American Gold Buffalo Coins: The US Mint's 24-Karat Bullion Coin
For two decades, the only gold bullion coin produced by the United States Mint was the American Gold Eagle, struck in 22-karat gold. Many international buyers preferred pure 24-karat coins such as the Canadian Maple Leaf. The US answer came in 2006 with the American Gold Buffalo, the first .9999 fine gold coin struck by the US Mint for the public. It quickly became one of the country’s two flagship gold bullion coins.
Origins
Congress authorised the coin in the Presidential $1 Coin Act of 2005, which also contained provisions for a 24-karat gold bullion coin. The first Gold Buffalo coins were released in 2006. The law required the design to be based on one of the most admired coins in American history: the Buffalo nickel.
The design
The Gold Buffalo reproduces the design created by sculptor James Earle Fraser for the five-cent piece first struck in 1913.
- Obverse: the profile of a Native American man, a composite portrait said by Fraser to be based on several individuals.
- Reverse: an American bison standing on a mound, often said to have been modelled on a bison at the New York zoo.
The design has remained unchanged on the bullion coin since 2006, apart from the inscriptions required for a gold coin, such as the weight and fineness, and the face value of $50.
Specifications
| Feature | Detail |
|---|---|
| Metal | Gold |
| Fineness | .9999 (24 karat) |
| Fine gold content | 1 troy ounce |
| Face value | 50 US dollars |
| First year | 2006 |
| Issuer | United States Mint |
The bullion coin is produced in the one-ounce size. In 2008, the Mint also issued fractional Gold Buffalo coins in 1/2, 1/4 and 1/10 ounce, in bullion and proof versions, but this was a one-year exception. If you need smaller units of gold, other series offer regular fractional sizes, as explained in our guide to fractional gold coins.
Gold Buffalo vs American Gold Eagle
The United States now issues two gold bullion coins, and they are often confused.
| Feature | American Gold Buffalo | American Gold Eagle |
|---|---|---|
| Fineness | .9999 (24 karat) | .9167 (22 karat) |
| Gross weight of 1 oz coin | About 1 troy ounce | About 1.0909 troy ounces |
| Face value of 1 oz coin | $50 | $50 |
| Sizes | 1 oz (fractions only in 2008) | 1 oz, 1/2 oz, 1/4 oz, 1/10 oz |
| Launched | 2006 | 1986 |
Both one-ounce coins contain exactly one troy ounce of fine gold, so their bullion value is identical. The Eagle contains copper and silver for hardness, which makes it more resistant to scratches. The Buffalo, being nearly pure gold, is softer and needs more careful handling. More on the Eagle family is in our article on American Eagle bullion coins.
Bullion, proof and uncirculated versions
As with its other programmes, the US Mint sells bullion Gold Buffalos through a network of authorised purchasers, which then supply dealers. The Mint also sells proof versions directly to collectors, and in some years has issued burnished or special versions. These collector versions command premiums well above their gold content and are best understood as collectibles.
Premiums and resale
Gold Buffalo premiums are generally in line with those of other major one-ounce gold coins, though they vary with supply and demand. Because the coin is produced by the US government and widely recognised by American dealers, it is easy to sell in the United States and well known abroad.
Who chooses the Buffalo?
Buyers who prefer pure gold, or who like the classic Fraser design, often choose the Buffalo. Those who prefer durability or need small sizes may lean toward the Eagle or other series. In terms of gold content, the choice makes no difference. For a wider view of the market, see our overview of gold bullion coins and the practical guide on how to buy gold coins. Collectors of older American gold may also enjoy our article on the $20 gold coin.
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