Tuesday, 1 June 2010

The price of Krugerrands?

Question
What's the price of a 1 once Krugerrand in Sterling please? Answer
South African 1 ounce Krugerrand coins are 22 carat gold rather than 24 carat – they contain a small amount of copper to harden the coin. However, they weigh more than 1 ounce to compensate, so that they contain 1 ounce of pure (24 carat) gold.

At the time of writing the price of 1 troy ounce of pure gold was about £837 (US$ 1,222).

However, you’ll normally find that dealers build in a 5-10% margin on the buying and selling prices they offer versus the actual price of gold. For example, current dealer prices seem to be about £900 if you’re buying Krugerrands and £800 if selling.

It’s worth shopping around a few dealers on the web to find the best price as their margin is your loss. You’re also likely to get a better deal when dealing in several coins rather than one.

Read this Q and A at http://www.candidmoney.com/questions/question207.aspx

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