Wednesday marks the anniversary of South Africa’s iconic Krugerrand. The Rand Refinery minted the first 1oz gold Krugerrand on July 3, 1967.
This iconic coin, featuring the likeness of Paul Kruger on one side and a Springbok, South Africa's national animal, on the other, has captivated collectors and investors for over half a century.
Rael Demby CEO of the South African Gold Coin Exchange (SAGCE) and The Scoin Shop said the Krugerrand is the world’s most traded and trusted bullion coin.
“As a legal tender gold coin with a denomination in ounces of pure gold, the Krugerrand is the only bullion coin conceptually worth its weight in gold. And interest in Krugerrands has never been stronger,” said Demby.
He said with over 50 million ounces of gold Krugerrand coins sold, its reputation as the most extensively collected and traded bullion coin globally is unmatched.
Demby said following the May 29 general elections and the implementation of a Government of National Unity (GNU), the regular man on the street, the consumer, might be enjoying a level of optimism. However, concerns over long-term economic prospects, geopolitical instability, and pressures on global financial systems drive people to explore their options for physical gold coins, particularly Krugerrands.
Demby further explained that clients have a palpable sense of urgency. He said the South Africans were engaging in an unprecedented wave of buying and selling Krugerrands. The current gold price is approximately $2,335 per troy ounce, reflecting a 21.61% increase from the previous year. He said locals were capitalising on gains and buying in gold as a safeguard.
“Our Scoin Shops have never been busier. We’re seeing clients flock to sell and buy gold coins. This trend is driven by high gold prices, prompting many to use gold as an ATM. While repeat customers continue to show strong interest, we are also witnessing a notable influx of first-time buyers,” adds Demby.
The Krugerrand has a long-standing reputation as a reliable store of value in South Africa and internationally. This historical reliability draws interest from buyers seeking stability and value retention in their portfolios.
“In our volatile world, gold remains a haven asset that consistently maintains its value. Krugerrands and gold coins, in particular, offer protection against market and global risks; there is a palpable sense of urgency among our clients,” Demby adds.
The SAGCE and The Scoin Shop remain at the forefront of this growing trend, providing expert advice and secure transactions for those navigating the dynamic gold market.
Sunday Tribune