Krugerrand investors strike it rich after 30 years

GOLD has surged to record highs, and South Africans who bought Krugerrands 30 years ago have seen extraordinary returns.

- NICOLA MAWSON

Exactly 30 years ago, gold traded at about $384.65 an ounce. With the rand then averaging R3.63 to the dollar, a 1 oz Krugerrand cost roughly R1 397 at the time. Fast forward to today, and gold is trading at a record-breaking $4,035.70 an ounce, with the rand at R17.16 to the dollar.

That puts the same coin’s value at about R69 253 — a 50-fold increase in nominal terms. When South African inflation is stripped out, the 1995 price in today’s rand would be around R7 137, meaning the Krugerrand’ real value has grown nearly tenfold over the past three decades.