When you think of South African coins, one name probably comes to mind: the Krugerrand. This iconic coin is known all over the world and has been a top choice for precious metal investors for decades. But not all Krugerrands are created equal—some are made of gold, others of silver. So what exactly is the difference between a Silver Krugerrand and a Gold Krugerrand?
Whether you're a coin collector, investor, or someone curious about precious metals, this guide breaks it all down for you—from history and composition to pricing, collectibility, and investment potential.
Let’s dive in!
🏛️ A Quick History of the Krugerrand
The Gold Krugerrand was first minted in 1967 by the South African Mint and the Rand Refinery. It was created to promote South African gold internationally and to make it easier for ordinary people to invest in gold.
It quickly became one of the most traded gold coins in the world.
The Silver Krugerrand, on the other hand, was only introduced much later—in 2017, to celebrate the 50th anniversary of the gold version. It marked the beginning of a new era for the Krugerrand brand by making it more affordable to own a piece of precious metal history.
🥇 Gold Krugerrand: Overview
- Introduced: 1967
- Metal: 22-karat gold (91.67% gold, 8.33% copper)
- Weight: 1 troy ounce (approx. 33.93g)
- Diameter: 32.77 mm
- Edge: Reeded
- Face Value: No official face value (traded at market value)
🔍 Key Features:
- Contains 1 full ounce of pure gold
- Mixed with copper for durability, giving it a distinctive reddish tint
- Not legal tender (no R-value), but it's globally recognized for its gold content
- Used primarily as an investment coin, not for spending
🥈 Silver Krugerrand: Overview
- Introduced: 2017
- Metal: .999 fine silver (99.9% silver)
- Weight: 1 troy ounce (approx. 31.1g)
- Diameter: 38.7 mm
- Edge: Reeded
- Face Value: R1 (legal tender)
🔍 Key Features:
- Contains 1 full ounce of pure silver
- Designed for both investors and collectors
- Slightly larger than the gold version
- Legal tender in South Africa with an official value of 1 Rand
⚖️ Comparison: Gold Krugerrand vs. Silver Krugerrand
| Feature | Gold Krugerrand | Silver Krugerrand |
|---|---|---|
| Year Introduced | 1967 | 2017 |
| Precious Metal | 22K Gold (91.67%) | Fine Silver (99.9%) |
| Weight | 33.93g (1 oz gold + copper alloy) | 31.1g (1 oz pure silver) |
| Diameter | 32.77 mm | 38.7 mm |
| Face Value | No official R-value (not legal tender) | R1 (legal tender) |
| Investment Popularity | High | Growing |
| Collectible Editions | Yes (proofs, sets) | Yes (proofs, anniversary issues) |
| Durability | More durable (copper alloy) | Softer (pure silver) |
| Color/Tone | Reddish gold | Bright silver |
💰 Value & Investment Potential
Gold Krugerrand
Gold Krugerrands are globally known and widely traded. Their value is tied directly to the international gold price, plus a small premium for minting and demand. They’re considered a stable and long-term store of value, especially in uncertain economic times.
Current Value (as of June 2025):
- Around R42,000–R48,000 per 1 oz coin (based on gold price trends)
Silver Krugerrand
Silver Krugerrands are more affordable, making them ideal for first-time precious metal investors. While their individual value is much lower than gold, silver often experiences faster percentage growth in bull markets.
Current Value:
- Around R500–R700 for bullion versions
- Proof editions can go for R1,500+
🧑⚖️ Legal Status: Face Value vs. Bullion Value
This is one of the biggest differences:
- Gold Krugerrand has no face value. It’s not legal tender but is accepted globally for its gold weight.
- Silver Krugerrand does have a face value: R1. However, the actual silver value is much higher, so nobody would ever spend it as a rand coin!
🎨 Design Comparison
Both coins share the same iconic design:
- Obverse (Front): Bust of Paul Kruger, the former President of the South African Republic.
- Reverse (Back): A springbok antelope, one of South Africa’s national symbols.
However:
- The Silver Krugerrand has the words "FYNSILWER 1 OZ FINE SILVER R1" to indicate purity and value.
- The Gold version typically reads "KRUGERRAND" with "1 OZ FINE GOLD" in smaller text.
🧰 Use Cases: Investment vs. Collecting
Gold Krugerrand:
- Best for: Long-term investors, wealth preservation, gold diversification.
- Often used in retirement portfolios and as a hedge against inflation.
- Less likely to be sold in small quantities due to its high price.
Silver Krugerrand:
- Best for: Beginners, collectors, silver stackers, and gifts.
- Easier to trade or sell in small quantities.
- Many buy these coins as part of themed collections or annual sets.
🛡️ Durability and Storage
Gold Krugerrands are mixed with copper, making them harder and more resistant to scratches. Silver, being softer and purer, is more prone to tarnishing and should be kept in airtight capsules or sleeves.
Pro Tip: Always store coins in a dry, cool environment to prevent tarnish or damage.
🧠 Which One Should You Buy?
It really depends on your goals:
| Your Goal | Best Choice |
|---|---|
| Long-term wealth storage | Gold Krugerrand |
| Affordable metal investment | Silver Krugerrand |
| Starting a collection | Silver Krugerrand |
| Diversifying large portfolio | Both! |
| Gifting or commemorating | Silver Proof Edition |
🧾 Are Krugerrands Taxed?
In South Africa:
- Gold Krugerrands are considered legal tender for tax exemption purposes—they’re not subject to VAT.
- Silver Krugerrands, on the other hand, are subject to 15% VAT, unless bought second-hand.
Always check with a tax advisor if you're buying in bulk or planning to sell.
❓ Frequently Asked Questions
Q: Are silver Krugerrands real money?
A: Technically yes—they have an R1 face value, but no one uses them as currency.
Q: Can I buy Krugerrands from a bank?
A: Some banks sell them, but most people buy through the SA Mint, dealers, or online platforms.
Q: Is it better to buy proof or bullion?
A: For collecting, go for proof. For investing, go for bullion—it’s cheaper and trades closer to metal spot prices.
Q: Can I resell Krugerrands?
A: Yes! There’s a huge secondary market, especially for gold coins.
🏁 Final Thoughts
Both Silver and Gold Krugerrands are legendary coins—but they serve different purposes.
- The Gold Krugerrand is the heavyweight champion of investment coins, backed by over 50 years of global trust.
- The Silver Krugerrand is the people’s favorite—affordable, beautiful, and perfect for beginners or collectors.
Whether you want to build a precious metals portfolio, start a coin collection, or just own a piece of South African history, there’s a Krugerrand that’s right for you.
So which one are you choosing—the shine of silver or the glow of gold?