Best answer:

Answer by edgetrader
zrs:

Not sealed for what purpose? The coins you
mentioned circulate through dealers and between
individuals and are accepted as such.

When gold is assayed, its fineness, or purity is
being measured, and stamped as authentic by
the company doing the assaying so as to let
anyone know the legitimacy of the gold content,
by weight.

Add your own answer in the comments!

I covered the Krugerrand's basic history and information in my previous article entitled, Krugerrand Gold Coins - The First Contemporary Gold Bullion Coins. I also covered some interesting facts and trivia about the coin in a follow-up article, entitled, Krugerrand Gold Coins - 10 Fun Facts.

In this article, I'd like to talk about the advantages of buying Gold Krugerrand coins versus other modern gold bullion coins.

1. High Durability

The 22k Krugerrand contains a gold alloy combination of 91.67% gold and 8.33% copper. The inclusion of copper makes them more durable than other 24k modern gold bullion coins. The coin is highly resistant to scratches, dents, and nicks!

2. Low Price

The Krugerrand generally has the lowest premium over the spot price of gold. At the time this article was written, the coin was trading at .00 over spot compared with .00 for the Canadian gold maple leaf, .00 over spot for the American Gold Eagle, and .00 over spot for the gold Buffalo!

3. Instant Liquidity

Because the Krugerrand gold coin isso well-known, it is super easy to buy and sell them both locally and internationally.

4. Easy To Store

Like most gold bullion coins, the compact size of the Krugerrand makes it convenient to store and transport. Most Krugerrands are packed in three inch plastic tubes that fit nicely inside home safes or safety deposit boxes in banks.

5. Better Than Bars

While it's true that the premium on gold bars is generally lower than that of gold coins, unlike Krugerrand gold coins, it's a pain to store and transport them. Plus, most gold bars must be assayed when sold, an additional cost that you don't have to worry about when selling the Krugerrand!

Whether you are just starting to purchase gold bullion coins or are looking to add to your collection, I think you'll agree that the gold Krugerrand is not only a great deal but a high-quality bullion coin that should be the cornerstone of any investor's portfolio. In my next article, I'm going to take a look at how to buy Krugerrand gold coins without getting ripped off!

When you are ready to buy krugerrands, where do you turn? Modern investors have more choices than at any time in history, and becoming an informed gold coin buyer can not only be an enjoyable hobby, but also save you some money as well. Regardless of if you buy krugerrands online or from your friendly neighborhood dealer, you need to know how to determine krugerrand value on your own- don't just take a seller's word. Bullion gold coins are struck to be used as an investment medium in gold. The majority of the coin's value comes from its gold content, or purity. Krugerrands are 22 carats, because they are alloyed with copper to make them more durable. If a kruger was 24 carats, or pure gold, it could be easily dented, and even scratched with something as soft as your fingernail. By adding copper (1/12 of volume), the Rand Refinery creates a more durable coin with the kruger's distinctive dark golden hue. The coin is actually heavier than the denomination marked on it- for example a 1 oz gold krugerrand has one full ounce of gold and is heavier still by the added copper content. This ensures that buyers get what they want- a convenient, standardized method of buying gold. Your first task in determining how much a krugerrand is worth is to determine that value of that gold. If you do a Google search on "Gold Spot Price" you will turn up a number of real time quotes for gold. Once you know the gold price, you can go on to determine what the premium for the coin is, and if it's a good investment.

Your next step is to determine what the current price for the size of krugerrand you are shopping for is. (A quick side note- premiums on the fractal krugerrands are higher. So if you are planning on buying five 1/10 oz gold krugerrands, you might want to consider just buying a 1/2 oz krugerrand instead, you can save a little money). You can let your fingers do the walking- call a few local coin dealers and see what prices they are selling krugers for. Another convenient way to get an idea of what the krugerrand price is to go to eBay. You'll need to have an eBay account to do this- for some strange reason they won't let you see completed auctions without it. If you don't have an account just sign up- they're free. Once you have your account and you have logged in, type the size of kruger you are looking for into the search box. On the left hand side, toward the middle of the page, you'll see search options. Be sure to click the tic box next to completed listing, and then search. Completed auctions will show the listing price bolded in green. This is price that buyers are paying on the open market, and it's a good indicator of the current value of a standard, circulated krugerrand. Uncirculated or proof krugerrands will bring an additional premium due to their special nature (For example a proof is usually hand loaded on the presses, and double struck on specially polished blanks).

