Krugerrand value?

Broadstruck · April 19, 2012 11:02PM

I don't do a whole lot with bullion especially foreign and need some help...

If I accept a few raw 1 once krugerrands as trade what should I consider their value

Thanks in advance!

nibanny · April 19, 2012 11:06PM

I love the Krugs, they are the most recognized worldwide, though, they are "just" gold.
In a fair trade with somebody I know, I would value them as spot+2/3%.
I think a B&M would buy under melt.

ricko · April 19, 2012 11:12PM

I would consider their value as spot in a trade.... One Troy ounce of gold, alloyed with copper to make a 22K coin. Spot would be fair. Cheers, RickO

slinc · April 19, 2012 11:30PM

I sold one of these at a B&M awhile back. It was 95% of spot.

jmski52 · April 19, 2012 11:36PM

The spread for Kruggerands changes, just like it does for any bullion coin. In general the premiums are less than for AGEs or Gold Maples, but the spreads are similar.

When I'm interested, I just check a couple bullion dealer listing, like Tulving, Silvertowne, or Apmex to see what the spreads and premiums are doing.

OPA · April 20, 2012 12:01AM

APMEX on 2012 K'rands...buy back is spot +$30 per oz ---- Selling at $70 over spot
Random years...spot +$5 per oz ----- selling $40 over spot & I suspect it's competitive with the other big boys

B&M offering 95% of spot is a rip off.

DrBuster · April 20, 2012 12:12AM

My local guy sells them at melt when he has them.

TheBigB · April 20, 2012 12:20AM

<< APMEX on 2012 K'rands...buy back is spot +$30 per oz ---- Selling at $70 over spot
Random years...spot +$5 per oz ----- selling $40 over spot & I suspect it's competitive with the other big boys

B&M offering 95% of spot is a rip off. >>

Even NTR Metals is paying 98% for clean scrap.

Broadstruck · April 20, 2012 1:29AM

Thanks everyone this really helps!

Weiss · April 20, 2012 1:31AM

I love krands. And I love that they seem to trade at spot. They're a big, big gold coin that was meant to be spent and meant to be valued at their gold value as it fluctuated. That's just plain cool.

PerryHall · April 20, 2012 2:29AM

<< I love krands. And I love that they seem to trade at spot. They're a big, big gold coin that was meant to be spent and meant to be valued at their gold value as it fluctuated. That's just plain cool. >>

They were NOT meant to be spent.

cjmezz · April 20, 2012 2:32AM

my local B&M pays 95% for them

mkman123 · April 20, 2012 2:52AM

melt would be a fair price

PerryHall · April 20, 2012 3:17AM

K-Rands carried a stigma due to apartheid and were banned for importation into this country for that reason. When apartheid was eliminated and the whites lost political power in South Africa, K-Rands were once again allowed to be imported but the stigma remains even to this day.

Weiss · April 20, 2012 4:23AM

<< 

<< I love krands. And I love that they seem to trade at spot. They're a big, big gold coin that was meant to be spent and meant to be valued at their gold value as it fluctuated. That's just plain cool. >>

They were NOT meant to be spent. >>

The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. Unusually for bullion coins, the Krugerrand was intended to circulate as currency. To this end, it was minted in a more durable copper-gold alloy.

http://en.wikipedia.org/wiki/Krugerrand

Intended for use as a common coin, the Krugerrand was minted using 22 carat gold alloy to make it stand up to the rigors of daily use.

http://www.gold-traders.co.uk/krugerrand-gold-coins.asp

tneig · April 20, 2012 4:50AM

Thanks.
Very helpful to me as I had no previous basis, except what I see on Apmex.

Was looking in my local coin shop, that was asking %1.03 of spot.
Did not realize it was alloyed at 22k either.

