VIEWS: 0 PAGES: 3 POSTED ON: 4/18/2013
a te on Mrica BUYING A PIECE OF APARTHEID: THE KRUGERRAND CONNECTION A "'...The black man had to be taught that he came second and that he belongs to the inferior class that must obey. " Paul Kruger Buying A Piece Of Apartheid: THE KRUGERRAND CONNECTION South Africa's Krugerrand is the world's coin makes it easy for individual investors andthe injury rateon all mines 25.37 was best-selling gold coin. Nowhere does it sell to gauge the value of their investment at WHOPROFITS FROMSOUTH The South African per 1000workers.1i Black minershada better than in the United States. The coin any time. That makes the Krugerrand "the AFRICA'S GOLD? Government per deathrateof1.33 1000compared to is named for Paul Kruger, an early world's best way to own gold" according about50%of South Goldsalesprovides TheSouthAfrican government benefits a 0.56 ratefor their whiteco-workers in Afrikaner leader who said that "theblack to its promoters. Africa's foreign exchange.4-foreign ex greatly fromgoldproduction andKruger 1982.' Some 8,209 workers have indied man had to be taught that he came se change that buys the oil, computers, and randsalesthrough taxes profit shares. the South Africa's minesin lastten + years, cond and that he belongs to the inferior KRUGERRANDS IN THE US airplanes and other material goods South In 1983,$2,070 million, some14%of all andsome 230,000 injured.i were class that must obey." Todaybuying a Krugerrands are South Africa's largest Africa needs to survive. South Africa is the tax government revenues, came from In 1982,whenblackminersat the gold Krugerrand is a direct way of providing single export item to the US, and the US is world's principal gold producer, with 1983 gold,thusproviding the statewith "much fieldswonthe right to organize their own dollars to South Africa's racist apartheid the largest Krugerrand market worldwide, production at 21.8 million troy ounces or needed financial andeconomicstabili independent union (National Union of regime. accounting for between 30% and 50% of 49.1% of the world's total (excluding the ty.... Theroleof goldhas neverbeen Mineworkers) afterbitter struggle, the all sales since 1975.i The Krugerrand, first USSR).Gold exports totalled $9.15 billion morevital" in the wordsof C.T.Fenton, newsmedia the heralded "democratic" WHAT IS A KRUGERRAND? minted in 1967, wasintroduced into the out of an $18.6 billion figure for all South Chairman the Chamber Mines.8 of of in development South Africa.Yetwhen "More than any other coin, the world USin 1975 when it became legal for indi African exports In 1983, So despite inten 40,000 union miners a declared legal buys its gold in the form of viduals to own gold here. It hasdone well sive efforts at diversification, South Not The Black Miners 1984 strike in September at the gold Krugerrands."I Although they are legal for its apartheid sponsors. The gold coins Africa's white minority rulers remain Ovea424,539 blackminers the gold dig minesaround the Johannesburg, first such WHYPROTEST NOW? tender in South Africa, these coins are accounted for almost a quarter of the value heavily dependent on gold to generate that makes South Africa rich,under the strike since1946,therepression im was Selling gold is vital for the health the of minted primarily for export to foreign in of all US imports from South Africa in 1983 economic growth and the government of direction 48,389 whiteminers. 1982, In mediate. daysafterthe strike declara Two SouthAfrican economy the survival of and vestors. The value of the coins isdirectly and 1984. Krugerrand imports in 1983 revenues needed to maintain the repres of monthly wages blackminersat the gold tion, owners mine in called riot police, the apartheid state. Bothrelyon goldfor linked to the daily international price of were valued at $450.2 million, and totalled sive apparatus of apartheid. minesaveraged $232,compared to resulting in the deathof seven Is blackgold foreign exchange. Now, the goldprice as gold. Krugerrands are available in four $484.7 million in the first ten months of About 16% of gold produced (3.5 or $1,267paidto whites, lessthan a miners. plunges, big dropin demand the any for sizes (1. , A, , troyounces of fine 1984. Total US imports from South Africa million troy ounces) is used for making fifth,' White wealthandblackpoverty the So, high priceof goldpaidin New Krugerrand wouldhurt evenmore,cutting gold). The precise content of gold in each during the same two periods were $2.03 Krugerrands. In 1983, 4,683,149 Kruger the havebeen pattern in SouthAfricaever Yorkandother international gold auction backfurther on what the country cansell billion and $2.18 billion respectively., rands were sold worldwide (in four sizes) sincethe discovery gold in the 1860s of centers no for produces benefits the black it andthus thegoods canpay to import. generating $1.55 billion.7 the transformed country from a forgotten workers whomineit. Goldhasfinanced "stability" for South colonial into backwater a centerfor for Africa-a stability characterized ex by The Mine Owners eign investment economic and develop HOWTHE KRUGERRAND GOES and traordinary wealth privilege a for The Chamber of Mines of South Africa, ment.It wasthe goldmines'demand for TO MARKET whiteminority andinjustice andpoverty eel the national association of mine owners, cheap blacklabor that laid thebasisfor the Intergold, international marketing for the majority of South Africans. Stabili directs the production of gold. The Cham the racismandsocialandeconomic in of armof the Chamber Mines South of ty for the current SouthAfrican govern ber sells its gold bullion to the government equality later codified underthelawsof the Africa,is responsible worldKrugerrand ment means continuation of theapar for for export. Krugerrands, however, are apartheid. Africans wereforcibly driven off sales through its morethan twelve branch theidsystem, defined criminal and as minted by the government and then into their landsandforced