Krugerrands - a Good or Bad Bullion Buy?
Krugerrands are arguably one of the most in demand bullion products. Here we lay out the pros and cons of these popular South African coins.
Is a Krugerrand a Good Investment?
Investment advice is always a tricky one. We are not financial advisors and would not like to advise that anything is a 'good' or 'bad' investment. That being said, our team know their products and can advise you on premiums, tax, margins, popularity, ease of sale, supply and demand regarding Krugerrands and all our bullion products.
Do I Pay Tax on Krugerrands?
In the United Kingdom, all investment gold is VAT free. However, as Krugerrands are not legal tender sterling they are liable for capital gains tax (CGT) in the UK if - and only if - your profit exceeds the CGT threshold for the tax year in which you come to sell them.
Do not let the CGT put you off. If you are unlikely to exceed the capital gains tax threshold then the low premiums on Krugers makes them a very attractive investment.
Pros & Cons of Investing in Krugers
For smaller investors Krugerrands are often one of the better buys.
- They are readily available
- They are VAT free
- Their value is easy to monitor
- They are recognised worldwide
- They are easy to buy
- They are easy to sell
- They can be bought at low premiums over the gold price
- They can be sold at small discounts below the gold price
- As 22ct gold, they are more durable than 24ct.
The only disadvantages we can think of for buying Krugerrands are:
- They are not aesthetically pleasing
- The design is the same every year
- They are not exempt from CGT
How Can I Buy Krugerrands in the UK?
If you want to buy Krugerrands, you will want to pay buy the lowest premium Krugerrand. At Chards, we have cheap Krugerrands for sale at a very low premium above the gold spot price. These are Our Choice One Ounce Gold Krugerrand coins. Secondary market (sometimes called pre-owned or secondhand) are our cheapest Krugerrands, they are our choice of date and are chosen at random from available stock.
As with most bullion coins, there are quantity breaks available and the more you buy, the lower the price per coin. We also sell Our Choice Minty Krugerrands - you will pay a slightly higher premium.
If you are looking for a particular date of Krugerrand or a collectors' proof Krugerrand coin or set, take a look at our wide range of coins here. All our coins on our website can be bought easily online. if you do not see what you are looking for or would like assistance, call our team on 01253 343081 and we will be happy to talk you through the process.
What Is the Price of a 1 oz Krugerrand?
When you are buying Krugerrands, the price of a one ounce Krugerrand is:
Live Gold Price + Premium = The Price You Will Pay
Based on live gold price right now the price you will pay will be from £1,502.02 with premiums starting from 2.1%
This price fluctuates with the live gold price and the premium may change. the more you buy, the less you will pay per coin.
At Chards, we display the premiums on our website. We believe this transparency helps you compare our prices and also to monitor the price of gold whilst you are choosing the right time to buy. Premiums do change and if you are on our mailing list you will receive emails with secret special offers that may not be available on our website! Shh, don't tell everyone...
What Is a Krugerrand?
The Krugerrand was the first modern one ounce bullion coin and it took the world by storm. Produced by the Rand Refinery in South Africa, the Krugerrand was a brilliant way to utilise the huge amounts of gold that the mines were producing by bringing investment gold bullion in the form of coins to the average man in the street. Suddenly, everyone could be a gold investor. The gold Krugerrand made gold coins easy to trade, as gold has always been priced in troy ounces. You can find more information on our History of the Gold Krugerrand blog. Prior to 1967, you could see the gold price and if you knew the gold content of your coins you could calculate the intrinsic value of your coins, but the cheap Krugerrand coin made this so much easier.
How Much Does a Gold Krugerrand Coin Weigh?
|Weight of a 1oz Krugerrand||33.9305 grams|
|Fineness of gold||0.917|
|Actual Gold Weight of a 1 oz Krugerrand||31.1035 grams|
The Krugerrand was originally issued as a 1 oz coin as it contains one full troy ounce (31.1035 grams) of gold, but it actually weighs slightly more (33.9305 grams) due to the additional copper.
Because of these smaller sizes, the original Krugerrand is sometimes referred to as a "full" or "one ounce" Kruger or Krugerrand, although within the trade, the word Kruger or Krugerrand is understood to be the full sized original 1 oz version.
You can veiw more of the technical specifications here.
What Price Can I Sell My Krugerrand for Today?
We usually buy Krugerrands at around a 2% discount off the live gold price. However, supply and demand may dictate that this discount is slightly more or slightly less.
We are currently offering £1,451 per coin.
It is a good idea to compare discounts as the live gold price is fluctuating all day, every day, so it is only a fair comparison if you compare percentages rather than the price at the time.
How Can I Sell Krugerrands in the UK?
We are based in the UK, so all of our advice is tailored to the UK and the answer to this question is very easily! We try and make our buying and selling procedures as easy and transparent as possible.
To sell your Krugerrands all you need to do is either bring your Krugerrands in to our Blackpool showroom - or send them via post - and we can then fix a price and pay you. Full instructions are on our Sell To Chard page here. We make payment via bank transfer, cheque or cash and payment is usually affected the same day the deal is done.
Chard are always interested in buying Krugerrands and other gold bullion coins, regardless of whether you have a single coin or a large quantity.
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This guide and its content is copyright of Chard (1964) Ltd - © Chard (1964) Ltd 2022. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited.
We are not financial advisers and we would always recommend that you consult with one prior to making any investment decision.