*Update: We have received clarification that the Krugerrands in question were not underweight, rather they were underspec, meaning they were minted with watered down gold.
This obviously would be much less likely to be detected by a retail consumer, particularly as these were proof coins that would likely never be melted down.
As such, it is likely safe to conclude that this was an intentional skimming operation by the Reserve Bank of South Africa rather than a production glitch.
A national mint producing investment grade gold coins for several months with debased gold is not accidental. Period.
The Reserve Bank of South Africa has admitted that it produced underweight gold Krugerrands in April and May of 2011.
Perhaps they should have used a little tungsten rather than simply minting the coins underweight.
We’d like to know our readers’ thoughts on this:
Is this occurrence merely a production glitch, an intentional attempt by the South African Reserve Bank to skim some extra gold off each coin, or combined with the recent salted tungsten gold report, are the banksters attempting to condition the sheople that physical precious metals cannot be trusted?
Johannesburg – Some Krugerrands have been found to be underweight with too little gold used in their manufacture, the Sunday Times reported in its first edition on Saturday evening.
The newspaper said the SA Mint Company, a subsidiary of the Reserve Bank, had admitted that it made underweight proof or collector Krugerrands.
In a statement on Friday the Reserve Bank confirmed that the coins in question were produced in April and May 2011.
A Krugerrand sells for about R14 000 and is the world’s most popular gold coin and one of South Africa’s most famed collector’s items. According to the Sunday Times, coin dealers were called to the SA Mint Company last year and told about the problematic coins. Apparently they had to sign a confidentiality agreement that forbade them from talking about what they knew.
The Reserve Bank had told dealers that suspect coins would be exchanged by the SA Mint Company.