The 1/10 Krugerrand has become a favorite among gold investors seeking affordability, flexibility, and high-quality bullion. As a fractional version of the iconic South African Krugerrand, this smaller gold coin offers a practical way to own gold without the need for a substantial upfront investment.
In this article, we’ll cover everything you need to know about the 1/10 Krugerrand, from its history and specifications to its value and benefits for investors in 2025.
What is a 1/10 Krugerrand?
The 1/10 Krugerrand is a fractional gold coin weighing one-tenth of an ounce. It’s a smaller version of the world-famous South African Krugerrand, which was first minted in 1967. While the original Krugerrand contains one full troy ounce of gold, fractional Krugerrands (such as 1/2, 1/4, and 1/10) were introduced in 1980 to make gold more accessible to a wider audience.
This coin retains all the key features of its larger counterpart, including its 22-karat gold composition and iconic design.
Why Choose the 1/10 Krugerrand?
The 1/10 Krugerrand is an excellent choice for investors and collectors alike. Here’s why:
- Affordability: As a fractional coin, it costs significantly less than a full ounce of gold, making it accessible to those with limited budgets.
- Liquidity: Its smaller size makes it easier to sell or trade compared to larger coins, especially during times of economic uncertainty.
- Flexibility: Ideal for diversifying your portfolio without overcommitting to a single investment.
- Recognizability: The Krugerrand is one of the most trusted and recognizable gold coins globally, ensuring high demand.
What is the Composition of a 1/10 Krugerrand?
The 1/10 Krugerrand is made from 22-karat gold, which is an alloy of 91.67% pure gold and 8.33% copper. This alloy gives the coin extra durability while maintaining its beautiful gold luster. The coin weighs 3.393 grams, of which 3.11 grams is pure gold.
What is the Value of a 1/10 Krugerrand?
The value of a 1/10 Krugerrand is tied to the spot price of gold. For example, if the current gold price is $1,900 per ounce, the intrinsic value of the coin would be approximately $190. However, premiums are typically added by dealers to cover minting and distribution costs. In 2025, premiums for 1/10 Krugerrands can range from 10% to 30% over the spot price.
How to Calculate 1/10 Krugerrand Prices
To determine the price of a 1/10 Krugerrand, you can use this formula:
Price = Spot Price of Gold × 0.10 (for 1/10 ounce) + Premium.
For instance, if the spot price is $1,900 and the dealer charges a 20% premium, the price would be:
Price = $1,900 × 0.10 + ($190 × 0.20) = $190 + $38 = $228.
Where Can You Buy 1/10 Krugerrands?
1/10 Krugerrands are widely available through reputable gold dealers, online bullion platforms, and even local coin shops. Some of the top platforms to consider include:
- APMEX
- JM Bullion
- Kitco
- BullionStar
- Local coin shops
Always ensure the seller is credible and offers verified gold coins to avoid counterfeit products.
What Makes the Krugerrand Unique?
The Krugerrand was the world’s first modern bullion coin, designed specifically for gold investment. Unlike other gold coins, Krugerrands do not have a face value. Instead, their value is determined solely by the market price of gold. This makes the coin an attractive choice for investors focused on gold’s intrinsic value rather than its numismatic worth.
Design Features of the 1/10 Krugerrand
The 1/10 Krugerrand features the same timeless design as its larger counterparts:
- Obverse: A portrait of Paul Kruger, the former President of the South African Republic, designed by Otto Schultz.
- Reverse: A Springbok antelope, the national symbol of South Africa, surrounded by the coin’s weight and gold content.
This design hasn’t changed significantly since its introduction, adding to the coin’s iconic status.
What is the History of the Krugerrand?
The Krugerrand was first introduced in 1967 by the South African Mint as a way to market South African gold to the world. By the 1970s, it became the most popular gold coin globally, accounting for 90% of the global gold coin market. Today, the Krugerrand remains a symbol of gold investment, with fractional sizes like the 1/10 version catering to modern investors.
Who Should Buy the 1/10 Krugerrand?
The 1/10 Krugerrand is ideal for:
- New Investors: A great entry point for those new to gold investing due to its low cost.
- Small Budget Investors: Those who want to accumulate gold gradually without a large upfront cost.
