- I want to buy a Krugerrand coin, 22k, without VAT, and give it to a jeweler, who is a friend of mine, so he`ll be ably to make a piece of gold jewelry for my wife. Is this operation legal?

No it isn't. Under the current legislation, you cannot use gold coins for jewelry to avoid paying VAT or even without it. The two-component ligature found in modern Krugerrands really does have an unusual reddish color. Therefore, many women would like to use Krugerrands as material for jewelry. But melting investment coins that can be used as currencies in issuer countries is illegal.

You can order jewelry made of the same materials from your friend or any other jeweler and it will definitely be the same color. To do this, you need 22k gold with no ligature except copper and a purity of at least 99.9. Here are the required proportions: gold - 90.51% and copper - 9.49%. In this way, you will get the same reddish color of a Krugerrand. If you prefer the more yellowish color of the old Krugerrands, then you have to use a triple ligature. In this case, the proportions are as follows: gold - 91.38%, copper - 8.39%, silver - 0.23%.

The above-mentioned data does not come from booklets or handbooks, we got it after performing X-ray spectroscopy of 1 oz coins. These were Krugerrands minted in 2012 and 1985, respectively.