Until now, the Krugerrand has only been made of 22-karat gold bullion. The new silver coins will be linked to the price of silver.
The new silver bullion Krugerrand went on sale this week, marking the first time in the Krugerrand’s 51-year history that it has been made with a metal other than 22-karat gold bullion.
Made by Prestige Bullion, a joint venture between Rand Refinery and the South African Mint, the silver Krugerrand will be produced in unlimited mintage, dependent on market appeal, and will be linked to the daily price of silver. It is expected to generate “significant interest.”
“Extending the Krugerrand brand to silver lends it an immediate and unique property as an attractive asset class. The brand’s illustrious pedigree is likely to attract interest from investors and collectors alike,” said Richard Collocott, Prestige Bullion’s director and Rand Refinery’s commercial executive head.
“The 1 ounce silver bullion coin has been developed to serve as a reliable and attainable investment in the Krugerrand,” he added.
The coins are made from silver with a purity exceeding 99.9 percent and weigh in at no less than 31.107 grams with a diameter of 38.725 millimeters. Each coin has a face value of R1. They are expected to help continue the strong momentum of the existing gold Krugerrand.
The coins bear the same iconic images as the gold Krugerrand, which features a springbok designed by Coert Steynberg on the reverse. The observe of the coin features the bust of Paul Kruger, designed by Otto Shultz, surrounded by 200 serrations.
The creation of the silver Krugerrand was first announced last month on July 11, at which time Collocott commented, “[t]he silver bullion coin will allow those wishing to invest in Krugerrands an even greater choice when diversifying their portfolio at an affordable price point.”
He continued, “[t]rust and consistency are the values that have made the Krugerrand great and we are confident that the new coin will quickly stand out and be counted with its peers.”
As of 3:04 p.m. EST on Tuesday (August 7), silver was trading at US$15.32 per ounce. To learn more about investing in physical products, click here.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.