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Pick a Size
Krugerrands come in four sizes: 1-ounce, half-ounce, quarter-ounce and one-tenth-ounce weights. The 1-ounce Krugerrand is most popular and the least scarce of the four. You can purchase them in larger quantities.
To obtain the most gold for your dollar, purchase 1-ounce Krugerrands. Ten one-tenth ounce Krugerrands generally sell for more than a single 1-ounce Krugerrand. Fractional weights on the whole, though, cost far less than a 1-ounce Krugerrand. Therefore, you might prefer to buy a smaller coin if you simply wish to own one.
Krugerrand Sellers
Thousands of Krugerrand coins sell each day. Some coin dealers and private collectors sell their coins in shops, at online auctions and at collectibles shows. Gold dealers, though, sell most of the Krugerrands that change hands each day. For example, CMI Gold and Silver Inc., based in Phoenix, Arizona, buys and sells Krugerrand coins. The company requires minimum orders of at least 10 ounces.
CMI Gold and Silver, among other companies, requires telephone ordering, which allows the company to lock in a price based upon the most up-to-date price of gold. The company requires payment the day of the order, and the company ships Krugerrands the same day. Many companies only sell during the hours when gold is publicly traded.
Another company, MJPM Jewelry and Precious Metals, of Corvallis, Oregon, is a source for tax-free Krugerrands. Buyers pay no sales tax on purchases. While the company has limited hours, it lists current Krugerrand prices on its website. A media company, Kitco, provides real-time updates on the going rate for Kruggerands. MJPM also offers volume pricing, which comes with a slight price break.
Online auction sites such as eBay also offer the opportunity to purchase Krugerrands. Most of those sites, however, do not offer large quantities. Thus, they are geared more toward the collector.
Considerations
Gold and silver prices change daily as investors buy and sell. Given such volatility, Krugerrand prices vary with the daily market. Dealers sell Krugerrands at a price above the going rate for an ounce of gold. Check with different dealers and ask for their pricing for the Krugerrands and compare it with the gold price on the market at the same time. Buy from the dealer charging the lowest premium by percentage.
To save money, buy Krugerrands from a coin dealer or through an online auction. Those sellers tend to offer coins at closer to the current gold rate, but buyers often are limited in the quantity available.
Authenticity of Krugerrands is essential to a sound investment. An authentic 1-ounce coin is easy to identify. The coin features the portrait of Paul Kruger, South Africa's last president. The profile faces to the left and the words "SUID AFRIKA" along with the words "SOUTH AFRICA" are arched in front of Kruger's profile. The coin's other side features an engraving of a gazelle. The coins mint date is featured on both sides of the coin. On the gazelle side, the first two numbers in the date are to the left of the animal and the other two are to the right. Along with the gazelle, the coin includes the worlds "FYNGOULD 1OX FINE GOLD" and the word "KRUGERRAND."
Testing coins offers one way to avoid fakes. You can test density, weight, thickness and its diameter. To measure a Krugerrand, use an accurate ruler with millimeter markings. A true 1-ounce Krugerrand weighs 33.93 grams. It should have a diameter of 32.77 mm and a thickness of 2.84 mm.