the labor esaroundtheworld(the US offices are by abhorrent mostcountries of the world. returned to the Chamber of Mines. The market by taxes.Mostblackminerstoday in based NewYorkandLosAngeles). In Stability for thecurrent regime means a Chamber sells the coins worldwide to are forced migrate to huge company the US, Intergold life distributes Krugerrands highly unstable for the majority of through its subsidiary, the International compounds from their families. far Black to a smallnetwork of firms who, in turn, one South Africans, defined the vio by Gold Corporation (Intergold). Earnings minersliveunder"passlaws" that direct the supply coin to a vastarrayof banks, of lence poverty, illness, illiteracy, repres from the coin sales go directly back to the the andregulate flow of their labor,pre firms brokerage and retailcoin and jewelry sionanddiscrimination. Chamber and so to the mine owners. venting themfromseeking workfreely. dealers The nationwide. company also Blackminersareprevented lawfrom by operates "Krugerrand Information Ser a TAKING ACTION occupying highly skilledandhighly paid vice" with a toll-free number whichwill Therevenues from Krugerrand sales In jobs suchas blasting. Evencompensation supply listings of "your nearest Kruger the US directly support the apartheid for occupational disability is determined by randdealer"anywhere the US. in of regime SouthAfrica.Blocking sale the race.A whiteminerwhocontracts tuber US of is promotion Krugerrands handled of Krugerrands couldmaketheUSthe is culosis,for example, eligible for a lump by the New Yorkfirm of Doyle Dane Bern poorest for market the coinin the world. of sum payment $6,858. A blackminer bach through a multi-million dollar ad It is unlikely that South Africa wouldeasi with the same disease only receives $823. campaign. Advertisements the coinap for lyfind alternative markets its gold for paid Totalcompensation to whiteminers pearin majornewspapers, national jour a either as bullion or as coin. European that wasdouble paidto blackseven nals,even"filmads"on airliners. Rubins countries suchasHolland already are in though blacksoutnumber whites10 to 1 & tein,Wolfson Co.of NYare Intergold's in volved lively boycott campaigns. at themines.10 publicrelations in agents theUS. in In the US recent years,local cam Safetyandhealth conditions at the Although mostgoldcoinssoldcurrently to paigns protest Krugerrand saleshave in mines SouthAfricaareamong the areKrugerrands, thereare alternatives. scored successes. of Coalitions church worstin theworld.In 1982,onlyoneper Coins suchas the Canadian Maple Leaf, groups, community organizers, political for sonwasresponsible theoccupational anda Mexican coin, areavailable from activists, human rights advocates stu and of safety some700,000 working on the other gold-producing countries other than dent groups,among others,havewonim mines.l In 1983,831 minerswerekilled, apartheid SouthAfrica. portant victories. Footnotes Among recent developments: 9 In 1983, the U.S. House of Represen 1. Promotional pamphlet, International Gold Corporation, 1980. * In ongoing Free South Africa Movement tatives passed a bill calling for a ban on 2. Business Week, January 17, 1983. demonstrations, groups in many cities are sales of Krugerrands. The bill died for lack 3. Trade Information Service, US Bureau targeting Deak-Perera, and other Kruger of Senate support, but has been intro of the Census, phone interview, rand distributors. After some weeks of duced again, in 1985. December 6, 1984. picketing, outlets in Pittsburgh and Min 4. 1983 figures, The Citizen, BUILDING THE CAMPAIGN April 3, 1984. neapolis agreed to discontinue sales. 5, Bureau of Mines, US Deparment of the * In February 1985, New York City passed e Lobby your Congressional Represen Interior, phone interview, December 7, an ordinance banning the deposit of city tatives to support legislation to ban the 1984. funds in banks which promote the Kruger sale of Krugerrands pending in Congress. 6. Ibid. rand. Get your city to refuse to deposit funds in 7. Hansard 8. From excerpts of address by C.T. Fen 9 Shearson/American Express halted banks that sell Krugerrands. ton, 94th Annual General Meeting of the Krugerrand promotions in 1983. e Investigate Krugerrand outlets; they in Chamber of Mines of South Africa on June * Dean Witter Reynolds dropped the coin clude banks, jewelry stores and coin deal 26, 1984. Reprinted in FinancialMail, under the strict anti-discrimination policies ers. Call Intergold's "Kruggerrand Informa June 29, 1984. of its new parent company, Sears 9. Survey of Race Relations 1983. Johan tion Service"-(800) 356-4653-to find nesburg: South African Institute of Race Roebuck. your nearest Krugerrand dealer. Check Relations, 1984, pp. 152-154. * Anti-Krugerrand resolutions were publications for ads. 10. Rand Daily Mail, May 20, 1983. passed in Atlanta, Austin, Boston, * Build informed community support for 11 Aziza Seedat, Crippling A Nation. Chicago, Denver, Portland, Detroit, demonstrations through talks, letters to London: International Defence and Aid Fund for Southern Africa, 1984. Oakland and San Antonio. your newspapers and local radio stations. 12. Data collected from: C.T. Fenton's * The First National Bank of Chicago Set up a picket line and distribute leaflets address op. cit.; Star, May 7, 1984. agreed to suspend sales. in public places and transportation 13. Survey of Race Relations, op. cit. pp. * The flagship television stations of ABC, facilities. 156-157. CBS, and NBC in New York and several 14. Star, September 13, 1983. 15. Wall Street Journal, September 19, other cities dropped Krugerrand David Brooks 1984 and The New York Times, advertising. February 1985 September 20, 1984. The American Committee on Africa * 198 Broadway * New York NY 10038 (212) 962-1210 Individual copies are available for 30t each, 150 each in bulk orders of twenty or more.
Pages to are hidden for
"KRUGERRAND CONNECTION A - KORA"Please download to view full document