Krugerrand Value: What Determines the Price of the Gold Coin
The Krugerrand value depends almost entirely on the gold price, because every 1-ounce coin contains exactly one troy ounce of gold. On top of that comes a premium, which is higher when you buy than when you sell. This page shows how to work out the value and what to look out for when buying and selling.
What is a Krugerrand?
The Krugerrand is a gold coin from South Africa. It was first minted on 3 July 1967 to market South African gold internationally. It is produced by Rand Refinery and the South African Mint. The name ‘Krugerrand’ is a registered trademark of Rand Refinery.
From the outset, the coin was intended as a bullion coin, not a collector’s item. Its price is therefore based on its gold content, not on rarity or condition. This applies to common years. Special proof issues can fetch collector prices.
Why does a Krugerrand weigh more than an ounce?
A Krugerrand is not made of pure gold but of an alloy with 916.7 parts per thousand gold. That equals 22 karat. The rest is copper. So that the coin still contains exactly one troy ounce of gold, it is heavier: the gross weight is 33.93 g, of which 31.1035 g is fine gold.
The copper makes the coin harder and more resistant to scratches. It also gives it the slightly reddish colour by which the Krugerrand is easy to recognise. The alloy does not change the gold value. Only the fine gold content matters.
How to work out the Krugerrand value
The material value of a 1-ounce coin equals the gold price for one troy ounce. If, for example, gold is quoted at €3,600 per ounce, the material value of a Krugerrand is also €3,600. This figure is only an example. Use the current price.
A dealer’s selling price is higher. The premium covers minting, transport, insurance and the dealer’s margin. When buying back, the dealer usually pays somewhat less than the selling price, often close to the material value. The difference between the two prices is the spread.
Always compare both prices when buying and selling. An offer with a low selling price but a weak buy-back price can end up costing more than a balanced offer.
Is the Krugerrand VAT-free in Germany?
Under § 25c UStG (German VAT Act), gold coins count as investment gold if they contain at least 900 parts per thousand gold, were minted after 1800, are or were legal tender in their country of origin and are normally sold at a price no more than 80% above their gold value. Investment gold is exempt from VAT in Germany.
At 916.7 parts per thousand, the Krugerrand comfortably meets the fineness threshold. A later sale from private assets is subject to the German rules on private sales transactions. You can read more on the page about tax on selling gold.
Checking the authenticity of a Krugerrand
Because the Krugerrand is so widespread, it is also counterfeited. The simplest check is to compare it with the manufacturer’s specifications: 33.93 g weight, 32.77 mm diameter and 2.84 mm thickness. A precision scale and a calliper are enough for this.
If any value differs, do not buy the coin, or have it checked by a specialist dealer. Good fakes sometimes match weight and dimensions. Then only devices that examine the inside of the coin can help. You can read more on the page about testing gold.
Selling a Krugerrand: what to look out for
Before selling, get several offers and ask which gold price the buying price is based on. Reputable dealers state their buy-back price openly, often directly on their website. In Germany, if you are paid €2,000 or more in cash, the dealer must identify you under the Money Laundering Act (GwG).
Scratches and light signs of wear do not reduce the gold value. Heavy damage can, however, lead to deductions, because the dealer is then more likely to have the coin melted down. Keep your invoices. They prove to the German tax office that the one-year holding period has passed.
