Gold Buffalo Coins

Gold Buffaloes are the U.S. Mint’s latest addition to the bullion market. This coin is pure .9999 fine gold and was made to compete with the Canadian Maple Leaf Gold coin. Production started in 2006 and is available in both uncirculated and proof. Fractional coins were made in 2008, but are very hard to find and have become collectibles worth several times their bullion value.

As a bullion coin, they are an excellent choice. The Buffalo is generally available at small premiums over gold and slightly more than Gold Eagles. They come shrink wrapped from the Mint in sheets if 20 coins. When possible, keep coins in original plastic and avoid coins that are obviously damaged.

Beware:  It has become common practice to have these coins certified and sold at very high markups. In general, you should not pay substantial premiums for coins in 69 or even 70 grades (MS or PR). Although dealers will claim they are very rare based on the high grade, there currently exists no reliable resale market for graded coins. I have a copy of a recent offer from a major dealer who sells the MS-70 Buffaloes. At $1161 spot gold price, his offer for the MS-70 Buffalo, one his suggested coins, was only $1198. This is further proof that there is no resale market for these coins, even from the dealers who tout them.

As an added bonus, these coins are likely are safe from confiscation because they are actually defined as “numismatic in the legislation which created them, Public Law 109-145 Title II.

‘‘(7) TREATMENT AS NUMISMATIC ITEMS.—For purposes of section 5134 and 5136, all coins minted under this subsection shall be considered to be numismatic items.”

They are also exempt from dealer reporting when you sell or buy these coins.

Don’t get ripped off by companies offering Certified Buffalos at crazy prices. Many dealers are selling both MS and Proof coins in 69 and 70 grade at prices that allow t5hem to make 50% to 300% profits. Call us if you want certified coins.

American Federal can supply them for prctically the same price as “raw” ungraded coins.

MS-69 Buffalos at $125 over spot

MS-70 at only $200 over spot based on availability

All coins graded by PCGS, NGC, or ICG. Call to confirm prices.