The Smart Buyer's Guide to Krugerrands in South Africa

Gold Invest SA
Nov 7, 2025
4 min read

Thinking of adding gold Krugerrands to your portfolio? Here's everything South African buyers and dealers need to know about staying safe, legal, and scam-free when buying bullion.

🎯 Your 60-Second Safety Check

Before you hand over a single rand, make sure your dealer passes these five critical tests:

1. Licensing: Demand Proof

Don't just take their word for it. A legitimate dealer will proudly show you their SADPMR permit and FIC registration number. No papers? No purchase. These documents prove they're legally allowed to sell precious metals and accountable under South African law.

2. FICA Isn't Optional, It's Protection

Yes, showing your ID and proof of address feels like paperwork overload. But here's the truth: a dealer asking for your details is actually protecting you. Expect to provide:

Your ID document
Recent proof of address
The reason you're buying
Source of funds (especially for larger purchases)

If a dealer doesn't ask? That's your red flag.

3. Cash Isn't King Anymore

Planning to pay R50,000 or more in physical cash? Your dealer is legally required to file a Cash Threshold Report (CTR) with the Financial Intelligence Centre.

Warning signs:

Dealer suggests splitting your payment to avoid the R50k threshold
No mention of CTR filing
Pressure to "keep it between us"

If you encounter any of these, you're not dealing with a professional, you're dealing with potential fraud.

4. Your Data Deserves Respect

Under POPIA (Protection of Personal Information Act), any dealer collecting your personal information must show you a Section 18 privacy notice. This isn't bureaucratic nonsense, it tells you:

What information they're collecting
Why they need it
Who they might share it with
How to exercise your rights

No notice? Don't share your documents.

5. The Invoice That Protects You

Your receipt isn't just a formality, it's your legal proof of purchase. Insist on a detailed invoice that includes:

Item description and metal purity
Exact weight
Price breakdown and any fees
Full details of both buyer and seller
Serial numbers (where applicable)

Keep your copy safe. By law, dealers must keep theirs for five years. You should too.

🚨 Three Red Flags That Scream "Walk Away"

Warning Sign	What It Means	Your Response
No CTR for R50k+ cash or suggestions to split payments	They're trying to dodge money laundering laws	"No CTR? No deal." Leave immediately.
Skipping FICA checks (no ID, no questions asked)	They're not doing proper customer due diligence	"No KYC? No deal." Find another dealer.
No privacy notice or careless data handling	Your personal information is at risk	"No POPIA notice? No documents." Protect yourself.

🛡️ What Legal Dealers Must Do (And What You Can Expect)

Understanding dealer obligations helps you spot the professionals from the pretenders:

Licensing & Registration Every legitimate dealer must hold a valid SADPMR permit and be registered with the Financial Intelligence Centre as either a Dealer in Precious Metals and Stones (DPMS) or High-Value Goods Dealer (HVGD).

Customer Due Diligence (KYC) Risk-based checks are mandatory. The bigger the transaction or the more unusual the circumstances, the more questions you'll face. This protects everyone.

Reporting Requirements Dealers must file:

CTRs for cash transactions over R50,000
Suspicious Transaction Reports (STRs) for anything that raises concerns
Terrorist Property Reports (TPRs) when applicable

Record Keeping All customer due diligence and transaction records must be kept for five years. This creates an audit trail that protects both parties.

Data Protection Your personal information must be safeguarded, and any data breaches must be reported under POPIA.

📋 Your Responsibilities as a Buyer

This isn't a one-way street. To keep yourself on the right side of the law:

Be Honest and Complete Provide accurate ID and source-of-funds information when requested. Lying or withholding information can land you in legal trouble.

Don't Get Creative with Payments Structuring payments to avoid thresholds or using third parties to make payments on your behalf can trigger anti-money laundering (AML) investigations under POCA (Prevention of Organised Crime Act).

Know Your POPIA Rights You have the right to:

Ask questions about how your data is used
Request access to your information
Demand corrections to inaccurate data
Store shared documents securely

💡 Smart Buying Practices

Choose EFT Over Cash Electronic payments create a clear, traceable record and significantly reduce risk for everyone involved. They're also more convenient and safer than carrying large amounts of cash.

Get Everything in Writing Request written quotes before committing, and never accept a handshake deal. Detailed documentation protects you if disputes arise later.

Trust Your Instincts If something feels off, if you're being rushed, pressured to avoid documentation, or asked to pay cash without proper reporting, trust that feeling and walk away. There are plenty of legitimate dealers who will treat you right.

💎 Special Rules for High-Value Purchases (R100k+)

Buying a single item worth R100,000 or more? Expect stricter scrutiny. Dealers handling these transactions must apply High-Value Goods Dealer (HVGD) rules, even if they've never sold at this level before. Enhanced due diligence isn't personal, it's the law, and it's designed to protect the integrity of South Africa's precious metals market.

✨ The Bottom Line

Buying Krugerrands and bullion in South Africa should be straightforward, secure, and transparent. The regulations exist to protect you from fraud, money laundering, and data theft, not to make your life difficult.

Remember: A dealer who follows the rules isn't being bureaucratic. They're being professional. And in the world of precious metals, that professionalism is worth its weight in gold.

This guide applies to private buyers and small businesses in South Africa purchasing Krugerrands and bullion in ZAR from retail dealers (not refiners or mints).