The American Gold Eagle and the South African Krugerrand are both iconic bullion coins that contain exactly one troy ounce of pure gold. So, how do they differ, and which gold coin is right for you?
Other than its design—the Krugerrand features the image of former South African President Paul Kruger on the obverse and an antelope on the reverse—the primary difference is in the Krugerrand’s alloy. Copper is the only alloy metal added to gold in the production of Krugerrands. This gives the coin a dark orange-gold hue. In contrast, the American Gold Eagle has both silver and copper added as alloys, giving the coin a brighter, classic yellow-gold color.
Both the American Eagle and the Krugerrand are 22-karat gold coins, meaning the U.S. Mint and the South African Mint use a composition of 91.67 percent gold and 8.33 percent alloy. Since gold is a soft metal, the addition of the alloys adds durability and scratch-resistance to the coins.
The one-ounce American Gold Eagle carries a symbolic face value of $50, while the Krugerrand has no official face value.
Both coins are issued in weights of 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce.
While the American Gold Eagle and the Krugerrand are both excellent additions to any investor’s gold collection, it is important to note that the Krugerrand is not authorized for U.S. individual retirement accounts, while Gold Eagles, the most widely traded gold coin in the United States, may be included in self-directed IRAs.
