South Africa controlled 62% of global gold production and nearly 80% if we take out the Communist bloc which was hoarding its gold at the time in 1970. Such a prominent position put it in prime position to anticipate and dictate the future of the gold market. Anticipating an end to the Gold Standard, the Rand Refinery (the world’s largest gold refiner) decided it would be a good idea to manufacture modern bullion coins for public consumption. The thinking was that during the gold standard, private ownership of gold was forbidden in many countries and territories so if the Gold Standard would be abolished (as it was in 1971), then a slew of demand could be met in the form of coins. So in 1968 the first modern 1 troy ounce gold bullion coins were manufactured, and in 1970 started going into general circulation. During the 70s, South Africa pretty much had a monopoly on producing gold coins and were the only ones making them in the uniform 1 ounce unit that we recognize today. Eventually other countries saw the success of this ordeal, and starting minting their own coins.

Today the role of South Africa in gold production is much less prominent, with only 8% of yearly mining production attributable to them. Still, the Krugerrand holds a special place in gold investors hearts for its history and trailblazing leadership. It’s still the most common modern gold coin in circulation, constituting roughly 1/5 of all the coins produced since 1970.

The Krugerrand derives its name from Paul Kruger, the President of the South African Republic from 1883 to 1902. From 1970 to 1979 only the 1 oz coin was made, but since 1980 3 other sizes (1/2 oz, 1/4 oz, and 1/10 oz) have been introduced representing 20% of the near 60 million Krugerrand’s in existence today. Krugerrand gold bullion coins are all 22K and have major brand recognition thanks in part to the springbuck (a type of antelope) which is on the back of every coin.