Dave Simpson asked: Krugerrands are gold coins that were first minted and issued in 1967, and have been produced every year since. They are legal tender in South Africa but because of far sighted attitudes from their makers they have been imported into many countries without import taxes, duty or VAT. This has made them easily available at good prices over the intrinsic value of the gold they are made from, and therefore an attractive proposition for private gold investors.
Originally, only one size was issued, which contained one full troy ounce (31.1035 grams) of fine gold. These coins were the original Krugerrand, or Kruger, for short. From 1980, three other sizes were introduced, namely a half, quarter, and tenth ounce size. Because of these new additions, the original Krugerrand is sometimes referred to as a “full” or “one ounce” Kruger.
One of the best ways to purchase gold coins such as Krugerrands is on Ebay. Their auctions always prove that point that the value of a coin is only what is buyer is willing to pay for it, and on eBay it gets right down to the real action. Using EBay or sites like www.buycheapgoldcoins.com it is easy to search for the coins you wish to acquire. Just type whatever you want in the search box, or browse using the menus and you will view all the auctions related to the coin.
Of course, its very safe to buy Krugerrands on Ebay as long as you take the proper precautions. There are many ways buyers are protected, but the best way to determine if a dealer or individual are reputable is to look at their feedback score and you can also view the comments previous customers have left for the seller. Beacuse you are buying gold coins I would recommend that you only buy from dealers with 100% feedback, but you have to take everything into consideration. If a seller has a feedback score of less than 100% he still may be a reputable dealer. Look at the total comments left in the upper right hand corner of the auction page.
Krugers are a very attractive proposition for private investors, especially with today’s soaring gold price! The Kruger was originally made available to world bullion dealers at a 3% premium over the prevailing gold price, so that after distribution costs, the coins would be available to investors in quantity at about 4% to 5% over intrinsic gold values, and possibly 10% premium for single pieces. This means that you will generally pay a higher price from a dealer than you will from EBay – and remember you shouldn’t be concerned about the aesthetics of the coin – its value is in the gold it contains, not how it looks!
With today’s rapidly rising gold price and turbulent stock markets, coins such as The Krugerrand are a very safe long term investment for individuals. For example if you had bought a Krugerrand on the first of January 2008 it would have cost you around $846 – the same coin is now worth over $1000 just 6 months later, and predicted to go as high as $1100 by the end of the year – that’s a whopping 30% growth for the year.
Leslie
