When planning your emigration, you’ve probably already considered things like relocating your pets, moving your furniture, packing your belongings and shipping your artwork. But when it comes to your financial assets, there are a number of things that you might not yet have considered. If you own Krugerrand coins, and you’re wondering what you need to do with them in preparation for your international relocation, we’ve put together a handy guide to ensure you’re well informed as to the dos and don’ts when it comes to leaving the country and staying on the right side of South African customs regulations.
What are Krugerrands?
In case you didn’t already know, Krugerrands are South African gold bullion coins. They were first minted in 1967 and have become one of the most popular gold coins in the world. 1 Ounce Krugerrand coins are made with 91.67% gold and 8.33% copper, and weigh 33.93 grams.
These weighty coins get their name from a portmanteau of the name of the former president of the South African Republic (Paul Kruger), and the South African rand, hence ‘Krugerrand’. On the obverse of the coin (that’s the head) you will find a stately portrait of Kruger, while the reverse (that’s the tail) features South Africa’s national animal, the springbok. Krugerrands were originally introduced in the late sixties to help market South African gold and quickly became popular among investors. By 1980 they accounted for 90% of the global gold coin market. Krugerrand coins remain popular today, and are a solid investment for individuals looking to diversify their portfolios.
Here are some of the reasons why Krugerrand coins are so sought-after for investors:
- They are a well-recognised and trusted form of gold bullion.
- They are relatively liquid, and can be easily bought and sold.
- They represent a practical way to diversify your portfolio.
- They offer an affordable way to own gold.
What is a Krugerrand coin worth?
Now, to get to the important stuff. The value of a Krugerrand coin fluctuates based on the current spot price of gold. For example, if the spot price of gold is $1,773.60 per ounce, this means that a 1ounce Krugerrand coin is worth approximately $1,606.24.
The value of a Krugerrand coin can also be affected by other factors, such as the size of the coin, its condition (uncirculated versus circulated) and whether or not it is a proof coin. Individuals in South Africa looking to buy Krugerrand coins have the option to do so through a bank. The advantage here lies in the bank’s commitment to repurchase the Krugerrand coins at any time, ensuring that they are easily convertible into cash. This feature adds a convenient liquidity aspect to the process.
How many Krugerrand coins can you take out of South Africa when you emigrate?
The maximum allowable amount of Krugerrand coins to be taken out of the country is capped at R30,000. Exchange control approval from the Financial Surveillance Department of the South African Reserve Bank is required to export Krugerrand coins with a value of more than R30 000. Due processes must also be followed to declare the coins in your possession to the South African Revenue Service, Customs and Excise on your departure from South Africa.
FinGlobal: cross-border financial specialists and authorised dealers
To ensure your financial transition is handled smoothly, including the export of your Krugerrand coins, it’s advisable to engage with the specialists before your move. FinGlobal can assist you every step of the way, with tax clearance, foreign exchange, tax emigration and more.
If you’re interested in learning more about our trusted services, please leave your contact details in the form below and we’ll be in touch to discuss your requirements.