A copper and gold alloy, the 22K gold krugerrand coin is sought by numismatists and everyday people like you and me looking to buy gold. Discover the people behind the coin, and what makes its appearance unique in this short article.
South Africa need a way to monetize its vast resource- gold. The kruger, first struck in 1967, was the answer, exploiting a clever loophole by being marketed as legal tender. This allowed Americans to own krugerrands, but there were other complications, which we'll go into shortly. But first, a little about the pioneering kruger.
The krugerrand has become the default gold bullion coin for world investors. This was the first coin to be valued at the monetary value of gold. If you look a United States dime, unless it's a collector's item, it's worth ten cents. Krugerrands are traded differently based on the prevailing gold price A 22K kruger isn't stamped with a denomination in the traditional sense, but with the weight (1/4 oz, 1/10oz, 1/2 oz and 1 oz) of the gold it contains.
For most of the 20th century, US citizens could not own gold bullion legally, and thus would have been prohibited from buying Krugerrands. When the Republic of South Africa made them legal tender, this sidestepped the laws and allowed investors to buy them as "foreign coins." The practice of Apartheid was condemned by the west, and in the United States executive order stopped the purchase of krugerrand gold coins until the government ended the practice in the mid 1990s.
On the head of the krugerrand gold coin there is a picture of Paul Kruger, or Uncle Paul, the leader of the Boers and President of the Transvaal. A springbok antelope, a symbol of the Republic of South Africa, graces the tail.
Purchasing a krugerrand is not a difficult task, and not a bad idea in today's uncertain times. Twenty years ago gold was trading at around $600 a troy ounce. Today that figure is closer to $1000, which speaks to the strength and stability of gold. As the price of gold goes, so goes the price of a kruger. It's a good idea to watch the gold spot price, so you can spot opportunities to buy or times to sell.
Be wary of the silver "krugerrands" - they are not stamped out by the South African Mint- in fact no one knows where they came from. You can tell a silver krugerrand by the metal of course, the fact they don't have the country name on them, and they reference a different Kruger. They do, however, bear a springbok antelope. The government did not commission these coins and they are not authentic. Do not buy these coins. Sales of the krugerrands were dramatic, and other nations including Canada, the USA, and China have begun to sell their own gold bullion coins.
Friday, May 15, 2009
Tuesday, April 21, 2009
Buy Krugerrands and Avoid Fakes
When you buy krugerrands the majority of fake krugerrands can be identified easily. The best and easiest way to avoid a fake krugerrand is not to get one in the first place –you can eliminate a lot of risk with gold bullion coins by simply dealing with a reputable dealer. Dealers who handle gold coins every day will notice when one is off color or lighter than it should be. They also have an incentive to ensure that their reputation remains intact for future business.
Regardless of where you buy your gold krugerrands, it’s still a good idea to verify their authenticity. Fortunately the South African mint publishes standards on what’s an authentic krugerrand should look like. Specifically the weight, diameter, and thickness are all published so that anyone can verify the gold in their hand is an actual krugerrand.
The reason why knowing the krugerrand’s specifications is valuable because of the very specific properties of gold; to be more exact gold is a very dense and heavy metal. This density, or specific gravity, is very difficult to counterfeit. For example if a counterfeiter made a krugerrand using an authentic mold cast from a real coin, but instead used lead, the krugerrand and would be only 2/3 as heavy as a real krugerrand gold coin. The only other metals that have the same specific gravity as gold are radioactive, with the exception of tungsten, which is brittle and difficult to work cold. You could also probably get away the with making a fake krugerrand out of platinum, however, given that platinum is more expensive than gold as of this writing, it’s not a good idea as a criminal enterprise.
To check a krugerrand yourself you need a good quality digital scale, and accurate calipers. The calipers will be used to check the diameter and also the thickness of the coin. Remember, the diameter, weight and thickness must all be correct to ensure your coin and is actually made out of gold.
