Why do Krugerrands have lower premium than Britannias?

[GoldenPeanutButter]

I've only recently joined the world of stacking, but I've noticed that 1oz Krugerrands have lower premiums compared to 1oz Britannias. I've checked 4 different dealers and it seems this is pretty much the norm.

Why is that? Is it because Brits are more sought after? or do they have vastly different mintage?

I also wonder if this has always been the case, or it's more of a recent trend.

- Peanut

[Pete]

Always been the case.

The Krugerrand is a good choice of coin for those who are only interested in what their gold costs and not something to drool over.
Selling back to dealers there is very little difference in price so the added premium for buying the Britannia is purely down to what people are prepared to pay.

For example I just looked at the current buyback prices offered by HGM
Krug - £1215.69
Brit ( 22 ct ) £1215.69
Brit ( 24 ct ) £1216.47

Some will argue capital gains exemption with Brits but you need to be making one heck of a profit before you need concern yourself over CGT.

[stefffana]

Yes, indeed, a lot of buyers are very scared about that non CGT gold, even they will never be affected by this. Only few of investors should be very careful with what type of gold are buying. But all the gold sellers in UK are very insistent advertising this CGT on every website, taking advantage. Even it is about one or two pound per oz, on large quantity there are a lot of money.

I really don't care what type of gold I am buying if it is cheap. When the time to sell will come, I will sell at the same spot price all.

Regards,

Stefan.

[silenceissilver]

One big German gold and silver dealer has said, the Krugerrand has a market share of roughly 40%, world wide, amongst the big bullion coins which are the Eagle, the Maple, the Kangaroo, the Philharmonic, the Buffalo, the Panda (if you want to call the Panda bullion - not sure what the premiums currently are) and the Britannia.

The Krugerrand simply has an extraordinary high market share, if you do the maths and divide 60% through the remaining big bullion coins. 

[AgCoyote]

16 hours ago, silenceissilver said:

One big German gold and silver dealer has said, the Krugerrand has a market share of roughly 40%, world wide, amongst the big bullion coins which are the Eagle, the Maple, the Kangaroo, the Philharmonic, the Buffalo, the Panda (if you want to call the Panda bullion - not sure what the premiums currently are) and the Britannia.

The Krugerrand simply has an extraordinary high market share, if you do the maths and divide 60% through the remaining big bullion coins. 

I find it amazing the Krugerrand still has such a high market share. It's a difficult coin to find here at the online retailers in the US relative to the others. I thought the Asians had a strong preference for 9999 gold. I guess there truly is an advantage to being the first mover.