AUandAG · April 20, 2012 5:35AM

Be sure that you weigh them. There are fakes out there. Proper weight is 33.93grams, 32.6mm diameter
and 2.84mm thick, for the one ounce Krugerrand.

bob

PerryHall · April 20, 2012 6:09AM

<< 

<< 

<< I love krands. And I love that they seem to trade at spot. They're a big, big gold coin that was meant to be spent and meant to be valued at their gold value as it fluctuated. That's just plain cool. >>

They were NOT meant to be spent. >>

The Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. Unusually for bullion coins, the Krugerrand was intended to circulate as currency. To this end, it was minted in a more durable copper-gold alloy.

http://en.wikipedia.org/wiki/Krugerrand

Intended for use as a common coin, the Krugerrand was minted using 22 carat gold alloy to make it stand up to the rigors of daily use.

http://www.gold-traders.co.uk/krugerrand-gold-coins.asp >>

I don't buy it. They were made with exactly 1 Troy ounce of gold to facilitate the selling and hoarding of gold as bullion which was one of the major products produced in South Africa. I've never seen a K-Rand that was in circulated condition from the rigors of daily use.

TheBigB · April 20, 2012 6:20AM

<< Intended for use as a common coin, the Krugerrand was minted using 22 carat gold alloy to make it stand up to the rigors of daily use. >>

No mystery here, the prior gold sovereigns, ponds, and rands produced in the county were all 22k.

They merely introduced a product in a composition that people were already accustomed to.

jdimmick · April 20, 2012 7:38AM

Typically , we buy em at 3% back of spot, and sell for spot. Although I rarely sell K-rands locally, folks dont want em, they want eagles. But the market changes slightly.

APMEX is currently paying spot + 5.00, but the national (and with in driving distance)guy I deal with is paying spot. I bought 19 yesterday and could have sold them for spot plus 5.oo to apmex, but that would have taken 3 weeks to turn the $, whereas I sold them at spot today, and transaction is completed. Its not worth 5.00 extra per oz to tie up 31k in cash for 3 weeks.

Now , if I get in say american eagles in quantity, apmex is ususally 35-44 over spot whereas the other company I deal with is spot + 10 buck, then its worthe the extra $ to wait out 3 weeks for payment.

OPA · April 20, 2012 8:04AM

<< 

<< Intended for use as a common coin, the Krugerrand was minted using 22 carat gold alloy to make it stand up to the rigors of daily use. >>

No mystery here, the prior gold sovereigns, ponds, and rands produced in the county were all 22k.

They merely introduced a product in a composition that people were already accustomed to. >>

They all contain 1 toz of .999 gold. That's why they weigh almost 34 grams. (33.93)

nibanny · April 20, 2012 9:03AM

I don't think they were made to be spent.
If I recall correctly (Wikipedia would then be wrong), South Africa minted gold in a form of a coin (legal tender) because the US law forbade US citizens to own gold bars but allow them to own foreign gold coins.
I may be wrong.

edited to add: Wikipedia Italy says it the way I remember but adds that they were anyway banished after Western countries issued sanctions because of the apartheid.

Weiss · April 20, 2012 12:06PM

It was intended to circulate as currency therefore it was minted in a more durable gold alloy, Unlike most other bullion coins, Krugerrands have no face value, its legal tender value is the bullion value of its metal at the current market price of gold. The Krugerrand was the first bullion coin to have this kind of legal tender value. It was also the first gold coin to contain precisely one ounce of fine gold.
http://www.coin-rare.com/krugerrand.aspx

The krugerrand is a South African gold bullion coin that was first produced in 1967 and is a legal tender gold coin, meaning that it can be used as currency to pay for goods or services.

Because the value of gold can fluctuate quite markedly the krugerrand was not issued with a face value, rather it's purchasing power as a legal tender coin is based on the market value of gold at any given time. Because gold prices change constantly, krugerrand prices change constantly also.

This is to address the problem that otherwise the coin could sometimes have a face value in excess of it's gold content, and other times it may have a value worth far less than it's gold content value.
http://www.krugerrands.org.uk/

PerryHall · April 20, 2012 10:41PM

<< It was intended to circulate as currency therefore it was minted in a more durable gold alloy, Unlike most other bullion coins, Krugerrands have no face value, its legal tender value is the bullion value of its metal at the current market price of gold. The Krugerrand was the first bullion coin to have this kind of legal tender value. It was also the first gold coin to contain precisely one ounce of fine gold.
http://www.coin-rare.com/krugerrand.aspx

The krugerrand is a South African gold bullion coin that was first produced in 1967 and is a legal tender gold coin, meaning that it can be used as currency to pay for goods or services.

Because the value of gold can fluctuate quite markedly the krugerrand was not issued with a face value, rather it's purchasing power as a legal tender coin is based on the market value of gold at any given time. Because gold prices change constantly, krugerrand prices change constantly also.

