The South African Krugerrand is a gold coin that comes in various sizes. The smallest contains 1/10 troy ounce of gold and the largest, 1 full troy ounce. Krugerrands are not pure gold because they are alloyed with a small amount of copper (about 8 per cent). This makes the Krugerrand hard and resistant to wear. Krugerrands are considered gold bullion and are a convenient way to invest in gold. They are not currency or rare coins, and their value depends on the gold content of the coins. The first Krugerrands were minted in 1967, and they have become a favourite of investors. If you want to sell gold Krugerrands, this guide explains how to go about it.
Know the market
gold coins image by Roman Sigaev from Fotolia.com
Know the market. When you want to sell gold Krugerrands or precious metals in any form, you should check the current market prices. Use the link in the Resources section to get daily prices in London and New York. The price of Krugerrands depends directly on the current market price of gold, so this is essential information to have before you sell.
Decide how you want to sell your gold Krugerrands. Some people use eBay. However, to do so, you need to put your Krugerrands up for auction and wait. In addition, you will have to pay the expense of shipping and insurance. Many people prefer to sell direct to a dealer to speed up and simplify the transaction. The remaining steps explain how to do this.
Locate a reputable dealer. The easiest way is to use the U.S. Mint's online dealer locator (see the link in Resources). On the U.S. Mint locator webpage, choose your state from the menu and click "Go." The locator gives you a list of bullion dealers in your area, along with contact information.
Check with two or more dealers. Ask about their pricing policy. Good dealers will set a daily price very close to the current market value of gold bullion and will charge a small premium (1 or 2 per cent).
Sell your Krugerrands. The dealer will probably want to check the coins for authenticity. It's a good idea to find out ahead of time what an individual dealer's policy is to avoid inconvenience or misunderstanding.
- If you decide to sell Krugerrands on eBay or on another online market, it is helpful to upload a photograph of the coins. A good picture allows buyers to see the coins and their condition. Your Krugerrands will sell a lot faster with a photograph.