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.
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