OK if you’re ready to buy a one ounce krugerrand, here’s what you need to look for: it should weigh 33.930 grams, have a diameter of 32.77mm and a thickness of 2.84 mm. A 1/2 oz krugerrand weighs 16.965g, has a diameter of 27.07mm and is 2.215 mm thick. A 1/4 oz krugerrand weighs in at 8.482 g, has a diameter of 22.06mm, and a thickness of 1.888 MM. Last but not least, a one tenth ounce gold krugerrand weighs in at 3.393 g, has a diameter 16.55mm and a thickness of 1.35 mm.
If all that is a bit complicated, there’s a quick and easy way to test the krugerrand. Fisch instruments makes a gold krugerrand tester which tests the weight, thickness, and diameter in less than 20 seconds. The tester is quite small and comes in a wallet which accommodates several different sizes of krugerrands. Unfortunately there are unscrupulous people who would try to sell you a counterfeit krugerrand. You can buy krugerrands with confidence if you know what to look for –which is of course the weight, diameter, and thickness.
Regardless of where you buy your gold krugerrands, it’s still a good idea to verify their authenticity. Fortunately the South African mint publishes standards on what’s an authentic krugerrand should look like. Specifically the weight, diameter, and thickness are all published so that anyone can verify the gold in their hand is an actual krugerrand.
The reason why knowing the krugerrand’s specifications is valuable because of the very specific properties of gold; to be more exact gold is a very dense and heavy metal. This density, or specific gravity, is very difficult to counterfeit. For example if a counterfeiter made a krugerrand using an authentic mold cast from a real coin, but instead used lead, the krugerrand and would be only 2/3 as heavy as a real krugerrand gold coin. The only other metals that have the same specific gravity as gold are radioactive, with the exception of tungsten, which is brittle and difficult to work cold. You could also probably get away the with making a fake krugerrand out of platinum, however, given that platinum is more expensive than gold as of this writing, it’s not a good idea as a criminal enterprise.
To check a krugerrand yourself you need a good quality digital scale, and accurate calipers. The calipers will be used to check the diameter and also the thickness of the coin. Remember, the diameter, weight and thickness must all be correct to ensure your coin and is actually made out of gold.
OK if you’re ready to buy a one ounce krugerrand, here’s what you need to look for: it should weigh 33.930 grams, have a diameter of 32.77mm and a thickness of 2.84 mm. A 1/2 oz krugerrand weighs 16.965g, has a diameter of 27.07mm and is 2.215 mm thick. A 1/4 oz krugerrand weighs in at 8.482 g, has a diameter of 22.06mm, and a thickness of 1.888 MM. Last but not least, a one tenth ounce gold krugerrand weighs in at 3.393 g, has a diameter 16.55mm and a thickness of 1.35 mm.
If all that is a bit complicated, there’s a quick and easy way to test the krugerrand. Fisch instruments makes a gold krugerrand tester which tests the weight, thickness, and diameter in less than 20 seconds. The tester is quite small and comes in a wallet which accommodates several different sizes of krugerrands. Unfortunately there are unscrupulous people who would try to sell you a counterfeit krugerrand. You can buy krugerrands with confidence if you know what to look for –which is of course the weight, diameter, and thickness.
Saturday, March 14, 2009
Krugerrand History
The one ounce gold krugerrand history begins not on July 3rd, 1967 when it was first struck- not even in planning and strategy meetings held by the Chamber of Mines of South Africa (established in 1889 as a voluntary private sector organization to represent the interests of mining employers) who were its architects.
Witwatersrand, South Africa or the "ridge of white waters" in Afrikaans, is truly where Gold Krugerrand history starts. These mineral rich hills run east to west near Johannesburg for over sixty miles. They produce many minerals including uranium- and in 1884 the first gold discovery was made. The president of the Transvaal at that time was Paul Kruger, who knew that the gold discovery would forever change the face of South Africa. As he predicted, the rich gold find brought in many foreign miners looking to make their fortune. As more and more foreigners entered, they eventually began to outnumber the Boers, and their protests for their rights lead to increasing levels of conflict. Underlying this concern for their rights, was the British desire to control gold rights.
