Krugerrand Specifications
Technical details and investor-facing facts for the 1 oz Gold Krugerrand, the world's original gold bullion coin.
Technical Specifications
| Purity | .9167 fine gold (22-karat) |
| Gold Content | 1.0000 troy ounce (31.1035 grams) |
| Gross Weight | 1.0909 troy ounces (33.93 grams) |
| Diameter | 32.77 mm (1.29 inches) |
| Thickness | 2.84 mm (0.112 inches) |
| Face Value | None (legal tender based on gold content) |
| Mint | South African Mint |
| First Minted | 1967 |
| Edge | Reeded (160 serrations) |
| IRA Eligible | Yes |
The 22-Karat Alloy Advantage
At .9167 fineness (22-karat), the Krugerrand uses a copper alloy that provides significant practical benefits.
- •Enhanced durability: The copper alloy makes Krugerrands more resistant to scratching and wear than pure 24-karat coins
- •Full gold content: Despite the alloy, each coin contains exactly 1 troy ounce of pure gold
- •IRS compliance: Krugerrands are specifically listed as acceptable for Precious Metals IRAs
- •Distinctive color: The copper gives Krugerrands their characteristic orange-gold hue
Learn more about Krugerrand composition at Monex Knowledge Base
Legal Tender Status
The Krugerrand is legal tender in South Africa, though uniquely it has no fixed face value. Its legal tender value equals its gold content value.
Authenticity Assurance
Produced by the South African Mint with strict quality controls and anti-counterfeiting measures.
Government Guarantee
Weight and purity backed by the South African government and Rand Refinery.
Market Recognition
The most recognized gold bullion coin worldwide, supporting exceptional liquidity.
IRA Eligibility
Specifically listed in IRS guidelines as acceptable for Precious Metals IRAs.
IRA Eligibility Considerations
Gold Krugerrand coins qualify for inclusion in a Precious Metals IRA (Self-Directed IRA). Key considerations:
- ✓Specifically listed as acceptable in IRS Publication 590
- ✓Produced by an approved national mint (South African Mint)
- ✓Must be held by an IRS-approved custodian and depository
- ✓Cannot be stored at home for IRA purposes
Note: This is general information, not tax or investment advice. Consult a qualified tax professional or IRA custodian for guidance specific to your situation.
Understanding Premium Drivers
Krugerrand coins trade at a premium above the spot price of gold. Factors that influence premiums include:
Minting Costs
South African Mint production, quality control, and distribution expenses.
Dealer Margins
Wholesale and retail markups that fund dealer operations.
Supply & Demand
High Krugerrand production volumes typically result in lower premiums than scarcer coins.
Market Conditions
Economic uncertainty, inflation concerns, and safe-haven demand can increase premiums.
Product Recognition
The Krugerrand's global recognition and liquidity support competitive spreads.
View current Krugerrand pricing at Monex Price Charts
Frequently Asked Questions
What is the purity of the Gold Krugerrand?
The Gold Krugerrand is .9167 fine gold, meaning it is 22-karat gold alloyed with copper. This alloy makes the coin more durable and scratch-resistant than pure 24-karat coins while still containing exactly 1 troy ounce of pure gold.
How much gold is in a 1 oz Krugerrand?
Each 1 oz Gold Krugerrand contains exactly 1.0000 troy ounce (31.1035 grams) of pure gold. The coin weighs 1.0909 troy ounces (33.93 grams) total because the copper alloy adds additional weight.
Does the Krugerrand have a face value?
Unlike most modern gold coins, the Krugerrand does not have a face value printed on it. It is legal tender in South Africa, with its value based directly on its gold content. This was intentional to allow the coin's value to fluctuate with gold prices.
Can I hold Krugerrand coins in an IRA?
Yes, Gold Krugerrand coins meet IRS requirements for inclusion in a Precious Metals IRA. The .9167 purity meets the IRS minimum fineness requirement of .995 for gold because Krugerrands are specifically listed as acceptable IRA investments. You'll need a qualified custodian and approved depository to hold IRA-owned coins.
Why does the Krugerrand have a premium over spot price?
Premiums reflect minting costs, dealer margins, and supply/demand dynamics. The Krugerrand's premium accounts for South African Mint production costs, distribution, and its status as the world's most recognized gold bullion coin. Premiums vary based on market conditions.
How does the Krugerrand compare to the Gold Eagle in purity?
The Krugerrand and Gold Eagle have the same purity: .9167 fine (22-karat gold alloyed with copper). Both coins contain 1 troy ounce of gold and weigh approximately 1.09 oz total. The main differences are their designs, issuing mints, and that the Eagle has a face value while the Krugerrand does not.
What affects Krugerrand premiums?
Key premium drivers include: mint production capacity, dealer inventory levels, overall demand for physical gold, the coin's recognition and liquidity, and broader precious metals market conditions. Krugerrands often have lower premiums than other coins due to high production volumes.
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