The South African Krugerrand is a type of gold coin.
Gold coins are coins made from gold minted at a mint and issued by some governments as a form of legal tender. When sold internationally, there are no business legalities that accompany the sale of gold bullion. Coins can usually be purchased from central banks, precious metals brokers, in-store coin dealers, or online.
In general, not all gold coins are of the same purity. The amount of purity generally depends on the issuing nation. Coin purity typically ranges from 0.9167 fine or 22 karat, such as the American Gold Eagle and South African Krugerrand, to 0.9999 fine or 24 karat, such as the Austrian Philharmonic and Canadian Maple Leaf.
Each nation that offers these coins normally produces them in different denominations or weights. The most common measure of weight is the troy ounce (ozt). The weight of some coins is measured in grams using the decimal system; they are usually the heaviest coins. The most common denominations are 1/20 ozt, 1/10 ozt, 1/4 ozt, 1/2 ozt, 1 ozt and 1 kilogram (kg).
Gold has been used as currency for most of recorded history. The first minted coins were made of gold. They were a logical choice as an alternative to the barter system for trading valuables. Another use for them was as a public relations device for kings, queens, and emperors. His image on a coin showed people his appearance.
Gold coins should not be confused with numismatic gold coins. Numismatic coins are not legal tender and other elements influence their value. These coins are collectible, but their value is often determined by their finish, rarity, and design. The numismatic market is quite different from the market for gold coins.
In modern times, gold coins are generally purchased strictly for the value of their gold content, thus creating an investment. They are one of the most affordable ways for small investors to physically own a gold investment due to the size of the denominations. In addition, it is very likely that there are several people who prefer to have an investment in their hands than to keep it in the hands of a third party.