Krugerrand coins have been around for over five decades, earning a global reputation as reliable, accessible gold bullion. Yet despite their long history, there are still many myths and misconceptions surrounding them. From doubts about their value to confusion about their legal status, these myths can mislead new investors or deter others from selling at the right time.

If you’re considering Krugerrands as part of your gold portfolio, it’s crucial to separate fact from fiction. Understanding the truth can help you make better financial decisions and avoid unnecessary risks.

If you already own Krugerrands and are thinking about selling, now is a good time to sell Krugerrand coins in the UK through a trusted buyer offering fair prices and secure transactions.

Myth #1: Krugerrands Are Not Real Gold

One of the most common myths is that Krugerrands aren’t pure gold. This belief usually stems from confusion over their gold content and colour.

The truth is, each 1 oz Krugerrand contains exactly one troy ounce of fine gold. The coin itself weighs slightly more than an ounce because it’s made from a 22-carat gold alloy. This alloy includes a small amount of copper to make the coin more durable and resistant to scratches.

That added strength is actually a benefit. It protects your investment without taking away from its gold value.

Myth #2: Krugerrands Are Illegal to Own or Sell

Some people believe Krugerrands are illegal due to historical trade restrictions. While it’s true that the US banned the import of Krugerrands during the 1980s due to South Africa's apartheid regime, that ban was lifted in 1994.

Today, Krugerrands are completely legal to own, buy, and sell in the UK and in most parts of the world. There are no restrictions on private ownership, and these coins remain one of the most widely traded forms of gold bullion available.

Myth #3: Krugerrands Are Difficult to Sell

This myth probably comes from a misunderstanding of how bullion markets work. Krugerrands are actually known for their liquidity. Because they are so widely recognised, many dealers are happy to buy them on the spot.

Selling them is simple. A trusted gold dealer will verify the coin’s weight and condition, offer a market-based price, and arrange quick payment.

If you’re ready to unlock the value of your coins, you can easily sell Krugerrand coins through reputable UK buyers who specialise in gold bullion.

Myth #4: Krugerrands Have No Collectible Value

While Krugerrands are primarily bullion coins, some editions do have collectible interest. Proof Krugerrands, for example, are minted in smaller quantities and often feature detailed finishes and presentation packaging.

Older or limited-edition Krugerrands can fetch higher prices among collectors. However, for most investors, the true value lies in their gold content and market-driven pricing.

Even if your coins aren’t rare, they remain a practical and trusted form of physical gold.

Myth #5: The Price of Krugerrands Is Fixed

Some assume Krugerrands have a set face value, like a £1 or £2 coin. In reality, Krugerrands do not have a face value because their worth is directly linked to the live market price of gold.

This means their value changes daily based on international gold prices. As gold rises, so does the value of your Krugerrands. This makes them a flexible and transparent investment, allowing you to time your sales for maximum return.

Myth #6: You Must Pay VAT When Buying Krugerrands

A surprising number of people believe they’ll be hit with VAT when purchasing gold coins. In fact, investment-grade gold coins like Krugerrands are VAT-exempt in the UK.

This exemption helps keep your upfront costs low, especially when compared to other assets or collectables that may come with tax burdens. That’s one of the reasons why physical gold continues to be a preferred hedge against inflation and market volatility.

Myth #7: Krugerrands Are Outdated Compared to Modern Coins

While newer coins like the UK’s Gold Britannia have modern designs and UK legal tender status, that doesn’t make Krugerrands outdated.

Krugerrands still offer all the benefits of a physical gold investment, liquidity, security, and consistent value. Their global recognition and long track record make them an easy choice for investors looking for stability and performance.

In fact, many experienced buyers still view Krugerrands as a cornerstone of their bullion collection.

Myth #8: Only Wealthy Investors Buy Krugerrands

You don’t need to be rich to own Krugerrands. While a full 1 oz coin might be a large purchase for some, fractional Krugerrands, like the 1/2 oz, 1/4 oz, and 1/10 oz options, are more affordable and just as reliable.

These smaller coins offer the same gold purity and recognisable design. They can be easier to store, sell, or trade, making them an ideal choice for new investors or those looking to gradually build their portfolio.

Myth #9: Selling Krugerrands Involves Complicated Paperwork

Some people hesitate to sell Krugerrands because they think the process will involve complex forms or tax documents. In reality, selling is usually straightforward. Reputable dealers ask for ID and may provide a basic receipt or invoice for your records.

As with any asset, you may have to consider Capital Gains Tax if your profits exceed the annual allowance. But there’s no endless red tape, and for most people, the process is quick and hassle-free.

Conclusion

Krugerrand coins have stood the test of time as a trusted, liquid, and globally recognised form of gold investment. Don’t let the myths surrounding them stop you from making informed decisions. Whether you’re holding Krugerrands for long-term growth or ready to cash in on today’s gold prices, knowing the facts will help you manage your investment wisely.