By Ron Drzewucki – Modern Coin Wholesale ….
Over on my blog, I ’ ve been writing about bullion. I ’ ve been trying to provide customers with a chance to learn about the cherished metals market : the products, the players, the history, etc. I tied have an ongoing state-by-state breakdown of sales tax in the United States as it concerns aureate, eloquent and other bullion and numismatic items .
so that ’ s why I was thinking of something I noticed amidst all the hubbub at the 2014 American Numismatic Association’s (ANA) World’s Fair of Money. It wasn ’ t the Kennedy 50th Anniversary gold half dollar or the circus that surrounded it. It wasn ’ t the auctions, the full of life crowd, or anything like that.
On the reverse. I noticed a lack of crowd in some places where I thought they should be – the south african booth, for one .
It was like a touch township .
possibly it was the handout of the hottest aureate coin in holocene memory that drew people away. But separate of me felt that the grandfather of the bullion coin renaissance of the recently twentieth century deserved better .
here ’ mho why .
A Brief History
In the 1960s, the annual output signal from South Africa ’ s gold mines was around 70 % of the worldly concern ’ south sum. Facing the end of the gold standard around the world ( experienced here as the “ Nixon Shock ” ) and looking forward to the resumption of private ownership in such countries as the United States ( which happened in 1974 ), South Africa ’ s aureate mine and refine diligence was looking for a room to thrive in this newfangled marketplace .
It decided on the production of investment-grade gold bullion coins, a concept that would appeal to collectors and investors alike. But the innovations didn ’ triiodothyronine barricade there .
Proof and proof-like krugerrands were first gear issued in 1967. These were the inaugural coins that consisted of slenderly over one troy snow leopard of 22-karat gold ( the same purity as the gold American eagle, which came much later ) .
This means that the krugerrand is 91.67 % pure aureate. The other component in the debase is bull. This not only gives krugerrands their classifiable orange-colored shininess, it besides makes the coins harder than early amber bullion products and more insubordinate to scratches .
An crucial quality, considering that the coin was besides the beginning legal sensitive bullion coin, intentionally designed for circulation in its fatherland in addition to international sales .
There is no face value on the coins ; this means that one krugerrand is worth the spot price of amber at the time of any given transaction .
Mass production of the one-ounce krugerrand began in 1970. Half-, quarter- and one-tenth-ounce denominations came out in 1980 .
The name krugerrand is a combination of rand ( South Africa ’ s primary unit of currency ) and Kruger, the last name of Paul Kruger, a celebrated military and political drawing card of the honest-to-god South African republic. His is the stalwart and bearded profile on the obverse of the mint .
possibly amazingly for a coin designed during the apartheid era, Kruger had desegregate rush lineage .
The change by reversal features a springbok, which is a medium-sized antelope native to that region of Africa. It is a symbol of South Africa in much the like way the bison is a symbol of the United States.
Read more: Events Timeline
Krugerrands are manufactured by the South African Mint Company, from gold procured from the Rand Refinery. Each company has a monopoly on its particular slope of the product process ( as a matter of fact, the Rand Refinery owns the trademark on the bible “ Krugerrand ” ) .
To date, over 50 million ounces of krugerrands have been sold around the world. By volume, it is indeed the most popular bullion mint .
There was a prison term, however, when it was illegal to own one .
The history of what we call South Africa is complicated to say the least. But most Americans are mindful of the permeant policy of racial segregation called “ Apartheid ” .
For about 50 years, from 1948 to 1994, the Afrikaner minority-backed National Party maintained its social laterality by imposing severe restrictions on the rights and actions of the black majority population .
Because of this, South Africa was ostracized by much of the external community. The U.N. declared apartheid a “ crime against humanity ” in 1973. Pope John Paul II spoke out against it in 1985. By the late ‘ 80s, the United States had passed economic sanctions against the area .
It wasn ’ triiodothyronine until the fall of the Soviet Union and the subsequent waste of the motivation to prop up any and all anti-communist governments, no matter how repellent, that westerly nations ultimately decided that apartheid must go .
In 1994, the African National Congress, or ANC, won the first racially-inclusive national elections. The party ’ randomness leader, Nelson Mandela, became President .
obviously, this is a condense interpretation of a very complex history. But with the end of the apartheid regimen and President de Klerk ’ s committedness to truly democratic elections, the United States lifted its sanctions on South Africa, making krugerrands legal again .
Influence on the World Stage
It didn ’ t take retentive for other countries to notice the krugerrand ’ mho achiever and begin to issue their own one-ounce arrant gold legal tender bullion coins .
Canada entered the marketplace in 1979 with the initiation of its gold maple leaf. Being the first bullion mint produced outside of South Africa put Canada in a frightful position since krugerrands were illegal, particularly in the coveted american english grocery store .
China ’ s gold panda was first base issued in 1982 and continues to be a leading success to this day .
The United States finally jumped into the plot in 1986 with the beginning gold american eagles. The constitution of the amber eagle contains the same 91.67 % arrant gold as the krugerrand, but while it besides contains copper, the percentage is smaller and about as much flatware is added to the alloy .
The first british gold Britannia coins were released in 1987.
Read more: Events Timeline
All of these coins were more or less based on the krugerrand model. And while much of its thunder may have been stolen by the coins that followed, in these cases imitation in truth is the sincerest form of flattery .
South African Krugerrands Currently Available on eBay
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