The National Mint in South Africa has left their mark on the precious metals investing world when they decided to create a gold coin as legal tender using a standardized single Troy ounce way back in 1967. This epiphany resulted in creating the bullion coin gold standard and it’s available more than any other in existence today. And the South African Krugerrand has more recognition because of the amount that have been minted, the attractive and timeless design, and that you can count on the fact that it contains 1 ounce of gold within the metal content.
The South African Mint, on the Krugerrand’s 50th anniversary, created two new versions of this classic coin in silver and platinum. And in the 50 years since they’ve originally released the gold Krugerrand, it’s looked upon internationally as a symbol of prestige and wealth. The platinum bullion version of the Krugerrand has received world recognition and prominence among investors of this precious metal throughout the world.
Suggested Reading: Top Gold Coins for Investors
History & Background: Platinum South African Krugerrand Coins
The Platinum Krugerrand in South Africa was only minted in 2017. In fact, this presents an exciting opportunity for investors to own the original edition of this coin since it’s the first and only option in the history of the Krugerrand. The proof mintage is extremely low at 1967 pieces in total. But the coins themselves are quite impressive because their fineness levels have reached .9999, which means they are nearly made of pure platinum. These exquisite coins are purchased with a certificate of authenticity and delivered within a presentation box made of red leatherette.
The Platinum Krugerrand’s name is originally derived from the first president of South Africa, President Paul Kruger. They combined the name Kruger with the name of South Africa’s official currency, which is called the Rand. Expectations from South Africa were truly surpassed because they started to mass-produce bullion at 75% of the total market during the 1960s and early 1970s. They are similarly positioned to control the platinum market right now, since they have this metal in abundance and there aren’t many significant platinum producers at this time.
Physical Characteristics of the Platinum South African Krugerrand Coin
The Platinum South African Krugerrand coin is struck as a proof coin. And they are only available with a 10 Rand face value from the original minting of the coin that took place in 2017. The South African Mint could definitely add different denominations and sizes in future years as they proceed to eventually mint new coins.
On the front or obverse side of the South African Krugerrand, you’ll notice a portrait of the original South African president named Paul Kruger. He is looked upon as a legend after his exploits during the Second Boers War where in a David and Goliath situation, he outmaneuvered his colonial masters from Great Britain. Even though the South African colonials lost these wars overall, Kruger held back the seemingly invincible Navy of Great Britain along with their revered Army and ascended as a national leader and folk hero for the country for many years. Surrounding the picture of Paul Kruger on the platinum coin is his name written in English and Afrikaans.
On the backside or reverse side of the platinum coin you’ll see a picture of the springbok antelope, which is a national symbol for the country. They designed this creature with impressively sharp details to memorialize nature and the political history of this country. Also on the reverse side, you’ll notice an inscription containing the coin’s fineness, platinum weight, and the year it was minted.
Platinum Krugerrand Specifications
The platinum variety of the Krugerrand is only available in one Troy ounce. The dimensions of this coin contain:
- 930 g of mass
- 8 mm in diameter
- 84 mm of thickness
- one Troy ounce platinum content
- .9999 fine pure platinum
Pricing Platinum South African Krugerrand Coins
The face value of the South African Krugerrand coins made of platinum says it is worth 10 Rand. But the intrinsic value of these bullion coins possesses much greater wealth. In fact, it is equivalent to the platinum spot price as well as a small premium to pay for the minting and circulation of these coins. But mostly the market value of these coins comes from the spot price of platinum because they are circulated a great deal and known around the world. Visit your favorite search engine to discover real-time platinum spot prices on the web.
Are Platinum South African Krugerrand Coins Allowed in IRA Accounts?
As far as precious metals IRA inclusion is concerned, the IRS in the United States is the final decider as to whether or not they permit certain bullion pieces in a self-directed precious metals IRA. According to their rules, accounts of this nature are only allowed to have pieces with extreme purity and minted by a government that they officially recognize.
To open a precious metals IRA account, you need to make an initial deposit of $5000 in order to purchase platinum with IRA approval. Or you can use the money to purchase palladium, silver, or gold that also has approval. Afterward, you can deposit $1000 in increments to make additional purchases.
But you came here to get the answer to a specific question. Are platinum South African Krugerrand coins allowed as investments in a precious metals IRA account in the United States?
Well, the IRS requires .9995 fineness and purity levels. According to the information we just learned, the platinum Krugerrand contains a purity level of .9999 so it qualifies the first hurdle. The second hurdle is also acceptable because these coins are struck in the official South African Mint, which is recognized by the Internal Revenue Service. And since the coin contains a true face value of 10 Rand, it isn’t looked upon as a collectible coin, which is also important since collectibles aren’t allowed as part of a precious metals IRA.
So the answer is yes, you can add the 2017 platinum Krugerrand coin to your precious metals IRA account. Find a reputable coin dealer in your area or purchase them directly from the South African Mint.