The American Gold Buffalo is the purest gold coin from the United States Mint, and it is popular among investors.
The American Buffalo gold bullion coin is one of the most sought after investment coins today. At 0.9999 pure gold, it is the purest American gold coin on the market. If you are considering the American Gold Buffalo as an investment, it is likely that you have plenty of questions.
That said, here are some of the most frequently asked questions about the American Gold Buffalo and how you can invest.
What is a Gold Buffalo?
The American Gold Buffalo is a one ounce, pure (.9999) 24k gold coin produced by the United States Mint. The Gold Buffalo was officially approved for coinage with Public Law 109-145 - otherwise known as the Presidential $1 Coin Act - in December of 2005 with a maximum production run of 300,000 coins.
The American Gold Buffalo features James Earle Fraser’s classic Indian Head or Buffalo Nickel designs. The gold coin made its debut in June 2006 with great success.
This 0.9999 fine gold coin has a legal tender value of $50, though the retail and resale value of the Gold Buffalo greatly exceeds this.
Is there a $50 Gold Buffalo Coin? How much is it worth?
The American Gold Buffalo Coin had an initial value of $50 in 2006. Immediately, coin collectors began to raise the value of the coin due to high demand. As soon as the coin was released, its purchase price shot up to $800 for the proof coin or collector’s edition.
Typically, mints only make a few proof coins, but knowing how popular the coin would be with collectors, the US Mint produced more proof coins in 2006 and 2007 than their average annual production runs.
In 2007, the proof coin had risen to $900. Between 2008 and 2011, as the economy went through a recession, gold saw the opposite. By 2011, the value skyrocketed to over $2,000.
How many Gold Buffalos are minted each year?
In 2006, the United States mint produced their largest run of Gold Buffalo coins. Since then, the mint numbers have dropped but they’re still being mass produced. The list below contains the mintage numbers for the last 10 years based on data from the U.S. Mint.
- 2006 - 337,012 coins, 246,267 proofs
- 2007 - 135,503 coins, 58,998 proofs
- 2008 - 189,500 coins, 18,863 proofs
- 2009 - 200,000 coins, 49,306 proofs
- 2010 - 209,000 coins, 49,263 proofs
- 2011 - 250,000 coins, 28,683 proofs
- 2012 - 100,000 coins, 19,715 proofs
- 2013 - 198,500 coins, 18,584 proofs
- 2014 - 180,500 coins, 20,557 proofs
- 2015 - 220,500 coins, 16,591 proofs
- 2016 - 219,500 coins, 21,878 proofs
How much is a Gold Buffalo worth?
The face value of the American Gold Buffalo is $50. Coin collectors and the price of gold saw the value skyrocket to above $2,000 in under five years for the first proof coins. In the case of the 2006 and 2007 Gold Buffalo coins, the United States minted proofs for the collector market.
Proof coins are early samples, usually produced when mints are checking their dies or for archival purposes. You can tell if your coin is a proof because the U.S. Mint has put a “W” on the face. With the current price of gold, some are collecting the Gold Buffalo coin as investments.
The United States recently expanded the program to fractional sizes. They have made available the ½ ounce $25 coin, the ⅕ ounce $10 coin, and the 1/10 ounce $5 coin (face values). The actual value of American Gold Buffalo coins is dependent on the fluctuating spot price of gold as well as demand from the collector community.
Are American Gold Buffalos legal tender?
The American Gold Buffalo Coin is legal tender with a value of $50. It is produced by the United States under the Presidential $1 Coin Act, which tasked the Mint to produce up to 300,000 coins. Its value and purity are fully guaranteed and backed by the United States government.
The coin can be used as legal tender to purchase goods or services, although, it is mostly used for collecting and investing. Some companies advertise cheap “Gold Buffalo Coins” on television, but beware. This coin is plated in gold and sells for $19.95.
If your Gold Buffalo has no denomination of face value on the coin ($50) then you likely have one of these and it is not legal tender.
Are American Gold Buffalos taxable?
If purchasing or collecting American Gold Buffalo coins as an investment, you must declare any gains on the investment a capital gain and is subject to taxation by the Internal Revenue Service (IRS). They classify the coin as a collectible, and it is taxed as a long-term capital gain at 28 percent.
Are Gold Buffalo coins a good investment?
Determining whether you want to invest in Gold Buffalo coins depends on how comfortable you are with the market for gold. Many say the safe bet is on gold and that the Gold Buffalo coins are a great investment. This decision is ultimately up to you. Speak to a professional financial analyst if you have questions about gold as an investment.
Where are American Gold Buffalos minted?
Since the beginning, American Gold Buffalo coins have been minted at the West Point, New York Mint.
Where can I buy/sell Gold Buffalo coins?
The market for buying and/or selling American Gold Buffalo coins is comprised of three categories: auctions, coin shops and gold buyers.
Auctions can be either in person or online. Sites like eBay are possible places to buy and sell Gold Buffalos; however, be cautious of these sites because people often try to sell counterfeit coins at steep prices.
Coin shops are a good option if you want to get up close and personal to the coin prior to purchasing.
Another option with gold’s value being so high is the increase of gold buyers and sellers. They will give you straight cash for your coin or will buy it for you at a fraction of the value it is worth. This option is not preferred since you are unlikely to get a good deal and the risk of unknowingly purchasing a fraud is high.
A final (and preferred) option is to buy and sell you American Gold Buffalo coins via a reputable online precious metal dealer like Provident Metals.
Are you interested in selling your Gold Buffalo Coins? Provident Metals offers the best buy back prices in the industry!
If you would like to make the American Gold Buffalo Coin your next investment piece, Provident Metals has a wide selection to fit your needs. Browse our collection, or check out our Knowledge Center to learn more about the Gold Buffalo coin.