Chards
Golden Eagle Coins
Prices are fetched automatically and may not reflect current merchant prices. Currency conversions and tax treatment are approximate. Rankings are based solely on price. We are not a dealer and accept no responsibility for transactions with listed merchants. Past performance is not indicative of future results. This site does not provide investment advice. Full disclaimer
About the Half Sovereign South African Mint Krugerrand Gold Coin
The SA Mint Half Sovereign Krugerrand
The Half Sovereign South African Mint Krugerrand is a fractional gold coin from the world's most established bullion coin programme. Containing 3.66 grams of fine gold in a 22-carat alloy (916.7 fineness), it uses the traditional half sovereign weight standard rather than the troy ounce fractions found in the main Krugerrand range.
The Krugerrand programme dates to 3 July 1967, when the South African government introduced the world's first modern gold bullion coin. By 1980, Krugerrands accounted for more than 90% of the global gold coin market. The standard fractional sizes (1/2 oz, 1/4 oz, 1/10 oz) were added in 1980. The half sovereign weight variant extends the range into a denomination familiar to British and Commonwealth buyers.
Production follows the established Krugerrand division of labour: Rand Refinery manufactures the gold blanks, the South African Mint strikes the coins, and Rand Refinery handles packaging and distribution. This is the same process used for all Krugerrand denominations. The 22-carat copper alloy gives the coin its characteristic orange-gold colour, distinctly warmer than the yellow of .9999 fine gold coins like the Maple Leaf or Britannia.
The coin carries no denominated face value, consistent with all gold Krugerrands. Its legal tender status in South Africa derives from gold content rather than a fixed denomination, allowing the coin's value to float with the gold price.
Half Sovereign Krugerrand Dimensions and Composition
| Specification | Value |
|---|---|
| Fine gold content | 3.66 grams (0.1177 troy oz) |
| Gross weight | 3.99 grams |
| Purity | 916.7 millesimal (22 carat) |
| Alloy | 91.67% gold / 8.33% copper |
| Face value | None (valued by metal content) |
| Edge | Reeded |
| Series | Krugerrand |
| Manufacturer | South African Mint / Rand Refinery |
Design
The obverse carries the portrait of Paul Kruger (1825-1904), President of the South African Republic, designed by Otto Schultz. Inscriptions read "SUID-AFRIKA" and "SOUTH AFRICA" in the country's two primary languages. The reverse depicts a springbok antelope in mid-stride, designed by Coert Steynberg. Both designs have remained essentially unchanged since the Krugerrand's introduction in 1967, making it one of the most consistent coin designs in modern bullion history.
Tax Position of the Krugerrand Half Sovereign
Gold Krugerrands receive favourable tax treatment in most jurisdictions as investment gold, but carry an important limitation for UK buyers.
United Kingdom
VAT-exempt as investment gold (purity above 900/1000 on a legal tender coin). However, not CGT-exempt. Only UK legal tender coins (the Britannia and Sovereign) qualify for CGT exemption. Krugerrands are South African legal tender, so gains above the annual CGT allowance (currently £3,000) are taxable at 18% (basic rate) or 24% (higher rate). This is the critical distinction for UK investors choosing between Krugerrands and Britannias or Sovereigns.
South Africa
Gold Krugerrands are zero-rated for VAT under section 11(1)(k) of the Value-Added Tax Act 1991. This applies to intact gold coins issued by the South African Reserve Bank. Capital gains are subject to the 40% inclusion rate (40% of the gain is added to income and taxed at the marginal rate).
United States
Specifically approved as IRA-eligible under IRS regulations. The Krugerrand is exempt from the standard 99.5% purity requirement for IRA gold because it is a sovereign-issued coin. Capital gains are taxed at the collectibles rate of up to 28% (held over 1 year) or as ordinary income (under 1 year). State sales tax varies.
European Union
Gold Krugerrands appear on the annual EU investment gold coin list and are VAT-exempt in all member states under Directive 98/80/EC.
Canada
GST/HST exempt. The pure gold content qualifies even though the coin itself is 22k alloy, because the Canadian test assesses precious metal content per coin rather than overall coin purity.
Australia
GST-free as investment-grade gold. Available through Australian dealers.
Half Sovereign Krugerrand vs Comparable Fractional Coins
The half sovereign weight places this coin in direct competition with other fractional gold products containing approximately 3.1 to 3.7 grams of fine gold.
vs Royal Mint Half Sovereign
The Royal Mint Half Sovereign contains identical gold (3.66g at 916.7 fineness) and uses the same copper alloy. The Royal Mint version offers UK CGT exemption as British legal tender, making it the stronger choice for UK taxpayers who may realise gains above the annual allowance. The Krugerrand version offers the iconic Kruger/Springbok design and may appeal to collectors of the broader Krugerrand range.
vs Krugerrand 1/10 oz
The standard 1/10 oz Krugerrand contains 3.11g of fine gold in the same alloy. The half sovereign variant offers 18% more gold content. Both carry the same design and tax treatment. The 1/10 oz size has higher production volume and stronger secondary market liquidity.
vs 1/10 oz Britannia
The 1/10 oz Britannia contains 3.11g of .9999 fine gold. It offers UK CGT exemption, advanced security features (surface animation, micro-text, tincture lines), and strong global recognition. The Krugerrand half sovereign offers more gold per coin (3.66g vs 3.11g) and the durability advantage of the 22-carat alloy, but lacks the tax benefits for UK buyers and the anti-counterfeiting technology.
Half Sovereign South African Mint Krugerrand Gold Coin: frequently asked questions
-
The cheapest half Krugerrand listed on BullionFerret today is $557.17, sitting 13.4% over spot. Prices fluctuate with the gold market throughout the day, so Chards is currently offering the keenest price.
-
No. Krugerrands are struck in 22-carat (916.7 fine) gold, alloyed with copper rather than pure 24-carat gold. The copper gives the coin its distinctive warm orange colour and makes it more scratch-resistant than softer 24-carat coins. The alloy means the coin weighs slightly more than its fine gold content alone.
-
Both are 22-carat gold coins, but they differ in origin and face value. The Krugerrand is issued by the South African Mint, carries no face value (its legal tender status is based on its gold content), and has been produced since 1967. The British Sovereign is issued by the Royal Mint and carries a nominal face value in pounds sterling. Both have long histories as internationally traded gold coins, but they come from different sovereign traditions.
-
In the United States, the import of Krugerrands was banned in 1985 under sanctions imposed on South Africa during the apartheid era. The ban was lifted after apartheid ended, with sanctions removed in the early 1990s. Krugerrands have been fully legal to buy, sell, and hold in the US since then, and are now IRA-eligible.
-
It depends on where you live. In the UK, Krugerrands are NOT CGT-exempt; only UK legal-tender coins such as Britannias and Sovereigns qualify for that exemption. UK investors face CGT at 18% or 24% on gains above the annual allowance of £3,000. In the US, gold coins are taxed as collectibles at up to 28% on long-term gains. In Canada, 50% of any gain is included in taxable income.