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The One Ounce Gold Krugerrand history begins not on July 3rd, 1967 when it was first struck- not even in planning and strategy meetings held by the Chamber of Mines of South Africa (established in 1889 as a voluntary private sector organization to represent the interests of mining employers) who were its architects.

The Krugerrand history begins in the hills of Witwatersrand, South Africa. The “ridge of white waters” is a series of east/west running ridges that are over 60 miles in length. In 1884 gold was discovered, and the mining camp at Johannesburg has since grown into a thriving metropolis. At the time, Paul Kruger was president of the Transvaal. In his memoirs he noted that General Joubert correctly predicted the gold discovery will “cause our land to be soaked in blood.” The gold discovery led to a huge influx of foreigners looking to make their fortune in gold. Eventually the high number of foreigners and concern for their rights led to conflict. The conflict was multifaceted, with some underlying motivation for the British empire to control this valuable commodity.

The second Boer war started in 1899 with ultimatums from the British demanding equal rights for the uitlanders (foreigners), and Kruger’s response for the British to be out of Transvaal in 48 hours. After three bloody years, the war ended in 1902 and Transvaal was absorbed into the British empire- with some concessions to the Boers.

Now that the drums of war were silent, the next milestone in the timeline of Krugerrand history was the creation of the of a centralized refinery. The Transvaal Chamber of Mines created the Rand Refinery in 1920 with the express goal to refine all the gold mined in Witwatersrand. To this day, the blank every South African Gold Krugerrand is stamped on comes from the Rand refinery.

Now to assemble the essential elements of a 1 Ounce Gold Krugerrand. First on the reverse side of the coin, we have a Springbok antelope, designed by Coert Steynberg. The antelope symbolizes South Africa. Next the Krugerrand honors the 5th President of the South African Republic, Paul Kruger with a picture on the obverse. Finally, the name itself is derived by adding Kruger’s name to the national currency- the Rand. And where did the Rand come from? Witwatersrand of course.

In 1967 when Krugerrands were first produced, the United States government prohibited its citizens from owning gold bullion, but allowed ownership of foreign coins. The 1 oz Krugerrand was a brilliant piece of marketing for two reasons. One, it was the first bullion coin to be traded for its gold content, rather than a denomination on the coin (a 1 oz gold Krugerrand is 22 carats, 11 parts gold to 1 part copper- however it does contain one full ounce of gold bullion). As the price of gold fluctuates, so goes the price of Krugerrands. Second, by making the Krugerrand legal tender, it allowed American investors to purchase the coin. This allowed everyday people to buy gold without the need to have it melted and assayed. The South African Krugerrand was declared illegal to import in many Western countries during the 1970s and 1980s due to the policy of apartheid. With South African political reform from 1990 to 1994 and the abolishment of apartheid, one ounce Krugerrands became legal imports to the U.S. Even with the previous prohibitions, Krugerrands are the most popular gold bullion coin- with over forty-six million ounces in circulation. The One Ounce Krugerrand History is peppered with blood, politics, and ingenuity.

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