Krugercoin is a digital version of Krugerrand.Originally named “The Trojan”, the Krugerrand was introduced in 1967 as a vehicle for private ownership of gold. At that time it was illegal for citizens of the United States to own gold bullion, but legal for them to own foreign coins. The Krugerrand was issued with legal tender status in South Africa[1], making it legal to be owned by Americans. It was actually intended to circulate as currency. Therefore it was minted in a more durable gold alloy, unlike most other bullion coins.
An ordinary coin has a fixed legal tender value which is stamped on its face, which is normally greater than the bullion value of its metal. Earlier gold coins such as the British sovereign had a fixed face value, which was originally more than, and later could be much less than the bullion value of the gold content.
The Krugerrand has no face value; its legal tender value is the bullion value of its metal at the current market price of gold. The Krugerrand was the first bullion coin to have this kind of legal tender value. It was also the first gold coin to contain precisely one ounce of fine gold.
Despite the coin's legal tender status, economic sanctions against South Africa for its policy of apartheid made the Krugerrand an illegal import in many Western countries during the 1970s and 1980s. These sanctions ended when South Africa abandoned apartheid in 1994.
When introduced, the Krugerrand was sold at a premium of five percent over its bullion value.
By 1980 the Krugerrand accounted for 90% of the gold coin market.[2] The success of the Krugerrand led to many other gold-producing nations minting their own bullion coins, such as the Canadian Gold Maple Leaf in 1979, the Australian Nugget in 1981, the British Britannia coin in 1987, and the American Gold Eagle in 1986.
Through 2008, Krugerrand coins containing 46 million ounces of gold have been sold.[3]
Source:
http://www.wikicoins.com/Krugerrand