This is to address the problem that otherwise the coin could sometimes have a face value in excess of it's gold content, and other times it may have a value worth far less than it's gold content value.
http://www.krugerrands.org.uk/ >>

Sounds like you are describing the AGE's except they do have a face value in addition to being a legal tender coin. In fact they have the same size, weight, and fineness as the Krugger Rand that they intended to replace.

slinc · April 20, 2012 10:58PM

<< APMEX on 2012 K'rands...buy back is spot +$30 per oz ---- Selling at $70 over spot
Random years...spot +$5 per oz ----- selling $40 over spot & I suspect it's competitive with the other big boys

B&M offering 95% of spot is a rip off. >>

I know 95% of spot isn't the best price, But there is something to be said for cash in hand in a few minutes.

KUCH · April 20, 2012 10:59PM

<< APMEX on 2012 K'rands...buy back is spot +$30 per oz ---- Selling at $70 over spot
Random years...spot +$5 per oz ----- selling $40 over spot & I suspect it's competitive with the other big boys

B&M offering 95% of spot is a rip off. >>

I never understood why current year 2012 demands a higher premium than random years.

can anyone explain?

nibanny · April 20, 2012 11:04PM

<< 

<< APMEX on 2012 K'rands...buy back is spot +$30 per oz ---- Selling at $70 over spot
Random years...spot +$5 per oz ----- selling $40 over spot & I suspect it's competitive with the other big boys

B&M offering 95% of spot is a rip off. >>

I never understood why current year 2012 demands a higher premium than random years.

can anyone explain? >>

Because every kid wants the new stuff!

jdimmick · April 20, 2012 11:29PM

although we buy at 3% back, 5% back is not a rip off if someone needs to sell quickly. if the person selling needs money that quick, then he has to take what he can get quickly, if not why doesnt he wait and sell to a place that pays tighter like apmex.

Ill tell you why:

1st as I mentioned, seller wants the money right then and now!!
2nd, in some cases they dont want to have to report the sale!!

One other thing, I dont know about your area, but Ill bet if you had 15-20 krands and needed to sell em that day, there are very few places that could handle the transaction. There are three coin shops here locally, two could not buy em without making arrangments to get payment from their buyer first before actually buying em.

I have had this situation many times, where people have come in wanting spot on various gold bullion, I am usually a few points behind, I always tell them if they want spot or even over, to take them to apmex or a few other national dealers. They dont want to wait , they want it sell it then and now.

Weiss · April 21, 2012 12:31AM

<< 

Sounds like you are describing the AGE's except they do have a face value in addition to being a legal tender coin. In fact they have the same size, weight, and fineness as the Krugger Rand that they intended to replace. >>

No, that's the exact opposite of the Krugerrand. The legal tender face value on the gold eagle is $50--a ludicrously small amount relative to their gold value from the first day they were minted until this very moment. They were never intended to be spent or valued anywhere near their legal tender dollar value. That's why it's called "NCLT", or Non-Circulating Legal Tender. Nobody would ever dream of spending them for $50.

If gold eagles were legal tender but had no face value, and you backed up the truck at $400 an ounce, spending them at $1650 would make sense and would offer tremendous advantages in certain situations.

Krugerrands, on the other hand, were designed specifically to be legal tender and to have no set face value, so that their currency value and purchasing power would always equal their gold value. It's an absolutely brilliant concept.

Krugerrands may not be spent often, but that doesn't change the fact that are legal tender and were designed to circulate and to have a value equal to the value of an ounce of gold.

Baley · April 23, 2012 2:12PM

The legal tender face value on the gold eagle is $50--a ludicrously small amount relative to their gold value from the first day they were minted until this very moment. They were never intended to be spent or valued anywhere near their legal tender dollar value. That's why it's called "NCLT", or Non-Circulating Legal Tender.

This is to put a "floor" under the value of the coin in terms of dollars.

Nobody would ever dream of spending them for $50.

Unless, say, someone someday figures out how to use some kind of solar or wave powered device to economically mine gold from sea water... or develops a robot miner that flies to an asteroid and shoots gold bricks back to earth... or someone figures out a way to mine so deep that they hit a mother lode... or the aliens finally make contact and they bring limitless amounts of gold to buy our quaint earth-made crafts.. or...

Krugerrand value?

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