Gold Buffalo Coins, value for US investors.

First offered in 2006 the American Gold Buffalo Coin is a stunning example of a 24-karat gold bullion coin. The 2006 run was around $800.00 per coin compared with the 2009 proof coin which ran at approximately $1400.00 per coin. The limited nature and therefore scarcity of the runs help to boost and maintain the coins value. You can use the tool at the United States mint to check the value of your coins, specifically 2006 American buffalo gold coin prices and for reputable dealers near you.

The beautiful quality and limited nature of their production helped to boost up the value of the gold buffalo. Though they were initially offered as a 1 ounce piece, the Treasury has indicated they will be struck in fractional denominations. A half-ounce piece is scheduled to be released.

The design of the American Buffalo gold bullion coin.

The design is a modified version of James Earle Fraser’s design of the Buffalo nickel (Type 1), issued in early 1913. After the mound was removed, the Type 2 variation continued to be minted for the rest of 1913 and every year until 1938 (except 1922, 1932, and 1933, when no nickels were struck). The obverse depicts a Native American man, who Fraser said he based on a mixture of features from three American Indian men (John Big Tree, Iron Tail and Two Moons) from three different tribes that posed for him to be sketched. On the reverse stands an American bison on a mound of dirt, commonly referred to as a buffalo. The animal on the reverse is believed by most to be a bison named “Black Diamond” that lived in New York City’s Central Park Zoo during the 1910s. It is said that Fraser had to have someone distract the Buffalo while he sneaked up beside it to draw it. Otherwise, the buffalo would stare at him and Fraser wouldn’t get the profile he wanted.[citation needed] Fraser’s nickel design is generally considered to be among the best designs of any U.S. coin.

On the American Buffalo coin, the mound area of the reverse with the words “FIVE CENTS” has been changed to read “$50 1 OZ. .9999 FINE GOLD”. Also, the motto “IN GOD WE TRUST”, appearing on all U.S. gold coins since 1908, can be seen on the reverse to the left of and beneath the buffalo’s head

Distribution of the American Buffalo gold bullion coin.

All U.S. bullion coins, including the American Buffalo gold piece, are currently being struck at the West Point Mint in New York. According to the U.S. Mint website, only the proof version of the Buffalo gold coin bears the mint mark “W” on the obverse; the bullion version does not have the “W” mark. The 2006 and 2007 coins have only been issued in a one ounce version, but it is expected that the sizes available for American Eagle gold coins will eventually be offered with the American Buffalo bullion coins.

After a long wait by both collectors and investors, the uncirculated version of the American Buffalo gold piece was made available to coin dealers on June 20, 2006. Collectors who wanted to purchase the proof version from the mint were given the opportunity to place their orders with the Mint beginning on June 22. The 2006 proof quality coin has a strict mintage limit of 300,000, with an additional enforced limit of only ten (10) coins per household. The catalog number of the 2006 proof coin at the US Mint is (BA6).

The coin was created in order to compete with foreign 24-karat gold bullion coins. Since investors usually prefer 99.99% pure gold over the 91.67% gold used in the American Gold Eagle, many were choosing non-US coins, such as the Canadian Gold Maple Leaf, to meet their bullion needs. With the American Buffalo coin, the U.S. government hopes to increase the amount of U.S. gold sales and cash in on the 24-karat sales, which makes up about 60% of the world gold market.

Also on June 22, the Mint transferred two of the American Buffalo coins to the Smithsonian Institution’s coin collection because of their historic value

Invest In Buffalo Gold Coin Proofs.

The American Buffalo (or gold buffalo) is a 24-karat gold bullion coin that was authorized and first offered in 2006. The design of the coin features a slightly altered version of James Earle Fraser’s Indian Head Nickel design of 1913. The design was chosen for its popularity in conjunction with the honorific depiction of Native Americans and the all important buffalo.

This one ounce coin has a face value of $50.00 but is valued much higher. When introduced, the 2006 run was approximately $800.00 a coin. The 2009 proof coin ran in the neighborhood of approximately $1400.00. The beautiful quality and limited nature of their production helped to boost up the value of the gold buffalo. Though they were initially offered as a 1 ounce piece, the Treasury has indicated they will be struck in fractional denominations. A half-ounce piece is scheduled to be released.

Purchasing Gold Buffalo coins should be approached with the same caution as any other type of investment. The website for the United States Mint provides a tool where you can simply select your state to find a list of local dealers of gold coins. A browser can also easily check the going rate of different gold coins as valued on going prices at the moment. Local coin dealers may also be available through traditional search means such as a phonebook or web search. Be sure to check multiple locations for multiple prices before committing.

You want to ensure you are dealing with a reputable company. If something seems too good to be true, it is. Be wary of buying coins off of auction sites or businesses that do not have a firm established history. Common sense will go a long way here. It is not wise nor suggested to buy a gold coin from an auctioneer with 4 feedback that has had his account for a week. Regardless of the protections put in place by these types of sites, it will take time and effort to recoup anything lost or contest the validity of the purchase. That is time you do not need to waste with a little preparation.

One final note about protecting your investment is the commercials you will see offering these types of coins for as little as $20.00. They clearly state in the commercial that these offerings are replicas and are gold plated. An original Gold Buffalo is 99.99% gold, hence the very different prices. These replicas are easy to spot. The best indicator is simply to look at the face of the coin. The replicas do not and are not permitted to have the “$50.00” value printed on them as they are not considered a valid currency. They might be great for a gift for a youngster to get them interested in gold or numismatics. When it comes to an investment into your portfolio and future; you want to ensure you are getting the genuine article struck from the West Point Mint of New York.

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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