Beware many auctions offering these as "Miniature Krugerrands", 999 Fine Gold, and other dodgy descriptions.
Obverse & Reverse of 2005 Liberia 14 Carat Gold $10 Proof Coin - 25th Anniversary of Krugerrand
Quite why anybody would want to buy one of the world's smallest gold coins, we don't know. OK, we could understand a collector buying an ancient coin, or a real coin, made for circulation, with some historical significance attached to it. We can also understand collectors and investors who buy large coins, or specially produced collectors' coins providing they possess some attractive or interesting feature, perhaps a beautiful design, high relief engraving, or numismatic aesthetic appeal, but this coin struggles to provide any sensible reason for intelligent people to desire one.
Perhaps it started as a wager in the marketing department of some numismatic issuing house. You can imagine the scenario, perhaps on a hot Friday afternoon, too late to start any real work. Somebody idly asks what the worst product they have ever successfully marketed. Perhaps it was a personal challenge to a marketing superstar. Hey, Eric, could you get people to buy the world's smallest gold coins? They would be very cheap to make, and appeal to people with very little money, because we could sell them for next to nothing, and still make great profit margins.
Well, here is the result!
We will be returning to this page soon, to add a few more comments, it's quite difficult to describe our true feeling about these pathetic excuses for coins without descending to the use of obscene language.
Actually one other feature we ought to admire, apart from the marketing men's chutzpah, is the thinness of these coins, at about 0.6 mms.
Front & Back Covers of Certificate + Inner Pages
The coin comes with a small piece of paper which describes itself as a certificate of authenticity.
The piece of paper isn't large enough or soft enough for a better purpose, but overstates the weight as .50 grams, now we may be being overcritical, but we only got it to 0.49 grams (we used a high precision diamond carat balance, which weighs to one thousandth of a metric carat = 1/5,000 of a gram), this is a 2% error, perhaps not much, but it would have been nice if it had been 2% in the customer's favour.
It also states it to be of .585 gold, we do not believe it worthwhile to have this verified by an assay office, but as the weight was wrong, there is no guarantee that the fineness would be accurate, after all, who is likely to check?
Interestingly, the "certificate" does not bear the name or other contact details of its issuer, although there is a shield logo. Whoever had the gall to issue these coins, or promote them, obviously decided discretion was the better part of valour when it came to owing up, and putting their name on the certificate.
We will copy the specification table from our website, although it won't format well because eBay don't allow us to use html formating:
Denomination Diameter Weight Fineness Gold Content
10 Dollars 11.5 0.4900 grams .585 .0.0092 troy ounces
This works out that you would need more than 108 of these "coins" to have one ounce of gold.
At current gold prices, this makes the gold content worth about $6 / £3.
Conmen & Crooks
Although we don't have a high opinion of the coins, or of the people who originally issued them, we have an even lower opinion of the numerous people who flog these these things on eBay and elsewhere as miniature krugerrands, and assorted other dodgy descriptions.
As we wrote this one eBay auction described them as :
Gold Coin 25th Anniversary Krugerrand South Africa 10 $
South Africa 25th Anniversary of Krugerrand 10 $ Liberia 2005 solid 24 ct. 0.5 gram diam.: 11 mm GOLD .999/1000 in Original Capsule proof rare
(We guess he either "lost", threw away, or ignored the certificate).
One regular seller, who has been flogging these for about a year now lists them as:
SOUTH AFRICA GOLD KRUGERRAND MINITURE
YOU ARE BIDDIND ON A SOUTH AFRICA MINITURE GOLD COIN IT IS THE SIZE OF A PILE BUT LOOK LIKE A KRUGERRAND WAS MADE IN 1980 IN A BEAUTFIELD BLUE VELVET CASE IT WAS FOUND IN A BASEMENT STORED SINCE 1980 I HAVE 50 PEACES THESE ARE REPLIACA OF THE 1 OZ GOLD BUT THEY ARE IN GOLD
(Actually, because his photograph is so bad, it's not possible to tell whether his coin is similar to ours, or one of a number of other imitation krugerrands being touted around to gullible buyers). We hope he invests the proceeds in a dictionary or some English lessons.
Even worse, in its way, is an offer as we wrote this, to sell one, on Craig's List, at $75!
In our opinion, these coins are best avoided. At worst, if you for some reason you wanted to own one, a fair price would be about $10. Strange as it may see, we don't actually want to sell the only specimen we currently own, it's quite a good example of a truly awful coin, and of what not to buy, or collect, and certainly not to invest in!
We hope this guide has been helpful or useful. It is one of a large number we have authored, many aimed at protecting potential buyers from being ripped off, duped, or bamboozled.
You may be interested in viewing our other guides:-
CGT Capital Gains Tax Exemption on Gold Sovereigns Britannias UK Coins
How to Photograph Coins - Advice, hints, tips & more...
Author & Copyright Notice
This page was written by Lawrence Chard of Chard Coins