- Collectors: Adding a fractional Krugerrand to a collection offers both aesthetic and investment value.
- Preppers: The smaller size is highly practical for barter or trade in emergencies.
How to Store 1/10 Krugerrands Safely
- Use Protective Cases: Store your coins in airtight capsules or coin holders to prevent scratches.
- Keep in a Safe Place: Use a home safe or a bank safety deposit box to secure your gold.
- Avoid Handling: Handle coins by the edges to avoid leaving fingerprints or causing wear.
The Benefits of Investing in Fractional Gold
Fractional gold coins like the 1/10 Krugerrand offer several advantages over larger gold bars or coins:
- Easier to Liquidate: Smaller denominations are easier to sell or trade, especially during economic crises.
- Lower Initial Cost: You can start investing in gold without the financial commitment of buying larger coins.
- Portability: Smaller coins are easy to carry and store, making them a practical choice for many investors.
Can You Sell 1/10 Krugerrands Easily?
Yes, 1/10 Krugerrands are highly liquid and easy to sell. Their global recognition and demand ensure that you can find buyers quickly, whether through local dealers, online platforms, or private collectors.
Is the 1/10 Krugerrand a Good Investment in 2025?
With gold prices expected to remain strong in 2025, the 1/10 Krugerrand is an excellent investment for those seeking to hedge against inflation, diversify their portfolios, or secure a tangible asset. Its affordability, liquidity, and reputation make it a top choice among fractional gold coins.
FAQs About the 1/10 Krugerrand
1. Is the 1/10 Krugerrand made of pure gold?
No, it’s 22-karat gold, with 91.67% pure gold and 8.33% copper for durability.
2. What is the weight of a 1/10 Krugerrand?
The coin weighs 3.393 grams, with 3.11 grams being pure gold.
3. Why doesn’t the Krugerrand have a face value?
Its value is tied to the gold market price rather than a fixed monetary value.
4. How much is a 1/10 Krugerrand worth?
Its value depends on the gold spot price plus a dealer premium.
5. Are 1/10 Krugerrands easy to sell?
Yes, they are highly liquid and in demand worldwide.
6. Can I buy 1/10 Krugerrands online?
Yes, reputable online dealers like APMEX and JM Bullion sell them.
7. Are Krugerrands legal tender?
Yes, they are considered legal tender in South Africa.
8. What’s the difference between 1/10 Krugerrands and other fractional coins?
The Krugerrand is known for its global recognition and 22-karat durability.
9. Do Krugerrands make good gifts?
Yes, their iconic design and investment value make them a thoughtful and valuable gift.
10. Are 1/10 Krugerrands prone to counterfeiting?
While counterfeiting exists, buying from reputable dealers minimizes this risk.
Investing in a 1/10 Krugerrand allows you to own a piece of history and wealth while enjoying the flexibility and affordability of fractional gold coins. Whether you're just starting or adding to an established collection, this coin is a smart choice for 2025 and beyond.
How Does the 1/10 Krugerrand Compare to Other Fractional Gold Coins?
When evaluating fractional gold coins, the 1/10 Krugerrand stands out due to its history, recognizability, and trusted reputation. However, comparing it to other popular fractional coins can help you make an informed decision:
- 1/10 American Gold Eagle: The American Gold Eagle is a 22-karat gold coin similar to the Krugerrand but carries a higher premium due to its U.S. origin. It features a stunning design of Lady Liberty and is backed by the U.S. government.
- 1/10 Canadian Gold Maple Leaf: The Maple Leaf is a 24-karat gold coin (99.99% pure gold), giving it a slightly different appeal for those prioritizing purity. However, its softness can make it more prone to scratches than the 1/10 Krugerrand.
- 1/10 Austrian Philharmonic: This 24-karat gold coin is highly artistic, featuring a design of musical instruments. Like the Maple Leaf, its high purity makes it a beautiful but delicate option.
- 1/10 Britannia Gold Coin: The Britannia is a 22-karat gold coin from the United Kingdom, known for its elegant design and security features.
Each coin has its advantages, but the 1/10 Krugerrand’s global recognition, durability, and lower premiums make it a favorite among both new and seasoned investors.
What Role Does the 1/10 Krugerrand Play in Diversifying a Portfolio?
