Gold Over 2,000 Euros Per Ounce: Investors Discover the Predecessor of the Krugerrand
by Sebastian Wieschowski
In recent weeks, gold has jumped from one high to the next, surpassing the 2,000 euro mark per ounce, which is the barrier for anonymous gold purchases in Germany. This development has led to the popular Krugerrand gold coins no longer being available for anonymous over-the-counter purchases. Consequently, many investors are compelled to look for more affordable alternatives. One such alternative that is gaining increasing popularity is the South African 2 Rand gold coin.
The 2 Rand gold coin, minted exclusively between 1961 and 1983, is considered a precursor to the world-famous Krugerrand. This coin offers an interesting option for investors who are interested in the history and cultural significance of their investments. The Krugerrand, known for its depiction of the Springbok antelope on the reverse side, shares this iconic symbol with the 2 Rand gold coin, making it appealing to both collectors and investors.
The 2 Rand coin features a portrait of Jan van Riebeeck, the first administrator of the Dutch Cape Colony, on the obverse. Van Riebeeck is a historical figure known for founding the city of Cape Town in 1652. The reverse of the coin, like the Krugerrand, displays the Springbok antelope, a symbol of national pride and a deep connection to South African nature and wildlife. The rise in the price of gold and the resulting search for cost-effective alternatives have heightened interest in historical and less well-known gold coins such as the 2 Rand coin. For investors, this coin offers not only potential value appreciation but also the chance to own a piece of South African history.
The fine weight of the 2 Rand gold coin is 0.235 ounces, making it comparable in weight and gold content to the British Sovereign. This similarity makes the coin attractive to international gold investors who value the stability and resale value of their gold holdings. They are increasingly turning to so-called "bullion coins," which include the 2 Rand coin. The term "bullion coin" derives from the German word "kurrant," meaning "current" or "circulating." This designation was used because these coins circulated at their face value and were not traded above their metal value. In contrast, token coins had a lower metal value than their face value and were mainly used for smaller transactions.
In times when paper money was not yet widespread or stable enough, bullion coins provided a reliable basis of value for larger transactions and state dealings. These coins were often magnificently designed and featured portraits of reigning monarchs or significant national symbols, giving them a propagandistic function as well.
Another example of a well-known and highly demanded bullion coin is the British Sovereign, first minted in 1817 under King George III. With a fine gold content of nearly 100%, the Sovereign served not only in the United Kingdom but also worldwide as a stable currency, especially in the countries of the British Empire. In continental Europe, the French Louis d’or and the German Reichsgoldmünzen, minted in various denominations, were prominent examples of bullion coins. These coins circulated far beyond the borders of their respective countries and played an important role in international trade.
Sebastian Wieschowski has been collecting coins since childhood and, after working as a journalist with a focus on finance and economy, has switched his focus on coins and precious since 2012. He is the author of several self-published books on Bullion Coins, Panda Coins, Fake Coins and Coin Grading and works for numismatic magazines. He is also a recurring expert on the German television program Münzengalerie (Coin Gallery), the longest running numismatic television show in the world. You can find out more about his work at coinosseur.com
