First minted in 1967 by the South African government, the gold Krugerrand coin is the first coin to be valued at the current market value of 1 troy oz. gold. In other words, the krugerrand coin didn’t have monetary value imprinted on it. Its value is based upon the market value of one-ounce 22 carat gold it contains. Once the gold price fluctuates in the market, the price or value of Krugerrand changes correspondingly. For instance, the 1 oz krugerrand value would be around $1000 when the market value of gold is $1000. If at the time, the gold price jumps up to $1500, the 1 oz Krugerrand value would increase to $1500 accordingly.

Besides the spot price of gold you have to add premium for the Krugerrand when estimating the gold coins prices. Gold Krugerrands, like Mexican 50 Peso gold coins, usually carry small premiums from 5% to 10% depending on the coin sizes and purchase quantity. Usually 1 oz Krugerrand coins carry the smallest premium, while the smaller fractional sizes coins (1/2 oz, 1/4 oz and 1/10 oz) carry higher premiums.

Because of the recent world economy in turmoil, more and more smart people turn to gold investment as a way to protect their personal wealth instead of buying stocks. The current market trend shows that the Krugerrand value might continue increasing, making it a safe investment especially for small investors.