American buffalo coins or gold buffalo as they are popularly known are produced at West Point by the US Mint. These were the first pure gold coins to be manufactured by the United States Mint. The coins are offered in the form of an investment product for public purchase. These 0.9999 (24 karat) fine coins were released in 2006. The coins feature the Indian Head Nickel design on the obverse and the American bison on the reverse, which is the source of its nickname. The Presidential $1 Coin Act authorizes the production of gold buffalo coins. This means that the United States government backs the purity and content of these gold coins.
American Buffalo Coin Design
The Indian Head nickel design featured on American buffalo gold coins is a modification the original design by James Earle Fraser that was released in the first half of 1913. The first version was slightly changed in the same year by reducing the heap of dirt under the animal. This new version continued to be minted every year from 1913 up to 1938, except in years 1922, 1932 and 1933. Among all the US gold coin designs, Fraser’s Indian Head is considered as one of the best. The Smithsonian commemorative coin released in 2001 also features the same design.
A Native American is depicted on the obverse of the coin. Fraser is said to have drawn inspiration for this face from three different American Indian tribe chiefs – Iron Tail, Two Moons and Big Tree. An American bison on a pile of dirt is depicted on the reverse of the coin. The animal is commonly known as buffalo. Many believe that Black Diamond, a bison living in the Central Park Zoo in the New York City during 1910s was the inspiration for this. It is said that in order to get the desired profile, Fraser had the animal distracted by someone and slipped into a good position to draw it.
The main difference between the American buffalo gold coin and the nickel is the inscription in the mound area on the reverse. Instead of FIVE CENTS, the gold coin reads $50 1 oz .9999 FINE GOLD. The new editions of the coin also feature the motto ‘IN GOD WE TRUST’ under the bison’s head on the left. The coins are offered in a fixed size – 1oz.
American Buffalo Coin Value
The value of gold buffalo coin, like all other precious metal coins, is determined by the value of gold content in it and not its tender value. The coins have a face value of $50, but are worth much more. When the coins were released in 2006, the price was $800. Since then the price has been increasing. Currently the price of American buffalo gold coin is around $1,741, but it keeps fluctuating according to spot gold prices. Bulk purchase can help you lower the cost per coin. Earlier, investors preferring pure (99.99%) gold coins had to opt for non-US coins. American buffalo coins were mainly created to meet the bullion needs of such investors and to offer them a US option.
Why Invest in Gold?
There are a number of factors that make gold the best investment option. Gold is a hedge against declining dollar and inflation. It is one of the few safe haven investments in these economically volatile times. It is a great way to diversify your investment portfolio. In spite of price fluctuations, you are least likely to make a loss on gold investments. Gold prices have been increasing dramatically since 2001 and experts expect the upward trend to continue in the coming years. Gold bars and coins are the most common ways of investing in the metal.
Purchasing American Buffalo Coins
American buffalo coins are one of the popular gold bullion coins. Investors, who prefer 24 karat gold coins over 22 karat ones often opt for gold buffalo as its purity and weight are guaranteed by the US government. You can either buy the coins directly from the United States Mint or from authorized dealers. Online purchase of gold bullion coins is gaining popularity rapidly as it allows investors to buy the coins conveniently within the comfort of their own homes.
While buying bullion gold coins online, it is extremely important to choose a reliable dealer. Well established business, comprehensive website offering detailed information on relevant topics, testimonials, in-depth subject knowledge and easy connectivity are some of the factors to look for while selecting a dealer. A serious search can help you choose the best among various online dealers.