Silver Price in South African Rand (ZAR)

The Silver Krugerrand is a 1 troy ounce .999 fine silver bullion coin produced by the South African Mint in partnership with the Rand Refinery. It was introduced in 2017 as a companion to the iconic Gold Krugerrand, which has been minted since 1967. The Silver Krugerrand features the same Paul Kruger portrait on the obverse and springbok antelope on the reverse as its gold counterpart. It has a face value of 1 rand and has quickly become one of the most popular silver bullion coins worldwide, benefiting from the strong brand recognition of the Krugerrand name.

The South African rand is one of the more volatile major currencies, and this volatility creates a double amplification effect for silver investors. When the global silver price rises in USD terms and the rand simultaneously weakens against the dollar, the ZAR-denominated silver price increases by more than either move alone. For example, a 10% rise in the USD silver price combined with a 10% depreciation of the rand would result in approximately a 21% increase in the ZAR silver price. This makes silver an effective hedge against rand depreciation, though it also means losses can be amplified when the rand strengthens.

Yes, physical silver purchases in South Africa are subject to 15% Value Added Tax (VAT). This applies to all silver bars, coins (including the Silver Krugerrand), and rounds. Unlike some countries that offer VAT exemptions for investment-grade precious metals, South Africa applies VAT to silver without exception. The 15% VAT significantly increases the cost of acquiring physical silver and means the silver price must appreciate by more than 15% before an investor can break even on a purchase, making it one of the higher tax burdens on silver globally.

In South Africa, profits from selling silver are subject to Capital Gains Tax (CGT). For individuals, 40% of the capital gain is included in taxable income, which is then taxed at the individual's marginal income tax rate (maximum 45%). This results in an effective maximum CGT rate of approximately 18%. Individuals also benefit from an annual capital gains exclusion of R40,000, meaning the first R40,000 of combined capital gains each year is tax-free. Upon death, the exclusion increases to R300,000. The 15% VAT paid at purchase is not recoverable for individual investors.