Okay, now you know your krugerrand value- let's talk about advantages of dealers versus buying online. When you purchase from a dealer, you are getting their expertise in addition to coin itself. You are less likely to get a fake krugerrand from a dealer, because they are in the business of dealing gold and it is in their own interest to protect their reputation. Also, because they are experienced in dealing with gold coins (especially if you have a dealer who specializes in krugerrands), they are more likely to able to spot a fake than an amateur investor. A dealer is also a good bet if you want to buy a krugerrand for its numismatic value- or collectability. So if you want a proof krugerrand, which is more valuable because of the special preparation and limited mintage numbers, a knowledgeable dealer is a good choice for getting good information and a fair price. There are some disadvantages. You may not have a dealer in your town- so there could be travel. Some dealers prefer to buy and sell in bulk, so they may not want to sell you a single coin. Finally some dealers do charge a higher price than what you could get online. Speaking of buying krugerrands online, there are a few advantages to take note of. When you buy online, you have access to hundreds of coins- more than any dealer could reasonably stock. It's also very convenient- you can buy a coin from a collector in New York while sitting at your kitchen table in Texas. In some cases if you're quick and bid at the right time, you can get a lower price than you would pay at a dealer. The down side of buying krugerrands online includes a greater chance of getting a counterfeit krugerrand. If you buy using Paypal you are protected up to $2000, but if you buy a lot of krugers exceeding $2000 you may be at risk. You can also mitigate risk by buying from sellers with a large number of sales and a good feedback score. Finally selling krugerrands on ebay isn't free. As of this writing, it costs about $70 to sell a krugerrand. While the seller pays these fees, they are passed on to the buyers in terms of higher prices.

So what is the right answer- should you buy from a dealer or buy online? We recommend a hybrid approach. Find a dealer who sells online. This way you minimize risk, and you get all the conveniences of an online purchase. In absence of a dealer listing you like, do your research, determine the current krugerrand price, and check the quotes from both dealers and online, and then make your decision. If you decide to buy krugerrands online versus buying from a dealer, just make sure to do your research first!

The South African gold Krugerrand is one of the most collectible coins. In fact, no coin collection is complete without some of these hardy and valuable gold coins. But selling Krugerrands does require some research to ensure you make a satisfactory profit. The key to successfully selling Krugerrands, and to getting the most value from them, is to know how the gold market is faring. The price of Krugerrands is related directly to the current market price for gold. You can find the current gold price by doing a web search for "gold spot price". The second half of the Krugerrand value is a premium, which is charged for shipping, handling and mintage. You can see what that is by taking the price of currently listed Krugerrands, and then subtracting the spot price.

Those sellers who have studied the gold market, will be able to recognize a good price. Even more importantly, they'll recognize a bad one, too. With the popularity of eBay, many people opt to sell their gold Krugerrands through the online auction house. This is a fairly simple process. But it does require some patience. You'll have to wait for bids, for instance. And often, those bids will be lower than what you are looking for. To speed along the process, and to attract top online buyers, be sure to upload a photo of your gold Krugerrands. This will allow eBay visitors to see that you are offering a quality collection. You'll find that the bids pile up much faster when you include photos with your listing.

The more traditional way to sell Krugerrands, and the way still preferred by most, is to deal directly with a reputable coin dealer. The key here is to work only with ethical dealers. The best way to find reputable dealers is to log onto the U.S. Mint's home page. From here, you can access the Mint's dealer locator page. It's then a simple process to select your own state and pull up a list of reputable coin dealers in your area.

Once you have a list of dealers, visit as many of them as you can. Most dealers will rely on the current market price of gold when quoting you a sales price. But there may be some fluctuations. If you're patient enough, and willing to do the necessary legwork, you'll undoubtedly find a dealer offering you a fair price for your gold Krugerrands. Most dealers, of course, will want to check the authenticity of your gold Krugerrands. Factor this brief delay into your sale plans. South African krugerrands never go out of style with serious coin collectors. That's good news if you're trying to sell them. Remember, though, to rely on your common sense. If an offer, whether from a dealer or an online bidder, seems too low, you have the right to walk away. You never know: A much better offer may soon be on its way.

