Wondering how much is a Krugerrand worth? While the value of a Krugerrand changes daily with the shifting of underlying commodities, you can determine the value of your Krugerrand if you know a few basic facts.
What is a Krugerrand?
A Krugerrand is a gold coin, minted in South Africa. It is imprinted with a picture of an early Republic of South Africa president, Paul Kruger. Krugerrand coins contain exactly one ounce of gold, although the actual weight of the coin is a bit more, as it also contains copper. A Krugerrand may fall into one of three categories: circulated, un-circulated or a proof Krugerrand.
How to determine the base value of a Krugerrand.
While the value of a Krugerrand may shift a bit depending on factors specific to the coin itself, its base value is tied to the value of gold. You can typically get a good idea of what a Krugerrand is worth by looking up the value of one ounce of gold, or do a Web search for "Gold Spot Price." However, the particulars of the Krugerrand itself can shift the value of the coin.
Krugerrands come with premiums.
The value of a Krugerrand is only partially tied to commodities. Most sellers also charge premiums designed to increase the profit they make selling the coins. If you're buying a Krugerrand, expect to pay not only the base value of the gold content, but also premiums for shipping, mintage fees and handling. When you're shopping for a Krugerrand, beware of hidden charges. One example is a dealer volume discount that might require you to multiply the price in order to get the value for a single or a few coins.
Krugerrands in different sizes.
In 1980, Krugerrands at a fraction of the weight of a traditional coin were released. These Krugerrands come in ½ ounce, ¼ ounce or 1/10 ounce. Fractal Krugerrands are still valued based on the gold weight in their composition; for example, a ½-ounce Krugerrand would be worth approximately half of a one-ounce Krugerrand's value. However, these fractal Krugerrands are still subject to the same shipping and handling fees as the full Krugerrands, so they come with a higher per-ounce price. From a fees and premiums standpoint, it's cheaper to invest in full Krugerrands, so keep this in mind when you're shopping.
Proof Krugerrands or un-circulated coins.
Two types of Krugerrands are worth more than the simple weight of the gold they contain: proof Krugerrands and un-circulated coins. Proof Krugerrands are produced in limited quantities, and they typically have a numbered certificate of authenticity. Proofs receive special handling, including double-stamping for clear embossing, special frosted finishes or other details that set it apart. Un-circulated Krugerrands are valued higher than their circulated counterparts for similar reasons.