Gold Buffalo Coin Review

The American Bison was declared the United States National Mammal in 2016. Similar to the Bald Eagle, the Bison is a symbol of the country's values and democracy. It is featured on one of the gold coins produced by the United States Mint.

In 2006, the United States Mint released the first-ever 24-karat gold coin, the Gold Buffalo Coin, and it quickly became a popular choice among investors in the United States and globally.

If you're considering investing in the Gold Buffalo Coin or adding it to your coin collection, we have essential information to help you. Keep reading to learn more about the coin's history and significance.

The Gold Buffalo Coin design features the American Bison as a tribute to the country's heritage and values. It is an aesthetically pleasing and meaningful representation of the nation's history and ideals.

Due to its rarity and historical significance, the Gold Buffalo Coin is an attractive investment opportunity. Whether you're a collector or an investor, it is a valuable addition to your portfolio.

Key Facts About the Gold Buffalo Coin

• Produced by the United States Mint
• Carries a face value of $50
• Boasts a purity level of 99.99%
• Weighs 1.0001 troy oz
• Features a diameter of 32.70 millimeters
• Qualifies for Precious Metal IRA
• First introduced in 2006
• Designed by James Earle Fraser, who adapted his design from the 1913 Indian Head Nickel

Value

The denomination of the Gold Buffalo Coin is $50 at face value, but don't be fooled by its seemingly low price. The coin's value depends on the current gold price, which is much higher, making it a valuable investment for collectors.

Since its introduction in 2006, the Gold Buffalo Coin has increased in popularity, and its value has surged along with the price of gold. Initially priced at $800, a proven Gold Buffalo Coin now carries a value of almost $2,000 in mid-2021, making it a highly sought-after investment opportunity.

The Gold Buffalo Coin is not used as a legal tender due to its high value. Instead, it is a popular investment and collector's item, and its increasing value makes it a worthy addition to any investment portfolio or coin collection.

Design

The Gold Buffalo Coin is a stunning artwork that draws inspiration from the 1913 Indian Head Nickel designed by James Earle Fraser. Fraser only slightly modified his original design to create the Gold Buffalo Coin.

The obverse side of the coin showcases a striking profile of a Native American. When creating the Indian Head Nickel, Fraser collaborated with three prominent Native American Chiefs, Big Tree, Two Moons, and Iron Tail. He skillfully combined the features of each chief to create a unique and powerful image that graces the obverse side of the Gold Buffalo Coin.

On the front of the Gold Buffalo Coin, the word "Liberty" is inscribed on the right side above the Native American's image, while the minting date is stamped on the lower left side of the coin. The letter "F," for Fraser, is located just below the date on the Native American's neck.

On the back side, the coin showcases the famous buffalo image from the Indian Head Nickel, which spans the entire width of the coin facing left. The words "United States of America" and "E Pluribus Unum" are displayed on the top of the coin, while the phrase "In God We Trust" is located on the left side under the buffalo's head. Finally, the weight, face value of $50, and purity level of .9999 fine gold are imprinted on the bottom of the coin.

Bullion vs. Proof

When deciding whether to invest in a Gold Buffalo coin, you must choose between the bullion Gold Buffalo Coin and the Proof Gold Buffalo Coin. Although they may appear similar at first glance, some important differences exist.

Creating proof coins requires more precision and manual labor than producing bullion coins. The blank coins are fed by hand into the press and are struck more times than bullion coins, resulting in clearer and more detailed images and text.

Once produced, proof coins are graded by organizations such as the Numismatic Guaranty Corporation (NGC) or Professional Coin Grading Service (PCGS) using the Sheldon Scale. This scale rates coins from 1 to 70 based on their quality and detail, with a score of 70 indicating a perfect coin that meets all the necessary criteria.

History of the Gold Buffalo Coin

The Gold Buffalo Coin has a relatively short history compared to other coins, but its background is still intriguing. This coin was first introduced to the public by the United States Mint in 2006 and was the first 24-karat gold coin produced by the Mint. 

However, it can be traced back to the Presidential $1 Coin Act of 2005, which not only called for the creation of the Gold Buffalo Coin but also started the production of Presidential Dollars Coins and mandated the redesign of the Lincoln Cent penny for 2009, in honor of Lincoln's 200th birthday.

