Krugerrand
Definition
The Krugerrand is a South African gold bullion coin struck in 22-karat gold (.9167 fine). Each one-ounce coin contains one troy ounce of pure gold, and it was the first modern bullion coin made for private investors.
First minted in 1967, the Krugerrand introduced the idea of a coin priced for its gold content rather than its rarity.
Why it matters
The Krugerrand established the template that later bullion coins followed: a recognizable, government-backed coin sold close to the value of its metal. It remains one of the most widely traded gold coins, which generally makes it easy to buy and sell.
In practice
Because the Krugerrand is 22-karat, the standard one-ounce coin weighs a little more than one troy ounce overall. The extra weight comes from copper added for durability, which gives the coin its warmer color. Despite that alloy, the pure gold content is exactly one troy ounce, so its melt value tracks the gold spot price.
Common confusion
The 22-karat fineness sometimes leads buyers to think a Krugerrand holds less than an ounce of gold. It does not. The copper is additional metal on top of the full troy ounce of gold, not a substitute for part of it.