The 22-Karat Advantage: Why the Krugerrand's Alloy Matters

Key Takeaways

•Krugerrand's .9167 purity (22-karat) includes copper alloy for durability

•Higher purity doesn't mean higher gold content vs other 1 oz coins

•The copper alloy makes Krugerrands more resistant to scratches and wear

•22-karat coins are preferred by investors who handle their coins

•The Krugerrand and Gold Eagle use the same proven alloy composition

Understanding .9167 Fine Purity

The Gold Krugerrand is minted from .9167 fine gold, also known as 22-karat or crown gold purity. This means the coin is 91.67% pure gold alloyed with 8.33% copper.

This purity level was chosen deliberately when the Krugerrand was designed in 1967. The copper alloy provides significant practical benefits that pure gold cannot offer.

Understanding what this purity means (and doesn't mean) helps you evaluate whether the Krugerrand's composition is right for your investment goals.

Purity vs Gold Content

A common misconception is that higher purity means more gold. In fact, all major 1 oz gold bullion coins contain exactly 1 troy ounce of gold regardless of purity.

The Krugerrand (.9167) and Maple Leaf (.9999) both contain 1 oz of gold. The Krugerrand simply weighs more (1.0909 oz total) because its copper adds weight. The gold content and gold value are identical.

This distinction matters: you're not getting 'less gold' with the Krugerrand. You're getting the same gold content with added durability from the copper alloy.

Why Durability Matters to Some Investors

Pure 24-karat gold is soft and scratches easily. Coins like the Maple Leaf require careful handling to avoid damage. The Krugerrand's copper alloy makes it more resistant to wear.

For investors who want to handle their coins, display them, or simply not worry about minor contact, the 22-karat alloy provides practical advantages.

The Trade-off: Purity vs Durability

The Krugerrand's .9167 purity means it's more durable than pure gold coins. This is an advantage for handling and storage, not a disadvantage.

If you prioritize maximum purity over durability, the Canadian Maple Leaf offers .9999 fine gold. If you want the durability of 22-karat gold with U.S. origin, the Gold Eagle uses the same alloy as the Krugerrand.

The distinctive orange-gold color of Krugerrands comes from their copper content. Many investors find this color appealing and consider it a mark of authenticity.

Making the Purity Decision

For most investors, the purity difference between Krugerrand and Maple Leaf is academic. Both are excellent gold bullion coins with similar premiums and liquidity.

Choose the Krugerrand if: you value durability, prefer the original bullion coin, want potentially lower premiums, or appreciate the distinctive color.

Choose a .9999 coin if: you want maximum purity conceptually, prefer pure gold without alloy metals, or plan to sell in markets that favor 24-karat gold.

Questions & Answers

Common questions about Gold Krugerrand coins answered by our editorial team.

Why is the Krugerrand 22-karat instead of 24-karat?

The Krugerrand's 22-karat (.9167 fine) composition includes copper alloy for durability. Pure 24-karat gold is soft and scratches easily. The alloy makes Krugerrands more resistant to wear and handling damage while containing exactly 1 troy ounce of pure gold.

Is 22-karat gold less valuable than 24-karat gold?

No. Spot value is based on gold content, not purity. A 1 oz Krugerrand (.9167) and 1 oz Maple Leaf (.9999) both contain exactly 1 troy ounce of gold and have the same gold value. The Krugerrand simply weighs more because of its copper content.

Does the alloy affect resale value?

No. Krugerrands are among the most liquid gold coins despite their 22-karat composition. Their global recognition ensures strong demand. The durability provided by the alloy is actually valued by many investors and dealers.