The spark that set off the powder keg of the second Boer war came in 1899, when the British demanded equal rights for all the foreign miners. Paul Kruger, concerned about keeping the Transvaal independent, fired back an ultimatum of his own. All British to be out within forty-eight hours. Needless to say neither side backed down, and a war raged for three years. The British eventually prevailed in 1902, and the Transvaal was absorbed- however Boers managed to salvage some conditions so it was not a total rout.
Politics settled, the march of the Gold Krugerrand carried on. A Krugerrand would be nothing without that heart of precious metal- refined gold bullion. In 1920 the Transvaal Chamber of Mines needed a consolidated refinery to handle all the gold in South Africa. The Rand Refinery was created to meet this need, and has been in continuous operation every since.
The 1 oz Krugerrand takes its name from a combination of Paul Kruger's surname, and the Rand, which is the currency of South Africa (the Rand was taken from Witwatersrand). The obverse of the 1 oz Krugerrand has a portrait of Paul Kruger, designed by Otto Schultz. Coert Steynberg designed the reverse, which is a Springbok antelope, a national symbol of South Africa.
With Executive Order 6102 and the Trading with the Enemy Act of 1917, United States citizens were effectively barred from owning gold bullion. In 1967 the Chamber of Mines of South Africa had a clever plan for their fledgling 1 ounce Gold Krugerrand. By declaring the coin legal tender of South Africa, it was classified as "foreign coin", and US citizens could buy it.
They also had another trick up their sleeve, instead of putting a value on it- they put the weight of the gold bullion on the coin. This allowed a quick and easy method to trade gold bullion without the need to melt and assay its gold content. This also tied the value of the Krugerrand directly to the underlying gold value. It's interesting to note that Krugerrands are not 24 carat gold- they are alloyed with copper which gives them their dark golden color and adds strength. Rest assured however, that they do contain one full ounce of gold bullion.
Until apartheid was abolished in the middle of the 1990s, it was still illegal to import Krugers in western countries. In spite of this the Kruger was still a commercial success. Forty-six million ounces later, it is remains the world's most popular bullion investment coin. The 1 oz Gold Krugerrand history leads from the rolling hills to the highest political offices, and beyond.
Witwatersrand, South Africa or the "ridge of white waters" in Afrikaans, is truly where Gold Krugerrand history starts. These mineral rich hills run east to west near Johannesburg for over sixty miles. They produce many minerals including uranium- and in 1884 the first gold discovery was made. The president of the Transvaal at that time was Paul Kruger, who knew that the gold discovery would forever change the face of South Africa. As he predicted, the rich gold find brought in many foreign miners looking to make their fortune. As more and more foreigners entered, they eventually began to outnumber the Boers, and their protests for their rights lead to increasing levels of conflict. Underlying this concern for their rights, was the British desire to control gold rights.
The spark that set off the powder keg of the second Boer war came in 1899, when the British demanded equal rights for all the foreign miners. Paul Kruger, concerned about keeping the Transvaal independent, fired back an ultimatum of his own. All British to be out within forty-eight hours. Needless to say neither side backed down, and a war raged for three years. The British eventually prevailed in 1902, and the Transvaal was absorbed- however Boers managed to salvage some conditions so it was not a total rout.
Politics settled, the march of the Gold Krugerrand carried on. A Krugerrand would be nothing without that heart of precious metal- refined gold bullion. In 1920 the Transvaal Chamber of Mines needed a consolidated refinery to handle all the gold in South Africa. The Rand Refinery was created to meet this need, and has been in continuous operation every since.
The 1 oz Krugerrand takes its name from a combination of Paul Kruger's surname, and the Rand, which is the currency of South Africa (the Rand was taken from Witwatersrand). The obverse of the 1 oz Krugerrand has a portrait of Paul Kruger, designed by Otto Schultz. Coert Steynberg designed the reverse, which is a Springbok antelope, a national symbol of South Africa.
