The Chamber of Mines of South Africa was formed in 1889 to represent mining employers and make decisions for the gold interests of South Africa. They were the planners behind the 1 oz Krugerrand, but the history of the Gold Krugerrand goes further back- well beyond it’s first mintage in July of 1967.
Witwatersrand, South Africa or the “ridge of white waters” in Afrikaans, is truly where Krugerrand history starts. These mineral rich hills run east to west near Johannesburg for over sixty miles. They produce many minerals including uranium- and in 1884 the first gold discovery was made. The president of the Transvaal at that time was Paul Kruger, who knew that the gold discovery would forever change the face of South Africa. As he predicted, the rich gold find brought in many foreign miners looking to make their fortune. As more and more foreigners entered, they eventually started to outnumber the Boers, and their protests for their rights lead to increasing levels of conflict. Underlying this concern for their rights, was the British desire to control gold rights.
The second Boer war started in 1899 with ultimatums from the British demanding equal rights for the uitlanders (foreigners), and Kruger’s response for the British to be out of Transvaal in 48 hours. After three bloody years, the war finished in 1902 and Transvaal was absorbed into the British empire- with some concessions to the Boers.
The next step on the golden road of Krugerrand history is the establishment of the Rand Refinery, which supplies the blanks for every Gold Krugerrand stamped. The Rand Refinery (est. 1920) was made by the Transvaal Chamber of Mines to refine all gold mined in South Africa; and immediately started to refine gold ore for one the worlds most prolific gold producing regions, Witwatersrand.
Now to assemble the essential elements of a 1 oz Gold Krugerrand. First on the reverse side of the coin, we have a Springbok antelope, designed by Coert Steynberg. The antelope symbolizes South Africa. Next the Krugerrand honors the 5th President of the South African Republic, Paul Kruger with a picture on the obverse. Finally, the name itself is derived by adding Kruger’s name to the national currency- the Rand. And where did the Rand come from? Witwatersrand of course.
In 1967 when Krugerrands were first produced, the United States government prohibited its citizens from owning gold bullion, but allowed ownership of foreign coins. The 1 oz Krugerrand was a brilliant piece of marketing for two reasons. One, it was the first bullion coin to be traded for its gold content, rather than a denomination on the coin (a 1 oz gold Krugerrand is 22 carats, 11 parts gold to 1 part copper- but it does contain one full ounce of gold bullion). As the price of gold fluctuates, so goes the price of Krugerrands. Second, by making the Krugerrand legal tender, it allowed American investors to buy the coin. This allowed everyday people to buy gold without the need to have it melted and assayed. The South African Krugerrand was declared illegal to import in many Western countries during the 1970s and 1980s due to the policy of apartheid. With South African political reform from 1990 to 1994 and the abolishment of apartheid, one ounce Krugerrands became legal imports to the U.S. Even with the previous prohibitions, Krugerrands are the most well loved gold bullion coin- with over forty-six million ounces in circulation. The One Ounce Krugerrand History is peppered with blood, politics, and ingenuity.