally available to investors, but the apartheid system resulted in many countries banning the coin during the twentieth century. However, since 1994, it has once again become a popular choice within investors worldwide.
Buying and Selling Krugerrand Coins
Widely traded around the world, Krugerrands are available to purchase through bullion dealers, banks, financial institutions and online marketplaces. It is important to ensure that when purchasing the coins they are authentic and the dealer is reputable, as counterfeit coins can be difficult to spot.
Influenced by factors such as supply and demand and prevailing market conditions, investors can expect to receive a price close to the current market price of gold when selling a Krugerrand or Britannia coin. It is advisable to sell these coins to a reputable dealer or seller who will offer a fair price based on the coin’s condition and current market value.
The Global Krugerrand Market
As legal tender in South Africa, the Krugerrand is exempt from VAT and Capital Gains Tax (CGT). Investors value the Krugerrand for its reputation as a reliable and affordable way to invest in gold, whilst its gold content and durable design make it a popular choice for long-term wealth preservation.
Similarly, Britannia bullion coins are also exempt from CGT. As a 24 carat gold coin, Britannia commands a higher premium due to its higher purity level. The price of both the Krugerrand and Britannia is a premium above the spot price of gold, making them a popular choice for investors looking to diversify their portfolios, and they can both be used as a hedge against inflation and financial instability.
