Pier 5 Condo

On July 3rd, 1967 the first 1 oz Gold Krugerrand rolled through the presses in the South African Mint. This was not the beginning of the Krugerrand, however- nor were the careful planning meetings of the Chamber of Mines of South Africa (who interestingly enough can trace its roots back to 1889) which lead to its creation.

The Gold Krugerrand history begins in the hills of Witwatersrand, South Africa. The “ridge of white waters” is a series of east/west running ridges that are over 60 miles in length. In 1884 gold was discovered, and the mining camp at Johannesburg has since grown into a thriving metropolis. At the time, Paul Kruger was president of the Transvaal. In his memoirs he noted that General Joubert correctly predicted the gold discovery will “cause our land to be soaked in blood.” The gold discovery led to a huge influx of foreigners looking to make their fortune in gold. Eventually the high number of foreigners and concern for their rights led to conflict. The conflict was multifaceted, with some underlying motivation for the British empire to control this valuable commodity.

The second Boer war started in 1899 with ultimatums from the British demanding equal rights for the uitlanders (foreigners), and Kruger’s response for the British to be out of Transvaal in 48 hours. After three bloody years, the war ended in 1902 and Transvaal was absorbed into the British empire- with some concessions to the Boers.

Politics settled, the march of the Gold Krugerrand carried on. A Gold Krugerrand would be nothing without that heart of precious metal- refined gold bullion. In 1920 the Transvaal Chamber of Mines needed a consolidated refinery to handle all the gold in South Africa. The Rand Refinery was created to meet this need, and has been in continuous operation every since.

A shiny new One Ounce Krugerrand is a product of its history. The obverse side has a portrait of Paul Kruger, painstakingly designed by Otto Shultz. Kruger also lends his name to the coin, along with Witwatersrand, which was shortened to “rand”; which also happens to be the national currency of South Africa. The finishing touch is the delicate Springbok antelope on the reverse- to symbolize South Africa.

In 1967 when Krugerrands were first produced, the United States government prohibited its citizens from owning gold bullion, but allowed ownership of foreign coins. The 1 oz Krugerrand was a brilliant piece of marketing for two reasons. One, it was the first bullion coin to be traded for its gold content, rather than a denomination on the coin (a 1 oz gold Krugerrand is 22 carats, 11 parts gold to 1 part copper- however it does contain one full ounce of gold bullion). As the price of gold fluctuates, so goes the price of Krugerrands. Second, by making the Krugerrand legal tender, it allowed American investors to purchase the coin. This allowed everyday people to buy gold without the need to have it melted and assayed. The South African Krugerrand was declared illegal to import in many Western countries during the 1970s and 1980s due to the policy of apartheid. With South African political reform from 1990 to 1994 and the abolishment of apartheid, one ounce Krugerrands became legal imports to the U.S. Even with the previous prohibitions, Krugerrands are the most popular gold bullion coin- with over forty-six million ounces in circulation. The One Ounce Krugerrand History is peppered with blood, politics, and ingenuity.