With Executive Order 6102 and the Trading with the Enemy Act of 1917, United States citizens were effectively barred from owning gold bullion. In 1967 the Chamber of Mines of South Africa had a clever plan for their fledgling 1 ounce Gold Krugerrand. By declaring the coin legal tender of South Africa, it was classified as "foreign coin", and US citizens could buy it.
They also had another trick up their sleeve, instead of putting a value on it- they put the weight of the gold bullion on the coin. This allowed a quick and easy method to trade gold bullion without the need to melt and assay its gold content. This also tied the value of the Krugerrand directly to the underlying gold value. It's interesting to note that Krugerrands are not 24 carat gold- they are alloyed with copper which gives them their dark golden color and adds strength. Rest assured however, that they do contain one full ounce of gold bullion.
Until apartheid was abolished in the middle of the 1990s, it was still illegal to import Krugers in western countries. In spite of this the Kruger was still a commercial success. Forty-six million ounces later, it is remains the world's most popular bullion investment coin. The 1 oz Gold Krugerrand history leads from the rolling hills to the highest political offices, and beyond.
Sunday, March 8, 2009
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.
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.
Saturday, March 7, 2009
Privacy Policy
Buy Krugerrands takes your privacy seriously. This privacy policy describes what personal information we collect and how we use it.
All web servers track basic information about their visitors. This information includes, but is not limited to, IP addresses, browser details, timestamps and referring pages. None of this information can personally identify specific visitors to this site. The information is tracked for routine administration and maintenance purposes.
Where necessary, Buy Krugerrands uses cookies to store information about a visitor's preferences and history in order to better serve the visitor and/or present the visitor with customized content. Advertising partners and other third parties may also use cookies, scripts and/or web beacons to track visitors to our site in order to display advertisements and other useful information. Such tracking is done directly by the third parties through their own servers and is subject to their own privacy policies.
If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page. If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at the Network Advertising Initiative.
Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Privacy Center.
Note that you can change your browser settings to disable cookies if you have privacy concerns. Disabling cookies for all sites is not recommended as it may interfere with your use of some sites. The best option is to disable or enable cookies on a per-site basis. Consult your browser documentation for instructions on how to block cookies and other tracking mechanisms.
Contact Information
Concerns or questions about this privacy policy can be submitted in the comments section for further clarification.
Routine Information Collection
All web servers track basic information about their visitors. This information includes, but is not limited to, IP addresses, browser details, timestamps and referring pages. None of this information can personally identify specific visitors to this site. The information is tracked for routine administration and maintenance purposes.
Cookies and Web Beacons
Where necessary, Buy Krugerrands uses cookies to store information about a visitor's preferences and history in order to better serve the visitor and/or present the visitor with customized content. Advertising partners and other third parties may also use cookies, scripts and/or web beacons to track visitors to our site in order to display advertisements and other useful information. Such tracking is done directly by the third parties through their own servers and is subject to their own privacy policies.
If you would like more information about this practice and to know your choices about not having this information used by these companies, you can visit Google's Advertising and Privacy page. If you wish to opt out of Advertising companies tracking and tailoring advertisements to your surfing patterns you may do so at the Network Advertising Initiative.
Google uses the Doubleclick DART cookie to serve ads across it's Adsense network and you can get further information regarding the DART cookie at Doubleclick as well as opt out options at Google's Privacy Center.
Controlling Your Privacy
Note that you can change your browser settings to disable cookies if you have privacy concerns. Disabling cookies for all sites is not recommended as it may interfere with your use of some sites. The best option is to disable or enable cookies on a per-site basis. Consult your browser documentation for instructions on how to block cookies and other tracking mechanisms.
Contact Information
Concerns or questions about this privacy policy can be submitted in the comments section for further clarification.
Wednesday, March 4, 2009
How to Buy Krugerrands on eBay
If you're ready to buy krugerrands on eBay you've come to the right place. There are few areas to focus on- first is what is the going rate for the particular size of the Krugerrand you want to buy, how to minimize risk of getting a counterfeit krugerrand, and what to do if you get a fake Krugerrand.
