The Krugerrand value is marked by its weight in gold and basically has a 91.7 percent gold purity factor, with its remaining content being copper. The Krugerrand was created in 1964 as a legal tender bullion gold coin and was thought to be a viable means for the general public to have private ownership of gold bullion. Named after Paul Kruger (South Africa’s first Boer President) and the Rand (South Africa’s currency); the South African Mint initially produced the one ounce gold coins in 1967. The coin was minted on the basis that the Krugerrand value would be derived solely from the current and fluctuating price of gold, as opposed to the Rand value system. Perhaps because of this unique concept, the marketing of this coin (since its inception) has been phenomenal, with over 50 million ounces sold. In fact, by 1980, the one ounce coin held an 89% share of the world’s gold bullion coin industry.
Buoyed by the success of the one ounce coin and the increasing Krugerrand value, the South African Mint started producing fractional Krugerrands, in one-half ounce, one-fourth ounce and one-tenth ounce denominations. This idea was implemented from the belief that fractional coins would make the coins more affordable to the masses and more easily bartered in the public arena. Today, the Krugerrand value is still growing and increases daily with the price of gold. Being easily portable and a great investment are also factors that play a role in the Krugerrand being the most widely held gold bullion coin in the world.