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Close
Annual output from South African gold mines in the 1960s accounted for about 70% of the world's total production. But the end of the gold standard around the world, as well as the renewed dominance of private property in countries such as the United States (which began in 1974), left South Africa's gold mining and refining industries to seek means of survival in new market conditions. The government decided to focus on the production of investment gold coins, which could attract both collectors and investors. The very first Krugerrands* as proof and proof-like (similar to proof) were minted in 1967. These were the first coins to contain little more than one troy ounce of 22-karat gold. This means that the Krugerrand has a purity of 91.67%. Another component in the alloy is copper. This component not only gives the Krugerrand its distinctive orange color, but also makes the coin stronger and more scratch-resistant. It is very important that the characteristic of the coin is that it has the status of legal tender, that is, it is made not only for international sales, but also for circulation in the country. There is no denomination on the coin, meaning that the Krugerrand is valued at the spot rate of gold at the time the act of buying and selling occurs. Mass production of the one ounce coin began in 1970. In other weight categories (1/2, 1/4, 1/10 ounce) coins have been minted since 1980. The name of the coin is a combination of the word "rand" (the currency of South Africa) and "Kruger", the surname of the prominent military and political leader of the old South African republic, Paul Kruger. His stately, bearded profile is depicted on the obverse of the coin. The reverse depicts a springbok, which is a small South African antelope. The springbok is as much a symbol of South Africa as the bison is a symbol of the United States.