What Are Buffalo Gold Bullion Coins?

Answering the question "What are American Buffalo gold bullion coins?" is something that any bullion coin enthusiast is going to need to be clear on if they intend to invest in or collect this coin. It was recently issued by the United States mint and, while they are quite expensive, is easy to find.

There are several reasons why gold coins are going to be expensive. The foremost reason being that gold has been climbing steadily in value since the onset of the prevailing economic downturn. Many investors are diversifying by moving some assets over to gold, which can be a good hedge in times of growing inflation. Also, they're very portable. This means that they can be stored, picked up and moved around easily.

The American Buffalo gold bullion coin was launched in June of 2006. It is also known as as a Gold Buffalo. Back in 2006 its price was $800. In December 2009 it was worth $1410, which equates to a 17.5% per annum rise or 76% total return. It's also the first US coin made of 99.99% pure 24 carat gold available to the general public.

{The coin's face value is fifty United States dollars. It is a slightly different version of the famed Indian Head nickel of 1913 that featured on its reverse side, a buffalo. It is a one troy ounce gold bullion coin and trades as such on the gold market the same as every other form of gold does. Its daily price will ebb and flow with the prevailing value of gold. They generally trade at a 4 to 5% premium to the spot gold market.

If all the rich men in the world divided up their money amongst themselves, there wouldn’t be enough to go round.

A law enacted in 2005 - the Presidential One Dollar Coin Act, is the major reason why this bullion coin now exists. The Law mandated that the mint produce a 24 carat, one ounce gold coin. The act also mandated that it be made from bullion and that it have a US$50 face value. The Act also stipulated that only 300,000 or fewer of these coins be produced, meaning that it will eventually be scarce and of even greater numistatistic value to coin collectors.

American Buffalo gold coins are legal tender and will buy $50 worth of services or goods, though anyone holding a Gold Buffalo would be foolish to use it as such. They are made of 99.99% pure gold, after all. There are two different versions; a bullion and a proof. The proof edition has a 'W' imprint to denote the mint at which the coin was manufactured. All of them came from the West Point Mint in New York State where the coins are produced.

American Buffalo gold coins are an alluring asset for a variety of reasons. They are easy to store and move around and they are made from 24k gold. Their purity also makes them more attractive than the 22 carat American Gold Eagle to coin enthusiasts and investors.