The tale of two versions
Something that comes up a lot is the question of the Proof Krugerrand. Let us look at the two different versions of this world-renowned coin. (Images included : 6k)
Bullion Krugerrand:
We often refer to a ‘normal’ Krugerrand as ‘Bullion’. This is your stock standard 22 carat gold coin that is in common circulation. Millions upon millions of Krugerrands have been produced since 1967, and has become so well known that it is a brand name these days. Investors always buy Bullion, never Proof.
Proof Krugerrand:
This is the ‘pretty’ version of the Bullion Krugerrand. It is produced as a Proof coin and is presented in a leatherette box with accompanying certificate. These are often bought as gifts e.g. to commemorate a wedding or a baby’s birth.
The main difference between these two versions is pricing. In fact, except for appearance and presentation, it is the only difference. Both versions are 22 carat gold.
A Bullion Krugerrand’s price is directly linked to the current Gold price and Rand/Dollar exchange rate. It changes on a daily, and sometimes even hourly, basis. A Proof Krugerrand is not linked to these indicators; they are sold at a set price, which will always be higher than the Bullion price. Many dealers will pay the same for both versions i.e. at their normal Bullion buyback price.
The one exception is the 1968 Proof Krugerrand, sometimes referred to as the ‘frosted’ 1968 Krugerrand. It was produced in such limited numbers that it has become sought after by collectors and investors alike. Great caution must be exercised before purchasing a Frosty. There are shiny ‘68s out there that some people try to pass off as Proof, but are in fact just normal shiny Bullion Krugerrands.
So there you have it: Bullion for the serious stuff, and Proof for the pretty stuff.
Krugerrand Bullion
Krugerrand Proof
