Gold Krugerrand Prices

One of the first questions a new krugerrand investor has is "How can I find gold krugerrand prices?" When I answer "it depends", I always get a funny look. Krugerrands are valued a couple of different ways- first there is the intrinsic krugerrand value in the gold bullion content. You can get a real time value of the current price of gold by checking the spot price. You can check our widget to the right of this article, or simply google "gold spot price". A little about what this number means. The spot price of gold is set two times daily by the London Gold Pool. This price is then converted into dollars, and is what gold dealers use worldwide as the standard price for gold.

Krugerrand value most certainly comes from gold, but there is also a premium which is added to cost of gold to determine that final krugerrand price. If you are buying a circulated krugerrand with no special rarity- you pay a premium for handling,shipping and mintage. This is the profit margin for the sellers. There are four sizes of krugerrand- 1/10th oz, 1/4 oz, 1/2 oz and 1 oz. Each is named by the amount of gold bullion it contains (although they are slightly heavier due to copper content to make them sturdier). The premiums are higher on the smaller coins- so for example you will pay a proportionally higher fee on a 1/10 oz gold krugerrand than you will on a 1 oz gold coin. Keep this in mind if you want to invest in gold, you can save yourself a bit of money by buying the largest gold coins you can afford. This isn't to take away value from the minature krugerrands, they can be quite stunning as jewelry such as a pendant or krugerragnd cufflinks.

So if you are buying a circulated coin, that's all you need to know to get an accurate price- the spot price and the premium. You can check this by logging into eBay and running search of the particular coin you're targeting, and clicking "show only completed listings". You're looking for listings that have the price in green, with a "sold" box underneath them. You can also check with a few dealers, either online or over the phone and do your own comparison.

If you're looking for a coin with numismatic value -ie collectibility, you're going to pay an additional premium on top of the value of the circulated coins. For example, a proof krugerrand is specially designed to fetch a higher price and be sought after by collectors. The Rand refinery will polish the gold blanks to a high gloss shine. Then the blanks are hand loaded into the press and are double stamped, to ensure they most vivid image possible is set. Proofs also have special characteristics a circulated coin doesn't- like more reeds on the edge of the coin, and a frosted finish. Combine this special treatment with a low mintage (limited number of coins released) and you create a scarcity. Scarce objects of value create a higher premium in a free market, and proofs are no exceptions. If you're looking to buy a collector's krugerrand, your best bet is to visit a number of dealers, and find out what they're charging. You don't have to do this physically of course, however a little face time with a dealer can help you form an opinion about doing business with a merchant. It is also a good idea to have a coin you are considering purchasing professionally graded. Professional Coin Grading Service (PCGS) can grade your coins for a fee (if you join) or refer you to a member that can get them graded for you.

Finally a few words about counterfeit krugerrands. They most definitely exist; however most of them are easy to spot if you know what to look for. Fake krugerrands are usually made out a dense metal, such as lead. However, as dense as lead is, gold is denser still. To make up the weight, a lead krugerrand will be wider and/or thicker than the genuine article, be sure to measure any krugerrands you get, checking the diameter, thickness, and of course the weight specified by the mint. Gold Krugerrand prices are easily determined if you know what to look for.