When the South African mint first issued the one ounce Gold “Krugerrand” in 1967, it was very much a watershed moment in the evolution of the global bullion market. With a diameter of 32.77 mm, and gross weight of 33.93 grams of 22 Karat Gold (net gold content, therefore, of one troy ounce), the coin depicted the African springbok on the reverse, with obverse portrait of the Boer statesman Paul Kruger.
The timing for the Krugerrand’s introduction was ideal. Not only did it stand alone for years as the world’s only available one-ounce bullion issue, it was not until January, 1975 that United States citizens could legally own gold in bullion form. Thus, not only was there zero competition in any form from the American economic juggernaut, but these two factors combined to create a very keen appetite for the Krugers in North America.
Undoubtedly good quantities of the coin found their way into the U.S. covertly during this ownership prohibition, but when the floodgates opened in 1975, an estimated 22 million gold Krugerrands (or 822 tons of Gold!) were imported into the country in the ensuing decade. Ironically, this flow suffered a strangle-hold in 1985 as the United States (and other countries) prohibited the importation of the South African gold coins due to their relation with the apartheid regime of the time.
By this point, however, there was already new competition on the horizon with Canada’s own gold Maple Leaf in 1979, among others. Even into 1980, however, the Krugerrand commanded a remarkable 90% of the world’s gold bullion coin market. Domestically, the Krugerrand still enjoys a loyal following in Canada to this day, however it now sits at a pricing disadvantage under our federal HST legislation, which – due to its non-pure 22K status, compared to our Maple Leaf’s .999 fineness – causes it to attract sales tax when sold within Canadian borders.
The Krugerrand would undergo a modest evolution over the years, with the introduction of fractional sizes beginning in 1980, as well as the availability of frosted Proof strikings for collectors. As both a collector and dealer, however, one prolonged “missing link” in the extension of this classic issue continued to both disappoint and perplex me: namely, the availability of a Silver Krugerrand. Sure, I have a Sterling Silver “10th anniversary” Kruger I bought from some direct-marketing flyer in 1977, but it’s a smaller, paler reflection of the noble coin that should have joined the current myriad of world Silver bullion coins decades ago.
Now, however, the wait and lamenting is finally over. After my muted excitement at the introduction of a Silver Kruger in 2017 – only to discover it was an extremely expensive “collector” strike that few could afford – the noble 2018 Silver Krugerrand has finally been released to the masses of appreciative collectors and investors.
Sure, it may have taken half a century to materialize after the first introduction of its golden parent, however – as is very often the case – good things are truly worth waiting for.
Get Yours from Alliance Coin
We are delighted to have received an initial shipment of the brand new South African .999 fine Silver Krugerrands, and invite you to add one (or more!) to your collection at just:
$23. each (tax-exempt) OR
$26. each, inclusive of postage to anywhere in North America
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