Of the 39 bullion coins made of precious metals currently in use, 18 of them are made of gold, while the rest are made of silver, platinum and palladium.
The Krugerrand, which is South Africa's bullion gold coin is one of the most popular in the world today.
The name of the 5th President of the South African Republic is Stephanus Jonannes Paulus Kruger.
And Rand is the name of the currency of South Africa.
A combination of these two names was used to coin the term "Krugerrand".
There are 4 different kinds of Krugerrand.
The one-tenth ounce coin, the quarter ounce coin, the half ounce coin and the one ounce coin.
The first one weighs 0.
11 troy ounce; the second weighs 0.
27 troy ounce; the third weighs 0.
55 troy ounce; and the fourth weighs 1.
09 troy ounces.
They come in different thicknesses and diameters.
Pure 24K gold is too soft and cannot be used for making coins or jewelry.
Coins especially go through a lot of wear and tear as they are used by millions of people everyday.
Therefore, they need to be made stronger and wear-resistant by mixing gold with some other metal.
The Krugerrand coins are therefore made of 91.
67% pure gold mixed with 8.
33% copper, resulting in 22K gold.
This makes the coins more resistant to scratches and dents as the metal is now harder and more durable.
A number of other countries like the US, Canada, the UK and Australia also have their own coins made from precious metals.
The success of the Krugerrand in promoting the gold of South Africa in the international market has probably encouraged the other countries to come out with their own precious metal coins.
By the end of 2008, South Africa had used more than a million kilograms of gold in producing its Krugerrand coins.
Krugerrand coins are made only from gold.
However, coins made of silver and made to look like Krugerrands are sold in the market.
These coins are not original and are not sanctioned by the South African government.
Proof Krugerrand coins are produced as special collector items.
These special samples cost more than the normal bullion coins.
While the normal coins have 180 serrations around them, the special proof coins have 40 more serrations to distinguish them from the others.
Both coins have the face of former President Kruger on one side and the image of a South African antelope called the Springbok on the reverse side.