When estimating South African Krugerrand Prices, you should count both "spot price" and premium or markups over spot.
South African Krugerrand is World's first bullion coin. Minted since 1967,Krugerrand was named after the last president of the old South African Republic, Paul Kruger. The 1 oz Gold Krugerrand coin was also the first gold coin that contains exactly one ounce (33.93 grams) of pure gold. In fact, Krugerrand coins didn’t have monetary value imprinted on them. Krugerrand Prices are based upon the market value of one-ounce pure gold.
Besides the “spot price” indicated above, you have to add premium for Krugerrands when estimating Krugerrand prices. Gold Krugerrands, like Mexican Gold 50 Peso, carry small premiums (5% to 10%) depending on purchase quantity. The smaller premiums are, the more gold you'll get for your money, making Gold Krugerrand an ideal option for small investors.
When gold price fluctuates in the market, the price or value of Krugerrand changes correspondingly. For instance, back in early 2006 when gold prices were around $550 per ounce, you could buy 1 oz Krugerrand for about $550 to $600 each. When gold price jumped to $900 per ounce today, the 1oz Krugerrand price is now close to $950 each. In other words, Krugerrand prices constantly fluctuate as gold prices do in the market place. So you must watch gold prices closely, and decide if it's time to buy, sell or hold krugerrands, anticipating a higher price.
With the world economy in turmoil, you should start looking for a safer and more effective investment to protect your assets beyond stocks and mutual funds. As the most popular gold coin with small premium, gold Krugerrands are often recommended especially towards small investors. The current market trend shows that Krugerrand Prices may continue increasing as the gold prices jumping north of $900, making buying Krugerrand a great investment option to consider.
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