Gold Krugerand Assistance

[rbrown4]

Does anyone out here collect or possess any Gold Krugerands? An acquaintance has asked me about selling six one once Krugerands that he has owned for 10 years or so and figures now is as good a time as any to part with them. What should one look for as far as determining the condition/value of these? Is it based purely on the current price of Gold?

 

Thanks,

 

Rey

[Zoins]

Realized auction prices go from $673 to $715.

[TJ'S Coins]

Krugerrands were the first of the modern one ounce bullion coins. They are bullion with only a slight premium above melt price. Among the American Golden Eagle, Canadian Maple Leafs and Austrian Philharmonics, Krugerrands generally carry the lowest premium. They can be purchased cheaper and thus will sell cheaper too.

[rbrown4]

Thanks guys, that is kind of what I figured, based on the little bit of reading I could find. I don't know what the price of gold was 10 years ago when he bought them, but he will probaly realize a nice little profit I imagine.

 

Rey

[James_OldeTowne]

"Grade" won't matter much on these. They are simply bullion. If he wants to sell, check out SilverTowne.

[rbrown4]

Thanks James.

 

Rey

[BillJones]

I sold ten K-rands for a customer at the FUN show a couple of years ago. When I offered them to a couple of very big dealers they replied that they were not buyers, which really surprised me. Finally I sold them to Silver Towne for a little under the melt price.

 

Like others said, the K-rands can be purchased for the lowest premium over melt of any of the widely traded gold bullion coins. The other side of that is that you will get less for them when you sell them.

 

I can't understand that given the fact that the poltical objections to the South African government are now a dead issue.

[Zoins]

Is the low premium due to dealers not wanting K-rands for some personal reason or dealers not wanting K-rands because they are harder to sell to collectors (who many not collect them for any number of reasons)?

[BillJones]

It has to be that the coins are hard to sell to anyone. When the largest dealer in the world refuses to buy 10 pieces, I'd say the coins just are hard to sell.

 

And like I said that makes no sense. Does it take a decade for people to realize that the government in South Africa has changed?

[Zoins]

Could it be that much of the reason there is little collector interest has little to do with the history of the government and is mostly due to other factors? When K-rands first came out they were the first gold bullion rounds out of the gates but now there is a lot of competition. There aren't that many gold collectors (willing to pay premiums) in the first place and there's a lot to choose from now.

 

One interesting thing is that K-rands are just bullion rounds and do not have a token legal tender face value, unlike the competition. There is generally more collector premium for NCLT than straight bullion because NCLT is a cross-over to coin collectors. My impression is also that bullion round and medal collectors focus more on collecting differing designs than getting one of every year when everything else is the same, the way coin collectors do.

[TJ'S Coins]

South Africa's reputation is improving around the world as demonstrated by the fact they will host the World Cup in 2010.

 

Zoins is correct in that the Krugerrand is primarily bullion although it does enjoy legal tender status within South Africa. Here is a link with helpful information.

 

Kruggerrand Information

[Zoins]

TaxFreeGold says:

[K-rands] have legal tender status in South Africa, which allowed them to be imported into many, but not all, countries without import taxes, duty or VAT.

I'm guessing most Americans are so far removed from import duties and VAT that the distinction doesn't matter to them at all. I think having a denomination printed on the round would have made a difference.

[TJ'S Coins]

The numismatic value of these coins is a joke. The one ounce KR is valued at 10 R which translates to around $1.43 US. The tenth ounce is valued at only 1R which equals 1/7th of a US dollar or $0.14. Maybe I should pick some up at "face value" when I visit there

[Zoins]

The numismatic value of these coins is a joke.

Do you mean the legal tender value? The interesting thing is that token NCLT face values drive a lot of coin collectors. Was the 1979 Canada Maple Leaf bullion coin the first NCLT with a printed face value? Who ever thought of this idea deserves a medal, so simple but with great results.

I should pick some up at "face value" when I visit there

I offered double face value for all the ASEs people have to sell in the BST forum but I haven't gotten any offers yet. I'm still hopeful because someone just got a 2006-W NGC MS70 ASE for face value

[TJ'S Coins]

Yes, I meant the legal tender value of these coins. The numismatic value should be higher and the melt value considerably higher.

 

Good luck, Zoins, on your search for ASE's at double face values

[cointagious]

Is the low premium due to dealers not wanting K-rands for some personal reason or dealers not wanting K-rands because they are harder to sell to collectors (who many not collect them for any number of reasons)?

 

 

KR's are the most heavily traded gold bullion coin in the world. If you are going to hold gold bullion, KR's are the best way to do it.

 

In regards to collecting them, there are are few 'key' dates from the mid 90's that sell for hefty premiums. Most that you see are dated in the late 70's thru the 80's.

 

On selling 10 pieces, it's my guess that you would get about spot - $12/15. Sell them to a local dealer and avoid the hassle of mailing. If you can't get close to that figure, please give my dealer buddy Brian Kuszmar a call 954/493-8811 m-f 9am to 3pm to sell or just some free friendly advice.

[rbrown4]

I received some additional information regarding what this gentleman has, unfortunately it was not that helpful in some aspects. I am going to search on the net for some answers or contact those referred above, but thought some of you may be able to help.

 

The 2 Krugerrands are 1978.

 

He also has 3 1981 "Mark Twains" - I have no idea what these are.

 

And 2-1985 QE II - I am assuming these are sovereigns.

 

This information was relayed to me by message so I need to track down the details.

 

I am more curious about the Mark Twains

 

Rey

[cointagious]

The Mark Twains were U.S. Mint products. Those medals preceded the American Gold Eagle program as an attempt at bullion and, I think, were the 1st Mint gold products since the 1930's. Expect most dealers to pay about 95 -96% of spot as they wholessale for about 98% of spot.

[Zoins]

OnlyGold.com has a list of the "American Arts" US Mint gold bullion pieces (including the Mark Twain) and their buy prices. With gold spot at $681.00/oz they will buy at the following prices:

• AGE 1oz: $684.40
• AGB 1oz: $674.20
• American Arts 1oz: $660.60

One way to make these worth more is to see if NGC will slab them. If they become gradeable by NGC I bet the values and demand will go up.

[rbrown4]

Thank you very much.

 

Rey