Unlike most of the other bullion coins, the krugerrand value is not derived from the coin’s face value. The value of the coin keeps fluctuating and it is indexed to the gold price. So it is obvious that if the prices of gold go up, the value of the coin would also increase, and vice versa. The coin is a copper alloy and is made of 22 karats of gold. But when compared to most of the other gold coins or bullion coins in the market, the krugerrand coin does not look like gold and has sort of a faded tinge to its entire texture. However, that texture and composition works in the favor of the coin. With the coin being circulated so often and with the coin changing hands on an everyday basis, it is imperative that the coin is sturdy and is not malleable. A malleable gold coin would lose it shape over a period of time.