2075

The South African Krugerand coin is one of the most popular gold collector's coins in the world. The original Krugerrands contain exactly one ounce (33.93 grams) of pure gold, plus a small amount of copper (2.826 grams) to create a stronger, more durable gold coin. Krugerrand therefore have a total weight of 1.0909 troy ounces (33.93 grams). Some new collectors worry that they are receiving less gold when buying a coin of less than 100% purity, but in truth 1 ounce Krugerrands contain exactly the same amount of gold as a 100% gold coin like the Canadian Maple Leaf. The weight of the additional metals is not counted in the gold's weight. The South African Krugerand coin was the first gold coin to contain exactly one ounce of pure gold. Previous gold coins such as gold sovereigns contained amounts of gold meant to correspond with the coin's face value as currency.

The Krugerrand is named after Paul Kruger, the Boer resistance leader fifth president of the South African Republic. Kruger's face is printed on one side of the coin, while a depiction of the springbok antelope is printed on the reverse. Both Kruger and the springbok antelope have become widely recognized symbols of South Africa. The famous Kruger National Park is also named after Paul Kruger.

Krugerands were first minted starting in 1967 to market South African gold abroad. The coin has legal tender status in South Africa, with it's value corresponding to the current market values of 1 troy oz. of gold. It was never intended to be used as a regular daily medium of exchange, but rather was made legal tender in order to be considered collectable. At the time, it was illegal for Americans to own gold bullion, but it was legal to own foreign coins. The Krugerrand made use of that loophole and became widely owned in the United States. In later years however, importing the Krugerrand into the United States and many other countries was banned to protest the Apartheid government. During the time of those bannings, other nations began minting their own gold coins with legal tender status to fill the gap.

In 1980 the Krugerand was released in different weights, specifically 1/10 oz. Krugerrands, 1/2 oz. Krugerrands, and 1/4 oz. Krugerrand gold coin. Also, in the early 1980s, silver Krugerands were minted, but their source remains a mystery as they were minted privately. There is no reference to South Africa anywhere on the coins, perhaps to bypass the Apartheid bannings. The name "Krugerrand" is printed on the coins, but the name Krugerrand is a trademark and was used without permission. There is no indication on the coins of who they were minted or issued by.

Despite the presence of Canadian Maple Leaf gold coins, Australian Kangaroo gold coins, and US American Eagle gold coins on the market, the South African Krugerand still maintains some prestige as the original legal tender coin whose value is based on its gold content. It is also popular for it's different appearance, having a slightly orange, penny-like copper tone that makes it stand out from other more lightly colored gold coins (either made with silver alloys, or of 100% pure gold). They are a fine addition to any collection, and a sound investment for any investor.

1f73

In 1967, the government of South Africa minted the gold krugerrand to increase the marketing of South African gold. Although the krugerrand is considered as legal currency in South Africa, it is rarely used for that purpose. Instead, it has become a favorite of coin collectors all over the world, known as "medal coins." This was the first coin to be valued at the monetary value of gold, or the current rate of gold prices. For example, a U.S. silver dollar is worth exactly one dollar unless it is unusual in some way that makes it more valuable to collectors. The krugerrand was originally a one-ounce piece of 22 carat gold with no monetary value imprinted on it; its value is based upon the market gold price that frequently fluctuates. Today krugerrands are made in a variety of weights, including half-ounce, quarter-ounce and one-tenth ounce.

Coin dealers and collectors often obtain krugerrands through estate sales. The price that the dealer or collector will pay depends upon the current gold market price on that particular day. For example, imagine that a family man invests in buying 100 krugerrands when the gold prices are $300 per ounce. When the man dies ten years later, the value of the krugerrands will be based upon gold prices at that time. Like any investment, buying gold krugerrands is never a "sure thing." When the man dies, gold may be priced at $150 per ounce, meaning that the family will have lost money on the investment. However, gold prices may well be $700 per ounce, giving the family a sizeable return on the investment if they decide to sell the krugerrands. In cases like this, probate attorneys recommend that surviving heirs consult a coin dealer about the fluctuation of gold prices; knowing when to sell and when to hang on is a matter that requires professional consultation.

