One of the most popular choices for gold investors is buying gold bullion coins. The South African Krugerrand and Canadian Maple Leaf are two of the best-known options- but which is the better investment?
Here is an overview of each gold coin- along with a side-by-side comparison of the key considerations and a few other things worth knowing before investing in either one.
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What Will I Learn?
- Choosing Between Popular Gold Bullion Coins
- Krugerrand VS Maple Leaf
- What Are the Main Differences Between Krugerrand and Maple Leaf Gold Coins?
- What One Is the Better Investment?
- Things to Consider Before Investing in Gold Bullion Coins
- Where to Buy South African Krugerrand Gold Coins
- Where to Buy Canadian Maple Leaf Gold Coins
- Final Thoughts
Choosing Between Popular Gold Bullion Coins
There are many different gold coins out there- from the famous American Gold Eagle Coin to more obscure mint-issued gold coins from around the world.
People often choose to convert part of their retirement savings funds into physical gold through Gold IRA accounts- and gold coins are a great way to do it.
Gold Krugerrand coins are up there with Gold Eagles as the most popular gold bullion coins investment choices, with the Maple Leafs coming not far behind.
Picking the right gold bullion coin to invest in involves several considerations.
This guide focuses on the difference between the Krugerrand gold coin and the Maple Leafs and what types of investors they are best suited to.
Krugerrand VS Maple Leaf
Gold investors and coin collectors have most likely heard of these two gold bullion coins- so which one is the best choice? The Gold Krugerrand and Canadian Maple Leaf are both worth considering, but there are a few differences to think about.
About the South African Krugerrand
This South African mint coin features the icon springbok antelope and Paul Kruger- a former president of the country for whom the coin is named.
It is a legal tender coin- meaning it can be used to pay for goods rather than being simply an investment item.
Additionally, it is made from gold mined in South Africa- so buying Krugerrands puts money back into the country’s economy.
South Africa Gold Krugerrands are one of the most widely circulated bullion coins in the world- with more than 40 million worldwide. It is known for its size, weight, and distinctive design and is a top choice for gold coin investors.
About the Canadian Maple Leaf
Much like the iconic three-pronged leaf, the Canadian Gold Maple Leaf bullion coin is a national symbol of pride. Since its official release in the late 80s, it has gone through a few changes but remains a staple bullion coin in the country’s economy.
Ultra-pure and instantly recognizable, this gold coin features the nation flower of Canada- the maple leaf- and an image of Queen Elizabeth II on her throne.
What Are the Main Differences Between Krugerrand and Maple Leaf Gold Coins?
The Krugerrand was minted by the South African mint and the Maple Leaf was minted by the Royal Canadian mint.
Although the weights are similar, Krugerrand coins are slightly heavier (1.09 OZ and 1 OZ).
Both coins have unique images- Gold Krugerrands with a springbok on one side- and Paul Kruger on the other, and Maple Leafs with an image of a maple leaf on one side and Queen Elizabeth II on the other.
The Canadian Maple Leaf is purer (99.99%) – one of the purest coins on the market today- but it is actually made of silver. Krugerrands are 91.67% pure gold.
Krugerrands were minted earlier- in 1967. Maples were minted in 1979.
Maple Leafs are not legal tender, but South African Gold Krugerrands are.
The price of the Krugerrand fluctuates according to supply and demand, but the Maple Leaf has a fixed rate per ounce.
What One Is the Better Investment?
These are two very different coins, so it is tough to compare them and say one is outrightly better than the other.
Investors looking for a coin with a better value appreciation potential are better with the Maple Leaf- but collectors who have an interest in coins with a colorful history and rare collectors’ options may find more of what they are looking for in the Krugerrand.
Suggested Reading: What is My Old Coin Worth?
Benefits of Gold Krugerrand Coins
Krugerrands are fine gold coins, so they have a better price for their weight.
The Krugerrand has changed many times over the years, so there are collectible editions with varying rarity.
They can be used in South Africa to pay for goods, so they are multifunctional.
Buying Krugerrands supports and benefits the South African economy.
Benefits of Canadian Gold Maple Leaf Coins
Investors don’t need to worry about currency value fluctuation as the coin has a fixed price.
The Maple Leaf has a long-standing history of reliable appreciation and is considered one of the safer gold bullion coins for beginners.
They are easy to find through various reputable sources.
Things to Consider Before Investing in Gold Bullion Coins
Coin collectors and investors alike have a few things to think about before buying any gold coins- be they Maples, Krugerrands, American Gold Eagles, or any other gold bullion.
All precious metals investments should be made after careful consideration- here are a few of the specific things to think about when it comes to silver and gold bullion coins.
Value and Fluctuation
Of all the considerations a person should make regarding gold coin investments, the cost and value of the coins should be amongst the first.
Some collectors are not really in it for the profit potential, but it is still something to think about- especially to know whether or not they are getting a fair price.
Some coins fluctuate in value- particularly ones like the Krugerrand gold coin that are legal tenders and depend on supply and demand- while others, including the Maple Leaf, have a fixed price that can appreciate or depreciate over time.
It is worth looking at the value history of whatever coin you are interested in for an idea of what to expect.
Rarity and Collectability
Many gold bullion coins are readily available from multiple sources these days- but some are still comparatively rare.
Collectors tend to prefer rarer gold and other bullion coins, but they are not necessarily better investments profit-wise.
Neither the Maple Leaf nor the Krugerrand is a rare coin today, but there are older versions that are not as widely circulated. The Krugerrand in particular has several rare mints to choose from.
The way bullion coins look may not make all that much difference to investors who are looking for the best way to make a profit, but it is interesting from a collector’s point of view.
Gold bullion coin designs vary significantly- and some have multiple editions of the same coin from different years and occasions.
Aesthetically, both the Krugerrand and the Maple Leaf are great, although the Krugerrand is more unique and intricate. Lots of coins feature Queen Elizabeth- but very few have a springbok on them!
There are also several mints that have changed over the years, so it is a collector’s dream.
Storing the Coins
There are several ways to store gold bullion coins. Investors buying large amounts may have to open a special IRA account – called a gold IRA – if they want to get the most out of their precious metal savings- they can do so through many providers and banks.
Some banks have vaults to store coins and other gold and silver assets, while others only have safety deposit boxes. Vaults are preferable for safety reasons- and can hold more significant amounts for bigger investors.
Maple Leaf coins and Gold Krugerrands are both easy to store, but the costs may vary depending on the bank account or private service provider.
Where to Buy South African Krugerrand Gold Coins
Krugerrands are available from most leading online gold dealers and local coin stores.
Every coin comes with a certificate of authenticity to verify its validity and confirm the gold purity. Before buying, always confirm this certificate is provided.
Where to Buy Canadian Maple Leaf Gold Coins
The most reliable place to buy Canadian Maple Leafs is through the Royal Canadian Mint, but there are plenty of other places to shop.
Online gold dealerships are likely to sell them- and you can even find them through e-commerce sites and third-party sellers such as eBay and Amazon.
Both the Canadian Gold Maple Leafs and the South African Krugerrands are great choices of investments for people looking to purchase gold bullion coins.
They are similar in popularity and length of history but differ in many ways.
The gold content and purity are not the same, and the styles of investors they suit best are close to opposites. To say which is the better choice depends on the person asking.
In short, the Maple is the better choice for a safer, more reliable long-term investment for a hopeful appreciation- but the Krugerrand has far more appeal as a collector’s coin and has a particularly iconic design.
Whatever coins a person finds appealing, they should always think about the gold content, rarity, value potential, and how to store it.
From there, the world of international and American gold coin investing and collecting is a vast and exciting world.