Gold coins have been a timeless investment, offering both security and liquidity. Among the most famous gold bullion coins in the world is the South African Krugerrand, first minted in 1967. While the standard 1 oz Krugerrand is well-known, the 1/10 oz Krugerrand provides a more affordable entry point for investors.
But is the 1/10 oz Krugerrand a good investment? How does it compare to other gold coins? Let’s dive into everything you need to know.
What is a 1/10 oz Krugerrand Coin?
The 1/10 oz Krugerrand is a fractional version of the original 1 oz Krugerrand, containing 0.10 troy ounces (3.11 grams) of pure gold. It was introduced in 1980 along with the ½ oz and ¼ oz versions to make gold investment more accessible.
Quick Facts About the 1/10 oz Krugerrand:
✔ Composition: 91.67% gold (22K), 8.33% copper (for durability)
✔ Weight: 3.39 grams (0.1097 troy oz total weight)
✔ Diameter: 16.5 mm
✔ Thickness: 1.35 mm
✔ Face Value: No official face value (but legal tender in South Africa)
Unlike other gold coins like the American Gold Eagle or the Canadian Gold Maple Leaf, the Krugerrand does not have a face value. Instead, its value is based purely on its gold content and market price.
History of the Krugerrand Coin
The Krugerrand was the world’s first modern gold bullion coin, introduced by the South African Mint and Rand Refinery in 1967. It was designed to help promote South Africa’s vast gold reserves.
- Named after Paul Kruger, the former South African President, and the country's currency, the Rand.
- The Krugerrand dominated the gold coin market until the 1980s, when U.S. sanctions against South Africa (due to apartheid) led other countries to create their own gold bullion coins (e.g., American Gold Eagle, Canadian Maple Leaf).
- Today, it remains one of the most recognized and widely traded gold coins in the world.
Design of the 1/10 oz Krugerrand
Like its 1 oz counterpart, the 1/10 oz Krugerrand features the same iconic design:
Obverse (Front Side)
👤 Portrait of Paul Kruger, the former President of South Africa (1883-1900).
📜 "SUID-AFRIKA" & "SOUTH AFRICA" (in Afrikaans & English).
Reverse (Back Side)
🦌 Springbok antelope, South Africa’s national animal.
📅 Year of minting split on both sides of the Springbok.
📏 "1/10 KRUGERRAND" and gold content inscription (e.g., "1/10 oz FINE GOLD").
The copper content in the coin gives it a distinctive reddish-gold color and makes it more resistant to wear compared to pure gold coins like the Canadian Gold Maple Leaf (which is 24K).
How Much is a 1/10 oz Krugerrand Worth?
The value of a 1/10 oz Krugerrand is determined by the spot price of gold and a small premium charged by dealers.
- If gold is trading at $2,000 per ounce, then a 1/10 oz Krugerrand would be worth around $200 (before premiums).
- Dealer premiums typically range from 5% to 15%, meaning the actual cost might be $210-$230.
Since Krugerrands do not have a fixed face value, their price is entirely tied to the gold market.
🔹 Tip: Always compare prices from reputable dealers like EE.Gold to get the best rate when buying or selling.
Is the 1/10 oz Krugerrand a Good Investment?
Yes! The 1/10 oz Krugerrand is an excellent choice for:
✅ Beginner Investors – A low-cost entry into gold ownership.
✅ Portfolio Diversification – Adds a tangible, stable asset to your portfolio.
✅ Liquidity – Easily traded, bought, or sold worldwide.
✅ Collectibility – Small fractional coins are popular among collectors.
However, larger Krugerrands (like the 1 oz version) usually have lower premiums per gram. If you're investing long-term, buying bigger sizes might offer better value.
How to Buy 1/10 oz Krugerrand Coins
Where to Buy
- Online Dealers – Trusted platforms like EE.Gold offer competitive prices and secure transactions.
- Local Coin Shops – Good for inspecting coins in person.
- Gold Shows & Auctions – Sometimes offer rare or collectible pieces.
Things to Watch Out For
✔ Buy from reputable dealers – Avoid shady marketplaces like eBay (high risk of counterfeits).
✔ Check for authenticity – Look for proper weight, diameter, and edge reeding.
✔ Compare premiums – The smaller the coin, the higher the premium, so shop smart.
FAQs About the 1/10 oz Krugerrand
1. Is the 1/10 oz Krugerrand pure gold?
No, it is 91.67% gold (22K) and 8.33% copper for durability.
2. Why does the Krugerrand not have a face value?
It is priced solely based on gold content rather than having a fixed denomination.
3. How much gold is in a 1/10 oz Krugerrand?
It contains 0.10 troy ounces (3.11 grams) of pure gold.
4. How much does a 1/10 oz Krugerrand cost?
The price depends on the gold spot price plus a dealer premium (usually 5%-15% above spot price).
5. Is the Krugerrand legal tender?
Yes, but it doesn’t have a fixed face value—its worth is based on its gold content.
6. What’s the difference between a 1/10 oz Krugerrand and an American Gold Eagle?
Both are 22K gold coins, but the Krugerrand has no face value, while the Gold Eagle is backed by the U.S. government.
7. Do Krugerrands hold their value?
Yes! Since they are globally recognized bullion coins, they maintain strong resale value.
8. Should I buy a 1/10 oz or a 1 oz Krugerrand?
If you want affordability and flexibility, go for 1/10 oz. If you want lower premiums and long-term value, go for 1 oz.
9. Can I sell my 1/10 oz Krugerrand easily?
Yes! Krugerrands are highly liquid and easily sold at coin shops, online dealers, and gold exchanges.
10. Where can I buy a 1/10 oz Krugerrand?
Buy from trusted sources like EE.Gold for authenticity and the best pricing.
The 1/10 oz Krugerrand is a smart, flexible investment, offering affordability, liquidity, and long-term value. Whether you're stacking gold or starting small, it’s a solid choice. Ready to buy? Check out EE.Gold for secure gold purchases!
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