If you buy gold krugerrands as an investment, keep in mind that these coins are 22 carat gold; an extremely high grade in quality. Pure gold, at 24 carats, is too soft to be minted so it is "cut" with various amounts of metal to make it hard enough to mint. Novice investors often make the mistake of comparing the gold prices for jewelry items made from 18, 14, or 12 carat gold with the gold price or market value of the 22 carat krugerrand. All gold is not created equal!

The South African krugerrand was the prototype model for other one-ounce coins like the Canadian Gold Maple Leaf, the Australian Nugget, the Mexican Gold Peso, and the United States Golden Eagle. Since these coins are not as widely available as investments as the krugerrand is, they are sometimes subjects of counterfeiting. Have a coin consultant investigate the current gold price, the authenticity of the coin, and the coin's carat weight.

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I hope you've been enjoying my posts lately. I thought I might do something different today and rustle up a few bits of info from around the WWW. These are some of the news items and blog posts that have been popular over the last few weeks. Leave me your thoughts.

Gold Krugerrand misspelling bargains on eBay US

0.70 Gram Australian Gold Nugget - Bonus Mini Krugerand. US $25.00 (0 Bid) End Date: Wednesday Jan-13-2010 18:17:44 PST Bid now | Add to watch list. NEW OLD STOCK Ladies 1978 GOLD KRUGERAND Coin Ring. US $29.00 (0 Bid) ...

Gold Krugerrand misspelling bargains on eBay US

LOT OF 10 MINI Krugerand GOLD COINS 22K. US $7.99 (0 Bid) End Date: Monday Jan-11-2010 17:18:52 PST Bid now | Add to watch list. NEW OLD STOCK Mens 1978 GOLD KRUGERAND Coin Ring. US $39.00 (0 Bid) End Date: Tuesday Jan-12-2010 9:22:36 ...

Gold Krugerrand misspelling bargains on eBay UK

22ct Gold 1/Tenth Krugerand Coin And 9ct Gold Mount. £0.99 (0 Bid) End Date: Thursday Jan-14-2010 19:15:46 GMT Bid now | Add to watch list.

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

If you've been keeping up with my blog posts lately you'll know I've come to adding a few news posts from around the web on this subject. I've got a couple more today that are new and updated, so let me know what you think of em...

Gold Krugerrand Price How Much Is A 1 Oz. Gold Krugerrand Coin ...

How much is a 1 oz. gold krugerrand coin worth right now? - gold krugerrand price Or, if a source for finding the price of 1 ounce of gold?

Gold Krugerrand misspelling bargains on eBay US

1982 1oz Krugerrand Krugerand Kruggerand! MINT!!!! US $1229.99 (0 Bid) End Date: Wednesday Jan-13-2010 14:20:30 PST Bid now | Add to watch list. 1984 1/2 Half oz Krugerand South Africa Gold Coin CoinC. US $10.50 (2 Bids) ...

Gold Krugerrand misspelling bargains on eBay US

KRUGERAND 1/4 oz PURE GOLD 1994 PROOF. US $0.99 (1 Bid) End Date: Tuesday Jan-05-2010 6:26:18 PST Bid now | Add to watch list. NEW OLD STOCK Ladies 1978 GOLD KRUGERAND Coin Ring. US $29.00 (0 Bid) End Date: Monday Jan-11-2010 8:11:41 ...

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

The Krugerrand from South Africa is worth the market value of it's gold content. This coin is not  intended to be used for currency, it is considered to be a  medal or bullion coin.

Krugerrands are available in a many sizes making them a great investment for those that want to build their gold investment over the years. Krugerrands are one of the worlds most popular gold coins with over 42 million minted so far. Krugerrands are inexpensive and readily available.

Krugerrands are 91.67 pure gold and one troy ounce would weigh 1.0909 to provide one troy ounce of pure gold, with the rest of the weight consisting of copper giving the Krugerrand a slight orange hue. This is not a problem, almost all modern coins are mixed with some alloy to make coins harder and more durable.

