What this self proclaimed gold coin experts do not seem to understand is that governments get seigniorage from gold coins, that is, that they tax gold coins by adding a tax to the total price of a gold coin (metal content and production costs), that a customer of the mint has to pay to the mint.
This comes in several forms and includes among other things a decrease in purity. A kruger contains only 91% gold.
The idea that Krugers are mainly sold to private investors begs two questions:
1 - How do they end at the hands of dealers? I know, I know, because the dealers buy them directly from the mint in South Africa all in an uncirculated state and bearing the same year of entry in circulation.
2 - Why would a person, unless looking for a very good discount, be willing to run unnecessary risks by buying krugers from people that they don't even know when they can get the same material from a reputable dealer
