History of the 1 Ounce Krugerrand

The One oz 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.

In 1884, gold was found in the “ridge of white waters” (in Afrikaans Witwatersrand), South Africa. General Joubert remarked that the gold find will “cause our land to be soaked in blood.” In this blood and conflict begins the Gold Krugerrand history. Paul Kruger was the President of the Transvaal at this time, and he was very concerned with the influx of gold hungry foreigners who flocked to the sixty mile range of east/west running hills of Witwatersrand. Johannesburg sprang up first as a shanty town, and then eventually became a thriving city. As more foreign miners arrived- they began to want a say on how things were done- for example tax rates and where the taxes were spent. The Boers were concerned about losing their independence – rightly so, as the British empire was eyeing the rich gold find. The seeds of conflict were sown.

In 1899, the British government demanded Uitlander (foreigner) rights to match those of the Boers. Realizing that the British wanted more than equal rights (Transvaal independence was at stake), Paul Kruger responded that all of the British should leave within 48 hours. This was an impasse which could not be broken via diplomatic means, and the second Boer War ranged across the country. The Boers fought hard and were able to demand some concessions at the war’s end in 1902, but the Transvaal independence was lost.

The next step on the golden road of Krugerrand history is the establishment of the Rand Refinery, which supplies the blanks for every Krugerrand stamped. The Rand Refinery (est. 1920) was created by the Transvaal Chamber of Mines to refine all gold mined in South Africa; and immediately began to refine gold ore for one the worlds most prolific gold producing regions, Witwatersrand.

A shiny new One oz Krugerrand is a product of its history. The obverse side has a portrait of Paul Kruger, painstakingly designed by Otto Shultz. Kruger also lends his name to the coin, along with Witwatersrand, which was shortened to “rand”; which also happens to be the national currency of South Africa. The finishing touch is the delicate Springbok antelope on the reverse- to symbolize South Africa.

The Trading with the Enemy Act of 1917 coupled with the Executive Order 6102 signed by FDR effectively made it illegal for US citizens to own gold bullion at the time the Krugerrand came into being (1967). The South African government wanted to be able to sell gold to US and world investors- so they did two very clever things. One, they made it legal tender, which allowed US investors to purchase it as a foreign coin. Second, rather than list a denomination on the coin- they listed the actual gold content in the coin. So a One oz Gold Krugerrand contains exactly that, one full ounce of gold bullion. Krugerrands are not pure gold, for every 11 parts gold there is one part copper to provide strength. This copper content makes them heavier than their one ounce label. South Africa still had another political hurdle to overcome before widespread trade in the Krugerrand could occur for US citizens- apartheid. Until political reform ended the practice in the mid nineties, the Krugerrand was illegal to import. In spite of this prohibition, and with free trade now, the Krugerrand has become the most popular bullion coin in history, with 46 million ounces in circulation. The One Ounce Gold Krugerrand history is a tale of adventure, war, and progress.