If you've been reading Gold Why for a while, you know that I really enjoy my fractional gold bullion
coins. They're easier to buy (I have to save less money), they're in smaller denominations (really helpful
as the price of gold climbs, as I don't want too much wealth tied up in any one coin), and they offer me
the ability to have a wider variety of coins in my collection. As my gold stack has matured over the years
and I have matured as a gold bullion stacker, my preference for fractional gold bullion coins has migrated
to quarter ounce and half ounce coins. While still fractional, those two sizes offer a strong amount of gold
(they are impressive and have some heft to them). Today, I want to share with you a brand new fractional
gold pickup: My 2 Rand Gold Coin from South Africa (1981). While this beautiful coin contains 0.2354
troy ounces of gold, I consider it essentially a quarter ounce fractional gold coin (it's so close).
South Africa's Answer To The British Sovereign
I recently published an article here on Gold Why about my new
British Sovereign Gold Coins.
This was my first article in a few years, the first of many. Gold Why is back in 2017, so please check back
regularly for new articles and insights. I sure love the British Sovereign. Whether it's the extensive history,
the fact that the coin changes over time with the reigning monarch (collectability factor), the wonderful
size (almost one quarter troy ounce of gold), the low cost over spot, or the liquidity, you really can't go
wrong with Sovereigns. In fact, this may become one of my "go to" coins as I buy gold over the
The 2 Rand Gold Coin from South Africa shares many parallels with the British Sovereign.
In fact, it seems to be South Africa's answer to the Sov. And, since I like the Sovereign so much (and the
Krugerrand too), I just had to pick up a 2 Rand Gold Coin of my own. Like the Sovereign, the 2 Rand Gold Coin
does not have its gold weight and purity stamped on the coin. Rather, you just "have to know".
Here are the stats (exactly the same as the Sov): 0.2354 troy ounces of gold (per coin) at 0.9167
purity (22 karat gold bullion). Minted from 1961 - 1983, the 2 Rand Gold Coin features Jan van
Riebeck, Dutch founder of Cape Town, on the obverse and the incomparable springbok on the reverse (like
the Krugerrand, perhaps my favorite gold coin of all time).
2 Rand Gold Coins Have Been Phased Away
In 1980, the South African mint introduced tenth, quarter, and half ounce Krugerrands. Those "true"
fractional Krugerrands have their gold content stamped on them (just like the full one troy ounce Krugerrand).
It is likely because of the introduction of fractional Krugerrands that the South African Mint decided to
discontinue production of the 2 Rand Gold Coin. Personally, other than the half ounce Krugerrand, I do
not like the true fractional Krugerrands as much as the 2 Rand Gold Coin. There's just something
unique and special about the 2 Rand coin. I guess I like something a little bit off the beaten path.
Price Over Spot Is Great
Over the years, I have realized that every single dollar counts. It's important as a gold stacker to stretch
your dollars as far as possible. In other words, buy the maximum amount of gold for the least amount of
dollars. Right now on APMEX (where I purchased my personal coin), the 2 Rand coin offers a low premium
over spot (only $21.99 over spot). While this is low, you can still do even better with other coins such
as the British Sovereign (only $16.99 over spot). An important note here: While it's important to
stretch your dollars, don't do so at the sacrifice of quality. Buy those gold coins that are well-known.
Buy those gold coins that will have a place in your stack for the long-term.
If You Cannot Afford A Full Krugerrand
An interesting point on the 2 Rand Gold Coin: If you cannot afford a full one troy ounce Krugerrand or
a half ounce fractional Krugerrand (but have always wanted one), consider this coin. With its low price
over spot and beautiful springbok on the reverse, this coin is like the Krugerrand at a lower
price. It's perfect if you've always wanted a Krugerrand but cannot afford one. I personally
like the 2 Rand better than the quarter ounce and tenth ounce Krugerrands.
Stay Focused In Your Gold Bullion Stack
I like to diversify and have a variety of gold bullion coins. And, that's just fine. Even though I'm
stacking for bullion value, that doesn't mean I can't enjoy my collection and have some variety. I'm at
the point, however, that I really want to focus. Coins like this one are neat, but they are not a
"top 5" type of gold coin for me.
Going forward, I'll likely spend the bulk of my efforts sticking to the major gold coins that I want
supporting the foundation of my portfolio: American Eagles,
Canadian Maples Leafs, British
Sovereigns, and Gold Buffalos. Ultimately, it
is my belief that the best stacks have their "core" filled with the most liquid and popular coins,
the ones that are extremely well-known. These same portfolios can also have some "ancillary" coins
like this one, added in for fun. However, the ancillary coins should never have too much weight in the overall
As a side note: This is the exact same reason my recent silver bullion pickups have been "boring".
I'm just buying the same old, boring American Silver Eagles over and over. I even shared a video on my
YouTube channel about
my boring silver bullion strategy.
It's all about discipline, boring is good!
Next Steps For My Gold Stack
I've been making a ton of progress in my gold stack as of late. Between my two British Sovereigns and this
South African 2 Rand Gold Coin, I'm really happy with my 2017 progress. With so many gold coins to choose
from and with my focus on the "core" of my stack, I'm currently looking to pick up a 2017 50th
Anniversary Krugerrand. This one will be a large purchase for me, as it's been a while since I've purchased
a full troy ounce of gold at one time. However, being my favorite gold bullion coin and having that special
50th anniversary privy mark, I just can't miss out on that amazing coin. It may take me a while to save up,
but that's what I'm looking at right now. We shall see.
Thanks so much for reading, I truly hope you are finding these insights here on Gold Why helpful. If you
have not seen My YouTube Channel yet, I
strongly encourage you to head on over there. I'm sharing new videos weekly and we have a thriving community
over there (just check out the video comments). While I'm sharing my insights in the videos, I'm learning
just as much from the comments!