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arobus

2017 Proof Krugerrands

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arobus

I'm a young enthusiast collector of international coins and notes of all sorts, particularly South African stuff. I've been interested in the 50th anniversary Krugerrand coins minted in 2017 since they were released but never bought any, especially as only the smallest few are affordable enough. I've saved a decent money to purchase some coins in the near future and wondered what anyone more experienced thought about the aforementioned Krugerrands - I often hear people talk about modern gold being overpriced. I'm interested in either buying the 1/50th and 1/20th novelty sizes introduced that year or the fractional set of those two and a 1/10th that's popped up around BoB lately - the 1/10th alone seems incredibly overpriced at R3800 from the mint when the same denomination in proof from a previous year sells closer to R2000!

I should clarify that I'm not primarily interested in gold as an investment, I think of coins as items I collect for my enjoyment that may hold some of their value in the long term - I intend to study in Canada in about 2 years time and if they hold some resale value they may come in handy should I become strapped for cash, though I want to emphasise that I am NOT counting on assets as non liquid and risky as coins to fund my future. If my coins depreciate by a few percent over the years that's fine, as I get something out of owning them, I'd just rather avoid buying something for twice its value in the future (hence my concern about the modern Krugerrand proofs as they're usually above 2x their melt value anyway)

I guess my ultimate question is: if I spend a bunch of money buying modern proof Krugerrands now, how will they hold their value into the next few years and is it still a waste of my money if I get enjoyment out of simply owning them?

(Sorry for the rambly post and if making a new thread just for asking this is out of line, I couldn't find much existing related talk here)

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14 hours ago, arobus said:

I'm a young enthusiast collector of international coins and notes of all sorts, particularly South African stuff. I've been interested in the 50th anniversary Krugerrand coins minted in 2017 since they were released but never bought any, especially as only the smallest few are affordable enough. I've saved a decent money to purchase some coins in the near future and wondered what anyone more experienced thought about the aforementioned Krugerrands - I often hear people talk about modern gold being overpriced. I'm interested in either buying the 1/50th and 1/20th novelty sizes introduced that year or the fractional set of those two and a 1/10th that's popped up around BoB lately - the 1/10th alone seems incredibly overpriced at R3800 from the mint when the same denomination in proof from a previous year sells closer to R2000!

I should clarify that I'm not primarily interested in gold as an investment, I think of coins as items I collect for my enjoyment that may hold some of their value in the long term - I intend to study in Canada in about 2 years time and if they hold some resale value they may come in handy should I become strapped for cash, though I want to emphasise that I am NOT counting on assets as non liquid and risky as coins to fund my future. If my coins depreciate by a few percent over the years that's fine, as I get something out of owning them, I'd just rather avoid buying something for twice its value in the future (hence my concern about the modern Krugerrand proofs as they're usually above 2x their melt value anyway)

I guess my ultimate question is: if I spend a bunch of money buying modern proof Krugerrands now, how will they hold their value into the next few years and is it still a waste of my money if I get enjoyment out of simply owning them?

(Sorry for the rambly post and if making a new thread just for asking this is out of line, I couldn't find much existing related talk here)

Hi Arobus

I do not collect gold and thus do not have any experience on it, but please allow me to throw in my 2 cents. 

Have you thought about where you would dispose your proof krugerrands if ever the need arose or when you felt you investment matured? Whether it be a local coin shops, coin conventions, online platforms or private sales, you should look at all of these platforms and see how the coins you are interested in investing are currently performing and have done so over the last few years. 

I would consider proof krugers a niche market as with the modern gold proof sovereigns so you need to establish where would be the best platform to enter that niche market.

When it comes down to it nobody can tell the future on whether an investment will appreciate or not, but you can make an educated decision based thorough research before acting. 

All the best!

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To add to what I said earlier. 

When looking at historical and current performance, don't forget to compare proof to uncirculated and other commemorative gold coins of the same weight. Look at their price and mintage as well as unique characteristics around the coins. 

For example do proof krugers trade a considerable premium above uncirculated krugers and what was the price difference between them when they were purchased. 

By just looking at Bidorbuy's recent buys, I see 1 ounce gold proof proteas (commemorative coins) from the 1980's have sold for similar prices to their krugerrand counter parts.

I most certainly would be interested to know what the price difference between these lower mintage proteas and normal krugers were back in the 80's. 

Now granted the 2017 proof range has a unique aspect to it as it has a 50th anniversary privy mark, which could allow for appreciation well above the normal proof years. This can be seen with the 1967 krugerrand which has the first of it's kind connotation to it.

As I mentioned before only time can tell, so the best you can do is make an informed, well researched decision. 

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arobus

Thanks for your input, I'll certainly look into it. I agree that the 50th anniversary aspect might give the 2017 Krugers some advantage over regular proofs, but I'm still uncertain due to their increased based price from the Mint. Perhaps I'll see if I can find any historical pricing information to compare how they perform at least within RSA.

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20 hours ago, arobus said:

Thanks for your input, I'll certainly look into it. I agree that the 50th anniversary aspect might give the 2017 Krugers some advantage over regular proofs, but I'm still uncertain due to their increased based price from the Mint. Perhaps I'll see if I can find any historical pricing information to compare how they perform at least within RSA.

If you find that are not getting the historical pricing that you are looking for, a lengthy option could be to look at sales reviews on long established dealers and sellers, as many of their review ratings go back years. I do not know whether other online platforms retain these ratings but BOB does. It's a tedious process but it provides great insight. When going back years you also need to take into consideration the economic and market factors at that time period. Research is tiresome, but you will have assurence in your decisions. 

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Pierre_Henri

Proof Kruger Rands sell currently for approx. 14.7% above the normal bullion price.

 If this will change in future, I have no idea. 

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