The new 1-ounce, 24-karat gold bullion coin was required to have a face value of $50, and the Presidential $1 Coin Act also authorized the production of up to 300,000 coins annually. 

The only gold coin produced by the US Mint was the American Gold Eagle Coin until the introduction of the Gold Buffalo Coin. However, with its purity level of only 91.67%, the US wanted to create a coin with a higher purity level to match other mints, such as the Royal Canadian Mint, whose coins have a 99.99% purity level. 

The American Buffalo Coin was the answer to this requirement, with the bill mandating that the coin's design be based on the Indian Head Nickel/Buffalo Nickel by James Earle Fraser. In December 2005, President George W. Bush signed the bill into law, giving birth to the Gold Buffalo Coin.

The Gold Buffalo Coin's design was inspired by James Earle Fraser's Indian Head Nickel. Fraser used the facial features of Two Moon, Iron Tail, and Big Tree to create the profile image of the Native American on the coin. 

Since its release in 2006, the Gold Buffalo Coin has gained immense popularity, prompting the United States Mint to produce fractional coins in 2008. These included a ½-ounce coin with a $25 face value, a ¼-ounce coin with a $10 face value, and a 1/10-ounce coin with a $5 face value.

Due to the economic downturn in the United States, investors began turning to gold as a means of protection from the recession. This led to an increased demand for gold in the country and a surge in demand for the Gold Buffalo Coin. 

However, the United States Mint struggled to keep up with production, leading to the Gold Buffalo Coin sales suspension in 2008. Production later resumed, but only for the 1-ounce coin. As a result, the fractional coins produced during that brief period are now considered much rarer.

Investing in Gold Buffalo Coins

Looking to add a new investment to your portfolio or expand your coin collection? The Gold Buffalo Coin could be a great choice. But how do you go about investing in this coin? There are several ways to do this.

One option is to purchase a coin as a personal investment and keep it in your possession. Alternatively, you can arrange for secure storage through a safe deposit box or a company specializing in secure segregated storage of precious metals. Adding this beautiful coin to your collection or investment portfolio can be wise.

A local coin dealer is a viable option if you plan to buy a Gold Buffalo Coin for investment purposes. You can scrutinize the coins at a dealer's shop and select the exact one you prefer from the available options. Additionally, you might have some say in the year you receive.

However, purchasing a gold coin from a brick-and-mortar dealer may have drawbacks. Firstly, the price may be higher due to added markups. Secondly, if privacy is a concern, buying from a local coin shop may not be the best choice, as it is less discreet.

Instead of buying a Gold Buffalo Coin from a local coin shop, you could purchase one online from a trustworthy precious metals dealer. Doing so ensures that you receive an authentic coin and a legitimate transaction. Many dealers offer free shipping and transit insurance, giving you peace of mind that your coin will arrive safely at your doorstep.

Another way to invest in Gold Buffalo Coins is through a Gold IRA, a type of Self-Directed IRA that allows individuals to invest in alternative assets instead of traditional stocks and bonds. This option provides a unique way to diversify your retirement portfolio and hedge against inflation.

When establishing a Gold IRA, you can benefit from the same tax advantages as traditional IRA holders. Incorporating gold coins like the Gold Buffalo Coin into your IRA diversifies your investments, which reduces over-reliance on the stock market.

A Gold IRA allows for annual contributions of up to $6,000 ($7,000 if you're over 50). Acquiring more Gold Buffalo Coins or other precious metal coins and bars can increase the likelihood of financial stability in retirement.

Frequently Asked Questions 

Q: How much is a Gold Buffalo Coin worth?

A: The value of a Gold Buffalo Coin depends on the current price of gold. Despite having a face value of only $50, the coin's value for investors is much higher.

Q: Can Gold Buffalo Coins be included in IRAs?

A: Gold Buffalo Coins meet the IRS regulations for IRAs as they are 99.99% pure. The minimum purity required for gold in an IRA is 99.95%.

Q: Is a Gold Buffalo Coin pure gold?

A: Gold Buffalo Coins are made of 99.99% pure 24-karat gold.