Krugerrands are very popular as an investment because the premium over spot is usually pretty low. These days if you pay 1% over spot you are doing great, but with gold soaring right now it will take some research to find the right dealer.

One of my favorite ways to purchase any gold coin is on eBay. eBay's gold auctions always prove that the value of a coin is only what is buyer is willing to pay for it, and on eBay it gets right down to the real action.

eBay has a flourishing and very active market, and here is the place where you can really get the best values buying and selling your gold coins.

eBay is easy to search for the coins you wish to acquire. Just type whatever you want in the search box and you will view all the auctions related to the coin.

One of the best features of eBay is that you can view what each particular coin sold for in the past 90 days, a great tool for making sure you get the best value for your money. When you are viewing the auctions, just look over to the right and you will see an option for "completed items". Just check the box and there it is! the outcome of every eBay auction in the past 90 days.

You may ask, is it safe to trade on eBay? The answer is yes. There are many ways buyers are protected, but the best way to determine if a dealer or individual are reputable is to look at their feedback score and you can also view the comments previous customers have left for the seller.

Optimally you would want to do business with a seller with a feedback score of 100%. But you have to take everything into consideration. If a seller has a feedback score of less than 100% he still may be a reputable dealer. Look at the total comments left in the upper right hand corner of the auction page.

If you are going to purchase or sell Krugerrands or any other coin just keep an eye on the market as daily fluctuations can be dramatic at times. Also, do not make any purchases from emails you receive outside of eBay. There are many shady dealers and individuals that will send you a message through the eBay message system or acquire your email address and ask you to complete transactions outside of eBay. Don't do it. Besides risking getting ripped off, you are stealing money from a legitimate business. eBay provides a service and they should get paid for that service. So besides eliminating the risk of being ripped-off, do the right thing.

If you're thinking of buying gold, it's very possible that your first thought is to buy Krugerrands, and if you do that you would be okay because only in rare instances are there are better forms of gold for investing purposes. Of the best known gold bullion coins, the Krugerrand nearly always carries lowest premium. Additionally, the Krugerrand enjoy a very active market, which in important when it comes time to sell.

Although first minted in South Africa in 1967, the Krugerrand was introduced in the United States in 1975 immediately after the federal government lifted the ban on Americans owning gold bullion. The Krugerrand was an immediate hit as investors sought to protect themselves from the price inflation caused by the "bread and butter" economic policies stemming from the Vietnam War.

The Krugerrand remained the dominate gold bullion coin until 1985 when Congress banned its importation because of South Africa's apartheid, a political system that enabled the whites to rule the country. From 1974 through 1985, South Africa sold some 42 million Krugerrands worldwide and possibly 25 million in the United States.

With the ban, the importation of Krugerrands ceased, but an active secondary market for the coins continued through out the ban and continues to this day. Krugerrands are bought and sold daily, in small quantities at coin shops and in huge quantities among gold bullion coin dealers.

When the ban was lifted in 1995, after the election of Nelson Mandela as South Africa's first black president, the South Africans made an attempt to again market the Krugerrand in the United States. However, by that time the American Gold Eagle coin, which the U.S. Mint introduced in 1986, had become the popular gold bullion coin, and the South African effort was futile. Americans could buy the Gold Eagles at the same price as Krugerrands, and Gold Eagles became their bullion coins of preference.

During the height Financial Crisis of 2008, demand for all forms of gold was so great that Krugerrands were again imported into the United States, and today new, 2009-dated Krugerrands sometimes are available. However, most trading in Krugerrands is in the secondary market for coins dated 1974-1984.

Although the Krugerrand comes in four sizes, 1-oz, ½-oz, ¼-oz and 1/10-oz, the 1-oz coin is the more popular. The 1-oz coin contains exactly 1-oz of gold but weighs slightly more than one ounce because it is 22-karat (91.67%) gold. Precisely, the Krugerrand is an alloy of 31.1 grams of gold and 2.83 grams of copper. Rarely are fractional-ounce Krugerrands available.

© Bill Haynes 2009