by Seasoned silver investors are aware of classic investment coins such as the Britannia, the Silver Eagle, and the Silver Maple Leaf. Yet, coins like Silver Krugerrand are always the first to come to mind, though they arguably should be. While Maple and Eagle coins have their renowned past, Krugerrands bring something unique to the table. It has a fascinating history and could easily appeal to collectors and numismatists. Launched in September 2017 by the South African Mint, the Silver Krugerrand has garnered quite a lot of attention from collectors around the globe. Building upon the success of the Gold Krugerrand, both silver and gold capture an appealing blend of culture and animal designs.
Let’s dive in to understand silver Krugerrands’ history, design, and investment benefits.
History and Background of Silver Krugerrands
Similar to its gold counterpart, the Silver Krugerrand has the same historical feel to it. South Africa’s government mint developed the Gold Krugerrand in 1967 to endorse private ownership of gold bullion. The head side of the coin displays the image of Paul Kruger; this image was designed by Otto Schulz in 1892.
Despite the controversial nature of the Kruger—particularly in the U.S., which banned the Gold Krugerrand’s import in 1985—the coin remains a favorite among collectors.
After the official non-recognition of apartheid and the subsequent lifting of sanctions in the United States in 1991, American coin collectors were once more able to obtain this famous gold piece, and its popularity was revived.
On the 50th-year celebration of the gold Krugerrand, the South African Mint issued the inaugural 1 oz silver Krugerrand in 2017. After that, Prestige Bullion and a Rand Refinery partnership released its initial silver 1 oz Krugerrand coin in 2018.
Design of Silver Krugerrands
The Silver Krugerrand, introduced in 2017, mirrors the iconic design of the Gold Krugerrand, with one key difference: face value.
Obverse Design
The head side displays Paul Kruger as designed by Otto Schultz. In the actual picture, there is the left-side profile of Kruger, the third President of the South African Republic, with his singular feature – a beard. It contains inscriptions with the name of the issuing state in Afrikaans: ‘SUID-AFRIKA’ and in English: ‘SOUTH AFRICA.’
Reverse Design
The reverse side also showcases a design provided by Coert Steynberg that depicts a springbok antelope, which is widely revered in South Africa. The springbok jumps across the field, and the side of its face is exposed to the audience. The year is positioned on top and at the bottom of the animal with the inscription “KRUGERRAND” above it. Along the bottom are inscriptions: “FYNSILWER 1 OZ FINE SILVER” and the face value “R1” (1 Rand).
Why Invest in Silver Krugerrands
Here are the top reasons to invest in Silver Krugerrand
Tangible Asset and Inflation Hedge
Silver Krugerrands can be purchased to buy physical precious metals instead of stocks or bonds that might be located digitally on the internet. These physical coins are good to have as an inflation hedge as they are priced based on the spot silver price, not the currency. Unlike paper investments, physical silver has inherent value, which implies that it is the ideal hedge to diversify and safeguard your portfolio against such uncertainties. Some analysts recommend diversifying investments with physical metals – one of the examples is the Silver Krugerrand to avoid significant losses during a downturn.
Global Recognition
The Silver Krugerrand enjoys prestige globally and has a long history in circulation. Since its introduction to the public in 2017, it has been lauded for its appearance and relevance to culture. A clear illustration of a portrait of Paul Kruger and the springbok indicates that the South African Mint has done a good job in creating the coin. Its historical background and continued demand increase its value among collectors and investors globally, ensuring its place within the precious metals portfolio.
Affordability and Accessibility
Another advantage of the Silver Krugerrand is that it is significantly cheaper than other government-issued bullion coins. It does stand at a premium to the current spot value of Silver Prices, although it is still cheaper than many other products with considerably higher premiums, such as the Britannia. These factors have made the Silver Krugerrand to be more preferable, especially for first-time or those people with low pockets and experienced collectors.
High Liquidity
Another advantage of the Silver Krugerrands is that they are fairly liquid coins, which means they are relatively easy to sell. However, it is available in only one-ounce form, which may cause hassles for those who wish to sell small quantities of silver.
Economic and Geopolitical Factors
Fluctuations in a specific economy and politics have a significant impact on the Silver Krugerrands’ value and convenience of selling these coins. However, while the risk of their occurrence is low, regional popularity and cost of shipping may also influence the chances of reselling. For instance, Krugerrands are more in demand in some countries, such as the United States, which may affect the selling environment. FTMÇ
Conclusion
The silver Krugerrand is one of the most appealing investment options because of its intrinsic worth, reputation, reasonably low prices, and high market flexibility.
A short history, unique exterior, and guaranteed silver content make it a worthy investment in the precious metals portfolio. Its liquidity may fluctuate, and economic conditions affect the coin’s ability to be sold for profit, but the Silver Krugerrand is a sound investment for portfolio diversification and inflation hedge.
Thinking about diversifying and owning your own coin collection? Silver Krugerrand coins may be for you! Take a look at the range of Silver Krugerrand coins offered at BOLD Precious Metals.
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