Krugerrands are priced based on the current price of gold- or the “spot price”. In addition to this, circulated Krugerrands also command a premium, for “shipping, handling and mintage”. Premiums are higher for smaller krugers- so a 1/10 oz will have a proportionately higher price than a 1 oz kruger, something to keep in mind if you want to acquire a full ounce or more of gold. Basically that means that you’re going to pay a fee on top of the spot price to buy the gold bullion in Krugerrands. (Be careful here, if you’re looking to buy a collector targeted Krugerrands (ie proofs), you’re going to pay a higher premium due to a lower mintage, and the special preparation that proof Krugerrands undergo). If you just want to invest in gold, stick to the circulated Krugers.
So a good source of current prices for Krugerrands is…eBay! Go to eBay and login. If you don’t have an account create one, it’s free and you’ll need it to buy krugerrands on ebay anyway. You have to be logged in to see completed listings. Start off by searching for your krugerrand- say something like “1 oz krugerrand”. When the results come back, they’re going to be the current live auctions. Look them over, but you want to know the latest auctions have closed at. If you look under 'Preferences' (left hand side, toward the middle to bottom of page),’Show Only’ check 'Completed listings'. Now you can see the market price of krugerrands (the ebay completed auction price)- take that number, subtract the gold spot price and you can tell what the premium is going to be. You may also want to take note of shipping and insurance fees- ebay doesn't charge buyers fees, but these extra charges will add up on your final bill. Okay we've talked a bit about how krugerrands are valued, let's talk a little bit about how to minimize risk of getting a fake in the mail.
The majority of sellers on eBay are not there to scam you. Most sellers are reputable and they want to trade fairly. By definition, an auction is a free market, and this usually results in a mutually beneficial buyer/seller relationship. Unfortunately there are some less reputable sellers out there- so here are some tips on how to avoid them.
1. Look for the seller feedback score. Click it and read the reviews. Ideally you want someone who has several auctions, and a good score. Be leary of that new seller, who the online community hasn't had a chance to report feedback on yet.
2. Look for dealers! Sometimes gold coin dealers and collectors sell on eBay too. This is good news, since they have a better chance of being able to spot a fake before it gets to market. They also have an online reputation to protect, so they have a vested interest in making sure customers are satisfied.
3. Look for coins that are professionally graded. This isn't always an option, but companies such as the Professional Coin Grading Service grade krugerrands.
4. Buy using Paypal - Paypal has a guarantee of up to $2000- which should cover you is you purchase any single krugerrand.
5. Buy that insurance! Make sure that your krugerrand is insured. Mail packages do occasionally go astray.
Ready? Go ahead and bid. Did you win? Great- here's your next steps.
The South African mint has published standards on Krugerrands. This is not just trivia- you see knowing the exact dimensions allows us to make sure that what you have is actually a gold Krugerrand. Gold is a very dense and heavy metal. By measuring the diameter, thickness and weight of every krugerand you buy on ebay, you ensure you have the genuine article. You'll need an accurate scale, and a fine lined ruler, or better yet a caliper to measure. Fakes will frequently be bigger or thicker than a real kruger. Here are some tables to help you.
Weight
Diameter
Thickness
When you buy krugerrands on ebay, it pays to be educated. We hope you have enjoyed this article, and if you would like to see new articles on a particular aspect of that krugerrand purchase just let us know in the comments.
Finding the current Krugerrand Price on eBay
Krugerrands are priced based on the current price of gold- or the “spot price”. In addition to this, circulated Krugerrands also command a premium, for “shipping, handling and mintage”. Premiums are higher for smaller krugers- so a 1/10 oz will have a proportionately higher price than a 1 oz kruger, something to keep in mind if you want to acquire a full ounce or more of gold. Basically that means that you’re going to pay a fee on top of the spot price to buy the gold bullion in Krugerrands. (Be careful here, if you’re looking to buy a collector targeted Krugerrands (ie proofs), you’re going to pay a higher premium due to a lower mintage, and the special preparation that proof Krugerrands undergo). If you just want to invest in gold, stick to the circulated Krugers.
