The Krugerrand Gold Coin is a gold bullion from South Africa. It is named after Paul Kruger who was a former president of the South African Republic. The coin was first minted in 1967 and later got the status of a legal tender to allow American collectors to invest in this gold bullion. This was necessary because the ownership of gold was illegal in the U.S. But owning other currencies was still allowed. Today gold ownership is not limited.
To understand why this gold bullion is so popular today, we have to look at some facts about Krugerrand. Krugerrand:
- is well known and easy to trade.
- contains 1 oz of pure gold.
- has a high durability since a small amount of gold was added to make the coin harder.
- has a beautiful design.
In addition to the original 1 oz gold coin, several smaller versions exist today. The 1 oz, 1/2 oz, 1/4 oz or 1/10 oz Krugerrand gold coins differ in their amount of gold and design.
High gold ingredient and these four versions make Krugerrand the perfect investment option. Especially when the economy is goes down. Normally, the value of gold increases during these times and the Krugerrand follows the gold price.
There are several ways to buy or sell these type of coins. Best options today are the local coin dealer and the Internet. For most traders the local coin dealer might be the best option since he handles the shipment, insurance and can check the quality (coin grade). Of course, many of these local coin dealers have a website today and offer the same service on the Internet.
Another but riskier option is using the online auction websites like eBay. Buying there is risky, because it is not easy to figure out the quality and authenticity of the coins, but it may be possible to get a much better price or rare versions that are hard or impossible to get through your local dealer.
Selling on eBay is the same as buying. The risk is higher, but it may be possible to get a higher price. Of course, shipment, insurance and payment have to be organized which consume a lot of time and money.
As a rule of thumb, if you feel uncomfortable buying or selling on eBay, simply don't do it and visit your local dealer. The online services of some reliable dealers might be an option as
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