The Krugerrand is a gold coin first produced by South Africa in 1967 to help market South African gold. Today the Krugerrand accounts for around 90% of the world gold coin market. The Krugerrand value is primarily based on its gold content and is a popular way to invest in gold. Its value is also based on a premium based on factors such as its condition (whether the coin is in mint condition or has been in circulation) and whether it is part of a special release such as a proof coin.
However, the principal value of the coin is in its gold content. The 1oz version of the coin is guaranteed to contain one ounce of gold (although it is slightly heavier due to copper alloy that is added during manufacturing) and there are also half, quarter and tenth of an ounce versions of the coin. The value of the coin is primarily based on the spot value of gold on the world market plus a premium. The premium attached to the coin depends on shipping, handling, insurance and and mintage fees and also whether the coin is a special issue or in good condition. The Krugerrand is a popular way to invest in gold, the price of which has soared in recent years due to world financial instability.