What Kind of Factors Affect Krugerrand Gold Coins Price?

Krugerrand Gold Coins Price

Similarly to any gold bullion coin, Krugerrand gold coins value is derived almost exclusively from the gold weight they contain. Due to the nature of gold bullion coins they track the current spot price of gold. So the price of gold and all the factors going into its calculation ultimately drive the prices of Krugerrands. In its turn the price of gold is affected by such major factors like global supply and demand for gold. Inflation rates and the overall state of the economy are also important factors increasing or decreasing the prices of precious metals commodities.

During favorable economic scenarios, prices on Krugerrand gold coins and on all other gold bullion coins are not very high. Once inflation rates increase and US dollar becomes weak, prices on gold and all other precious metals start going up. This wealth preserving mechanism of gold make a lot of investors turn to bullion coins and, specifically Gold Krugerrands, a very attractive forms of investment in physical gold.

However, the actual and individual Krugerrand gold coins prices are affected by several other factors besides the spot price of gold, namely, coin’s weight, premium mark ups, investor demand and manufacturing costs. Since Krugerrand gold coins are available in four sizes and are sold by many different online and local dealers, it helps to do the math before deciding where to buy. So when looking for the best price on Gold Krugerrands multiply 1 oz gold Krugerrand by the current spot price of gold and compare which online gold bullion dealer offers this type of coins at a more affordable pricing.

Krugerrand coins prices are very affordable compared to similar 1 oz gold bullion coins available at the market due to many factors. The main factor has to do with relatively high supply of Krugerrands of older mintages. Expect to pay slightly more for South African gold coins of newer mintage years. Consider buying coins of smaller sizes ranging from 1/10 of an ounce to ½ of an ounce of pure gold. These mighty coins are a perfect way of bartering should we face harsh economic times ahead. However, if your sole purpose of purchasing Krugerrand gold coins is investment, look no further than standard 1 oz size because it provides the ultimately low cost to value ratio due to lower premiums on full sizes compared to fractional varieties.

Depending on the quantity of Gold Krugerrands you buy, you can qualify for wholesale prices of Krugerrand gold coins; just ask your gold bullion dealer if they offer this program. To land the best price on Krugerrand gold coins, shopping around is a must – you will be amazed by the difference of gold coins’ pricing available online. To land an even better Krugerrandgold coins price, search eBay, a truly wonderful online marketplace for finding unique products at unique prices. Some gold investors swear by finding the best deals on Krugerrand coins and under a spot price of gold. As a word of precaution, buy from highly reputable sellers and stay away from sellers based in China due to too many fake gold coins originating from this source.