So a good source of current prices for Krugerrands is…eBay! Go to eBay and login. If you don’t have an account create one, it’s free and you’ll need it to buy krugerrands on ebay anyway. You have to be logged in to see completed listings. Start off by searching for your krugerrand- say something like “1 oz krugerrand”. When the results come back, they’re going to be the current live auctions. Look them over, but you want to know the latest auctions have closed at. If you look under 'Preferences' (left hand side, toward the middle to bottom of page),’Show Only’ check 'Completed listings'. Now you can see the market price of krugerrands (the ebay completed auction price)- take that number, subtract the gold spot price and you can tell what the premium is going to be. You may also want to take note of shipping and insurance fees- ebay doesn't charge buyers fees, but these extra charges will add up on your final bill. Okay we've talked a bit about how krugerrands are valued, let's talk a little bit about how to minimize risk of getting a fake in the mail.
Minimizing Risk of Counterfeits When You Buy Krugerrands on eBay
The majority of sellers on eBay are not there to scam you. Most sellers are reputable and they want to trade fairly. By definition, an auction is a free market, and this usually results in a mutually beneficial buyer/seller relationship. Unfortunately there are some less reputable sellers out there- so here are some tips on how to avoid them.
1. Look for the seller feedback score. Click it and read the reviews. Ideally you want someone who has several auctions, and a good score. Be leary of that new seller, who the online community hasn't had a chance to report feedback on yet.
2. Look for dealers! Sometimes gold coin dealers and collectors sell on eBay too. This is good news, since they have a better chance of being able to spot a fake before it gets to market. They also have an online reputation to protect, so they have a vested interest in making sure customers are satisfied.
3. Look for coins that are professionally graded. This isn't always an option, but companies such as the Professional Coin Grading Service grade krugerrands.
4. Buy using Paypal - Paypal has a guarantee of up to $2000- which should cover you is you purchase any single krugerrand.
5. Buy that insurance! Make sure that your krugerrand is insured. Mail packages do occasionally go astray.
Ready? Go ahead and bid. Did you win? Great- here's your next steps.
What To Check When You Receive Your Krugerrand"
The South African mint has published standards on Krugerrands. This is not just trivia- you see knowing the exact dimensions allows us to make sure that what you have is actually a gold Krugerrand. Gold is a very dense and heavy metal. By measuring the diameter, thickness and weight of every krugerand you buy on ebay, you ensure you have the genuine article. You'll need an accurate scale, and a fine lined ruler, or better yet a caliper to measure. Fakes will frequently be bigger or thicker than a real kruger. Here are some tables to help you.
Weight
| Size | Weight |
|---|---|
| 1 oz | 33.930 g |
| 1/2 oz | 16.965 g |
| 1/4 oz | 8.482 g |
| 1/10 oz | 3.393 g |
Diameter
| Size | Diameter |
|---|---|
| 1 oz | 32.77 mm |
| 1/2 oz | 27.07 mm |
| 1/4 oz | 22.06 mm |
| 1/10 oz | 16.55 mm |
Thickness
| Size | Thickness |
|---|---|
| 1 oz | 2.84 mm |
| 1/2 oz | 2.215 mm |
| 1/4 oz | 1.888 mm |
| 1/10 oz | 1.35 mm |
When you buy krugerrands on ebay, it pays to be educated. We hope you have enjoyed this article, and if you would like to see new articles on a particular aspect of that krugerrand purchase just let us know in the comments.
Tuesday, March 3, 2009
Buy Krugerrands on eBay
Welcome to Buy Krugerrands on eBay. This site provides tips and techniques for beginning gold coin investors to buy krugerrands on eBay. If you have questions not covered in our articles, be sure to send them in!
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