How to Buy Krugerrands Coins

Krugerrand coins, first introduced in 1967 by the South African Mint, are among the most iconic and widely recognized gold bullion coins in the world. Known for their rich history, high gold content, and distinctive design featuring President Paul Kruger and the springbok antelope, these coins have long been a favorite for investors and collectors alike.

This comprehensive guide will show you how to buy gold coins like Krugerrands safely and efficiently without high fees.

What Are Krugerrands?

The South African Krugerrand is one of the oldest national gold bullion coins in the world. Created in 1967, each Krugerrand contains 1 ounce of 22-karat gold along with bits of other metals like copper to ensure durability.

This coin is unique since it’s recognized as legal tender within South Africa, along with its currency, the Rand. This coin has grown in popularity and inspired other national coins like the Canadian Maple Leaf and the revival of the American Gold Eagle coin. 

Brief History of Krugerrands

Krugerrands are popular coins due to their long history, stable values and accessible prices. Some countries including the United Kingdom banned the transactions of these coins when Apartheid was in effect. Despite rocky years, Krugerrand coins have become popular ever since the apartheid ended in 1994.

How to Buy Krugerrands

One of the best ways to buy Krugerrands is via Gold IRAs. Here is how.

Step 1: Open an Account

Open an online account to trade these coins. Often, these accounts can be created in less than 30 minutes and some companies offer new investors special offers.

For example, American Hartford Group currently offers free shipping for its gold and silver products as well as offering a free gold IRA kit. They also include free transit insurance, which protects your precious metals en route to your address.

Step 2: Choose the Gold Coins You Want to Buy

Krugerrands are available in three varieties, ½ ounce, ¼ ounce and 1/10 ounce. In addition to being able to buy gold Krugerrands, you can buy silver bullion Krugerrands that were released in 2018.

Regardless of the type of gold coin that you purchase, check the weight and composition. For example, Krugerrands have a 92%/8% composition of 22-karat gold to copper.

Step 3: Make Your Purchase

Both partners require new investors to call during business hours to purchase, trade, or sell Krugerrands to confirm your order, the price and your physical address. 

Unlike stocks that can be bought and sold purely online, physical gold requires extra care since it’s being transported to a physical location.

How to Trade or Sell Your Krugerrands

These partners can help you sell or exchange Krugerrands for similar products. Work with brokers like American Hartford Group that have no buyback fees. Working with these brokers will also prevent you from wasting time and money by needing to sell these coins to outside parties.

Another factor to consider when trading gold or silver within a self-directed IRA are the required minimum distributions (RMDs) that IRAs are subjected to. You’re required to start withdrawing a percentage of your account when you reach age 72. These two companies allow you to sell fractions of your gold to meet but not exceed RMD requirements.

Are Krugerrands a Good Investment?

It’s no secret that the economy is in a tight spot from turbulent markets. Aside from these points, inflation is still at record highs, meaning that it could make sense to start trading gold coins.

Krugerrands are a user-friendly and affordable way to gain exposure to gold. Working with trusted partners like American Alternative Assets or American Hartford Gold Group can help you buy, sell and trade these coins easily. You can also reduce tax liabilities by opening a Gold IRA with these partners.

Frequently Asked Questions