1/10 oz South African Mint Krugerrand Gold Coin

The Smallest Krugerrand, With the Longest Pedigree

The 1/10 oz Krugerrand packs the heritage of the world's original bullion coin into the smallest standard fractional size. Introduced in 1980, thirteen years after the 1 oz Krugerrand launched the modern bullion coin market, the 1/10 oz was one of three fractional sizes (alongside the 1/2 oz and 1/4 oz) added to meet demand from investors who wanted the Krugerrand's brand recognition at a lower price point.

Each coin contains exactly 1/10 troy ounce (3.11g) of fine gold in a 22-karat alloy with copper, giving it the same distinctive orange-gold colour as its larger siblings. The total coin weight is 3.393g, and at just 16.55mm in diameter, it is comparable in size to a UK 5p coin. That copper alloy has a practical benefit at this scale: the coin is harder and more scratch-resistant than equivalent .9999 fine fractional coins from other mints, which matters for a piece this small that is likely to be handled frequently.

The Krugerrand name carries weight with dealers worldwide. Over 60 million Krugerrand coins have been sold since 1967, making the name instantly recognisable from Johannesburg to London to New York. That recognition translates directly to liquidity. A 1/10 oz Krugerrand will find a buyer at any reputable dealer, which is not always true of lesser-known fractional coins. For buyers looking at 1/10 oz gold coins as a category, the Krugerrand is one of the most established options alongside the 1/10 oz American Gold Eagle and the 1/10 oz Gold Britannia.

The trade-off with any 1/10 oz coin is the premium. Manufacturing costs for striking, quality control, and packaging are nearly identical to a 1 oz coin but spread over one-tenth the gold content. Premiums on the 1/10 oz Krugerrand typically run 10-18% over spot, compared with 3-5% for the 1 oz Krugerrand. Accumulating a full ounce through ten 1/10 oz coins costs several hundred dollars more than buying a single 1 oz piece. That premium penalty is the price of divisibility and a lower entry point.

1/10 oz Krugerrand Technical Specifications

Krugerrand Denomination Range

The Krugerrand is struck in four gold denominations. All share the same 22-karat alloy and design, differing only in size and gold content.

The 22-karat composition means each coin weighs more than its stated fine gold content. The copper alloy adds mass without reducing the gold; a 1/10 oz Krugerrand contains exactly 1/10 troy ounce of pure gold, with an additional 0.283g of copper making up the balance. This alloy was chosen to match the historic British Sovereign standard, providing durability for a coin designed to be handled and traded rather than sealed in a capsule.

1/10 oz Krugerrand Tax Status by Country

The Krugerrand's tax treatment varies significantly between jurisdictions. Its 22-karat purity and South African legal tender status create a mixed picture depending on which country the buyer is in.

United Kingdom

Gold Krugerrands are VAT-free as investment gold under UK rules. The coin qualifies because it is a post-1800 legal tender coin of at least 900 thousandths purity. However, the Krugerrand is not CGT-exempt in the UK. Only coins with a sterling face value (the Gold Britannia and Gold Sovereign) qualify for Capital Gains Tax exemption. This is the single most important distinction for UK buyers: a 1/10 oz Britannia is CGT-free, but a 1/10 oz Krugerrand is not. With the annual CGT allowance at just £3,000, this matters for anyone building a meaningful gold position. For smaller holdings, the CGT allowance may cover any gains, making the distinction less relevant for a first-time buyer picking up a few 1/10 oz coins.

United States

The Krugerrand is IRA-eligible, specifically approved by the IRS for inclusion in self-directed precious metals IRAs. The coin must be held by an approved custodian. Capital gains on bullion sold outside an IRA are taxed at the collectibles rate of up to 28%, higher than the standard long-term capital gains rate for equities. Sales tax treatment depends on the buyer's state; roughly 35 states exempt bullion from sales tax entirely.

South Africa

Gold Krugerrands are zero-rated for VAT under section 11(1)(k) of the Value-Added Tax Act, applicable since 1995. They are legal tender in South Africa, valued at their gold content rather than a fixed face value. Capital gains tax applies at a 40% inclusion rate for individuals.

Canada

Gold Krugerrands are GST/HST-exempt. The exemption test is on the precious metal content per coin (above 99.5% fine), and the Krugerrand's pure gold content qualifies even though the coin itself is 22-karat alloy. Capital gains are taxable at a 50% inclusion rate.

Australia

Gold Krugerrands are GST-free as investment-grade gold. Capital gains tax applies on disposal, with a 50% CGT discount available for individuals who have held the asset for more than 12 months.

European Union

Gold Krugerrands appear on the EU's annual list of investment gold coins and are VAT-exempt across all EU member states under Directive 98/80/EC.

Singapore and Hong Kong

Singapore exempts the Krugerrand from GST under its Investment Precious Metals scheme. Hong Kong has no sales tax, no import duty, and no capital gains tax, making it one of the most tax-friendly jurisdictions for all bullion.

1/10 oz Krugerrand vs Other Fractional Gold Coins

The 1/10 oz gold coin market has strong competition from every major sovereign mint. Each offers the same fine gold content (3.11g) but with different purities, security features, and tax implications.

vs 1/10 oz Gold Britannia

The 1/10 oz Gold Britannia is .9999 fine (24-karat) versus the Krugerrand's .9167 (22-karat). Both contain 1/10 oz of pure gold, but the Britannia is lighter overall (3.13g total versus 3.393g) because it carries no alloy weight. The Britannia has four anti-counterfeiting features from 2021 (latent image, surface animation, micro-text, tincture lines) that the Krugerrand lacks entirely. For UK buyers, the critical difference is tax: the Britannia is CGT-exempt as UK legal tender, the Krugerrand is not. The 1/10 oz Britannia is the lowest-cost entry point into CGT-free gold in the UK.

vs 1/10 oz American Gold Eagle

The 1/10 oz American Gold Eagle shares the Krugerrand's 22-karat composition but uses a different alloy: 91.67% gold, 3% silver, and 5.33% copper, compared with the Krugerrand's gold-copper only mix. Both carry a $5 face value (Eagle) or no face value (Krugerrand). The Eagle has a statutory IRA exemption that bypasses the normal .995 purity requirement. The Eagle tends to carry slightly higher premiums, particularly in the US domestic market, but also commands stronger buyback prices from US dealers.

vs 1/10 oz Canadian Maple Leaf

The 1/10 oz Gold Maple Leaf is .9999 fine gold, the purest standard fractional coin available. It features the Royal Canadian Mint's Bullion DNA micro-engraving and radial line security features. The Maple Leaf typically trades at lower premiums than the Eagle and comparable premiums to the Krugerrand. Its higher purity makes it softer and more susceptible to scratching from handling.

vs 1/10 oz Philharmonic

The 1/10 oz Gold Philharmonic is .9999 fine with a EUR 10 face value. It was introduced later than the other fractionals (1991 versus 1980 for the Krugerrand) and is most popular in continental European markets. The Philharmonic typically carries among the lowest premiums of the major sovereign mint fractional coins.

The Krugerrand's main advantages at 1/10 oz are its brand recognition, deep secondary market, and the durability of its 22-karat alloy. Its main disadvantage is the absence of modern anti-counterfeiting features and, for UK buyers specifically, the lack of CGT exemption.