The Different Features of the Krugerrand and the Gold Eagle Coin
When it comes to investing in gold, there are a few different options. You can buy gold bullion, gold bars, or gold coins. But which one is the best option for you?
In this article, we will compare the Krugerrand and the Gold Eagle coins. These are both made of gold, but they have some distinct features. The Krugerrand is heavier and has a higher purity than the Gold Eagle coin. The Gold Eagle coin is more affordable, making it a popular choice for investors.
So which coin should you own? Let’s take a closer look at both of them and see what differences we can find.
The History of the Krugerrand
Krugerrands are South African gold coins that were first minted in 1967. The name comes from Paul Kruger, the former President of the South African Republic, and the rand, which is the currency of South Africa.
The coin was designed to be used as a form of legal tender, but it quickly became popular with investors and collectors due to its high gold content. Krugerrands were initially introduced as a way to invest in gold without dealing with the restrictions placed on gold ownership by other countries.
The coin quickly became popular; by 1980, they accounted for 90% of the gold coin market. Today, the Krugerrand is one of the world’s most widely traded gold coins and remains an important part of South Africa’s economy. Still a popular choice for investors, and they are also widely collected as a numismatic item.
The Weight and Purity of the Krugerrand
Since its inception, the coin has been manufactured with 22-karat gold. The coin’s weight is one troy ounce (31.103 grams), making it durable and resistant to scratching and marring. As a result, it remains one of the most popular gold coins for investors and collectors alike.
The Krugerrand is also prized for its purity, containing 91.67% gold (22 karats). This high level of purity makes it an excellent choice for investment purposes. In addition, the Krugerrand is easy to trade and transport due to its standard size and weight.
For these reasons, the Krugerrand is one of the most popular bullions in the world. As of 2020, the price of the Krugerrand is $1706.82 US dollars.
The Design of the Krugerrand
Introduced in 1967, the Krugerrand was the first coin explicitly minted for investment purposes. The Krugerrand is constructed from 22-karat gold, an alloy of 91.67% gold and 8.33% copper. This combination gives the coin a more orange appearance than 24-karat gold. The copper also makes the coin more durable and less susceptible to scratching and other wear and tear.
The Krugerrand weighs 1.0909 troy ounces and measures 32.6 mm in diameter. The front of the coin features a portrait of Paul Kruger, while the back displays a springbok antelope, one of South Africa’s national symbols. With its distinctive design and valuable metal content, the Krugerrand remains a popular choice for investors and collectors alike.
The Gold Eagle Coin
The Gold Eagle coin is one of the most popular in the United States, and for a good reason. Authorized by Congress in 1985, the Gold Eagle was designed to provide investors with a convenient way to invest in gold. The coin is minted from 22-karat gold, with each coin containing a minimum of 1 ounce of gold. In addition, the Gold Eagle features a unique design that includes an image of a bald eagle in flight.
The Gold Eagle coin is also popular because it is backed by the full faith and credit of the United States government. This means the coin has intrinsic value and can be used as legal tender. In addition, the Gold Eagle coin is IRA eligible, which makes it an attractive investment for those looking to diversify their portfolio.
If you are considering investing in gold, the Gold Eagle coin is definitely worth looking at. With its unique design, government backing, and IRA eligibility, the Gold Eagle coin offers investors many advantages.
The Weight and Purity of the Gold Eagle Coin
The Gold Eagle coin is one of the most popular bullion coins in the United States. Each coin contains a full troy ounce of gold, equal to 31.1034768 grams. The purity of the gold is also guaranteed by the U.S. government, with each coin containing at least 22 karats of gold (92% pure). The remaining 8% of the coin’s weight is made up of silver and copper, which help to give the coin its durability.
The Gold Eagle coin was first introduced in 1986 and has been produced annually ever since. It remains a popular choice for investors and collectors due to its high gold content and guaranteed purity.
The Design of the Gold Eagle Coin
The Gold Eagle coin is one of the most popular minted by the United States Mint. Authorized by Congress in 1985, the Gold Eagle was first released in 1986 with four denominations:
- 1 oz
- 1/2 oz
- 1/4 oz
- 1/10 oz
The coin’s front features a portrait of Liberty designed by Augustus Saint-Gaudens, while the back shows a male eagle holding an olive branch gliding above a nest with a female eagle and eaglets. The coin is composed of 22 karat gold (.9167 fine), with the remainder being silver and copper.
The Gold Eagle coin is minted in two finishes:
- Brilliant Uncirculated – The brilliant uncirculated coins are intended for general circulation.
- Proof – Proof coins are collector’s items minted using a specially treated die, resulting in a higher quality finish.
Both types are Legal tender with a face value of $50. The size, weight, and composition of the Gold Eagle coin are based on the original $10 Eagle coin minted from 1795-1933.
That coin was designed by Robert Scot and featured an eagle with outstretched wings on its obverse Lady Liberty facing to the right. Like the Gold Eagle, that coin was also composed of 90% gold.
However, due to rising gold prices and economic conditions during the Great Depression, President Franklin Roosevelt ordered Executive Order 6102 to recall all gold coins to be melted down in 1933. Thus, the Gold Eagle coin is not only famous for its design but also its history.
Which Coin is Better for You
You need to be aware of two primary features of the Krugerrand and the Gold Eagle coin. The first is that both are made of gold. The second is that the Krugerrand is from South Africa, while the Gold Eagle is from the United States.
Here are a few other facts about each coin that you may find helpful in deciding which one is better for you:
- The Krugerrand was first minted in 1967 and was designed to be used as currency.
- The Gold Eagle was first minted in 1986 and was designed to be used as an investment vehicle.
- The Krugerrand is 22 karats, while the Gold Eagle is 24 karats.
- The Krugerrand contains one ounce of gold, while the Gold Eagle contains 1.09 ounces of gold.
When it comes to purity, the Gold Eagle is the better choice. The Krugerrand is the way to go if you’re looking for a coin to use as currency. However, if you’re looking to invest in gold, the Gold Eagle is a better option because it contains more gold. Whatever your purpose, both the Krugerrand and Gold Eagle make excellent choices.
In Conclusion
If you are looking to invest in gold, it is important to understand the different features of each type of coin.
The Krugerrand has a higher purity than the Gold Eagle and is also more affordable. However, the Gold Eagle is backed by the United States government, which may give some investors peace of mind. Ultimately, the choice between these two comes from personal preference and investment goals. Have you decided which type of gold coin is best for you?