Otherwise known as the Gold Buffalo, the American Buffalo gold coin is a product of the 2005 Presidential 1$ Coin Act. However, it was minted for the first time on the 22nd of June 2006. The24-Karat .9999 pure gold coin is the purest gold coin produced by the United States. The gold buffalo coins remain top of the most popular and most sought after in the market today.
According to the Public Law 109-145 which authorized the creation of the Gold Buffalo, the maximum run for the coin is 300,000 coins. The coin features the image of the classic James Earle Fraser American Indian Head on its obverse side and an American Bison on the reverse side. This design is regarded as the best of all the American coins.
When it first hit the market in 2006, the American Gold Buffalo had a value of $50. However, the coin was in so much high demand following its release that the value of the proof coin was soon raised to $800. Given its soaring widespread popularity, the US West Point Mint had to make more collector’s edition coins. The 2007 version had a value of $900 while that of 2011 was priced at more than $2000.
The gold buffalo has a face value of $50. There are currently 3 fractional sizes of the coin. These include the
- ½ ounce coin with a $25 face value
- ⅕ ounce coin with a $10 face value
- 1/10 ounce coin with a $5 face value
The Gold buffalo’s actual value depends on the current spot price of gold and this varies based on the demand from collectors.
Legal tender status
The American Gold Buffalo is Legal tender. This means it can be used to purchase goods and services. However, like many other gold coins, it serves more of investment purposes.
However, you should beware of counterfeit or imitation coins. A Standard Gold Buffalo is a 24-karat .999 gold coin with a face value of $50. Any coin that sells for less is only an imitation coin and will not be accepted as legal tender.
Gains made from trading Gold Buffalo coins are considered as capital gain and is taxable by the IRS. It is a form of long-term capital gain charged at a rate of 28%.
You can find out more about how gold investments are taxed here.
Why buy this coin?
The American Buffalo Gold coin is one of the purest gold coins on the market which is one of the reasons it is highly sought after by investors. It is also backed by the US government. The American Gold Buffalo can be a smart way to invest money. However, the decision to do so or not is totally up to you. Considering that there are a lot of options in the market. You will need to carry out your research and determine if this is the right form of investment for you. You can also speak to a professional financial analyst that is experienced with dealing in gold coins for advice.
Where can you buy American Gold Buffalo coins?
American Buffalo coins can be traded online with any of the precious metal dealers on the internet. However, be sure to only deal with reputable companies that you have verified to be authentic. Alternatively, you can also purchase coins from dealers in brick-and-mortar coin shops. This allows you to get close and personal with the dealers. But even when making a physical purchase you should take care not to get ripped off.
You can also buy coins from auctions too. These can be either offline or online as the case may be. You will find dealers on site like eBay offering American Gold Buffalo coins on sales at an auction.
Given its popularity and market value, the American Gold Buffalo is a solid investment option for anyone willing to add it to their portfolio. However, knowing the history and reputation of a coin isn’t enough to make an investment decision. You will need to find out about current market trends and weigh your options carefully before deciding on whether or not to invest in a coin.