Adding a 1/10 Krugerrand to your portfolio is an effective way to diversify and mitigate risks. Gold has historically served as a hedge against inflation, currency fluctuations, and economic uncertainty. Fractional coins like the 1/10 Krugerrand allow you to:
- Expand Your Holdings Gradually: Instead of investing in large gold bars or coins, you can accumulate fractional coins over time.
- Improve Liquidity: Smaller coins are easier to liquidate in parts, giving you more flexibility during financial emergencies.
- Spread Risk: A balanced portfolio with a mix of assets, including gold, can help reduce overall investment risk.
What Are the Premiums for 1/10 Krugerrands?
Premiums for fractional gold coins are generally higher than for full-ounce coins due to the higher cost of minting smaller denominations. In 2025, the typical premium for a 1/10 Krugerrand ranges between 10% and 30% over the spot price of gold. The exact premium depends on factors such as:
- Market demand
- Dealer pricing
- Gold price volatility
- Production costs
It’s essential to compare prices from multiple dealers to find the best deal.
How to Spot a Counterfeit 1/10 Krugerrand
Like all gold coins, the 1/10 Krugerrand is occasionally targeted by counterfeiters. Protect yourself by learning how to identify fakes:
- Weight and Dimensions: The authentic 1/10 Krugerrand weighs 3.393 grams and has a diameter of 16.55 mm. Check these specifications with a precision scale and caliper.
- Sound Test: Real gold produces a distinctive ringing sound when gently tapped with another metal object.
- Magnet Test: Gold is not magnetic. If your coin is attracted to a magnet, it’s likely fake or contains non-gold metals.
- Professional Testing: Use an XRF analyzer or consult a reputable dealer to verify the coin’s purity.
What Makes the 1/10 Krugerrand a Great Gift Idea?
Gold coins like the 1/10 Krugerrand make for meaningful and valuable gifts for special occasions such as birthdays, weddings, or graduations. Its compact size and iconic design appeal to both collectors and casual recipients. Moreover, gifting gold symbolizes wealth, prosperity, and timeless value, making it a cherished keepsake.
Can You Add 1/10 Krugerrands to a Retirement Account?
Yes, in many cases, you can include gold coins like the 1/10 Krugerrand in a self-directed Individual Retirement Account (IRA) if they meet certain requirements. However, since the Krugerrand does not have a face value, some custodians may not allow it in retirement accounts. Always consult your financial advisor or IRA custodian to confirm eligibility.
The Role of Gold in 2025’s Economic Climate
With rising inflation, geopolitical tensions, and currency fluctuations expected in 2025, gold remains a safe haven for investors. The 1/10 Krugerrand allows you to participate in gold investing at a lower entry cost, giving you a tangible hedge against economic uncertainty.
Expert Tips for Buying 1/10 Krugerrands
- Check Spot Prices: Monitor gold’s market price to ensure you’re paying a fair premium.
- Buy in Bulk: Purchasing multiple coins may reduce the premium per coin.
- Verify the Dealer: Choose reputable dealers with positive reviews and accreditation.
- Look for Sealed Coins: Coins in mint-sealed packaging are more likely to retain their value and authenticity.
- Store Securely: Keep your coins in a safe place to protect their value.
FAQs About the 1/10 Krugerrand (Continued)
11. Can I barter with 1/10 Krugerrands?
Yes, fractional gold coins like the 1/10 Krugerrand are ideal for barter due to their small size and high value.
12. Is the 1/10 Krugerrand a legal tender coin?
Yes, in South Africa, the Krugerrand is considered legal tender, though it doesn’t have a face value.
13. What is the lifespan of a 1/10 Krugerrand?
Gold does not corrode or tarnish, so with proper storage, a 1/10 Krugerrand can last indefinitely.
14. Should I buy 1/10 Krugerrands or save for a full ounce?
It depends on your budget and goals. Fractional coins offer flexibility, while full ounces have lower premiums.
15. Do 1/10 Krugerrands hold their value over time?
Yes, their value is directly tied to the price of gold, which historically appreciates over the long term.
The 1/10 Krugerrand is a versatile and accessible way to invest in gold, providing both affordability and the security of owning a globally recognized bullion coin. Whether you’re a beginner or a seasoned investor, adding this fractional gold coin to your portfolio is a smart choice for 2025 and beyond.
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