Deak-Perera Suspends Sales of Krugerrands

Deak-Perera, the nation’s largest dealer in the South African gold coins called krugerrands, said Friday that it has suspended sales of the coins in this country because of the possibility that Congress may impose sanctions on South Africa for its system of racial segregation and discrimination.

The firm, whose offices have been the target of repeated protests against apartheid, said it stopped selling krugerrands in the United States on Thursday but will buy them for sale to exporters.

Gold analysts said the company’s decision was announced after krugerrand sales had declined to “virtually nothing” as racial violence has mounted in South Africa and Congress has threatened to cut off imports of the coin.

“We have decided to suspend the sale of krugerrands pending the resolution of the proposals currently before Congress to restrict the importation of krugerrands,” said R. Leslie Deak, president of the firm, the largest currency trader in the United States, in a news release.

Thousands Sold Per Year

The House, arguing that South Africa earned $500 million in foreign exchange from selling krugerrands last year, recently approved a measure that would ban U.S. sales of the coin. The Senate is expected to vote on the measure next month.

Jerri Eskow, a Deak-Perera spokeswoman in New York, said the company has been selling thousands of krugerrands a year. She said she believes that Deak-Perera is the nation’s largest krugerrand dealer, but she refused to discuss sales figures or profits.