American Gold Buffalo Coin| Gold American Buffalo Coin: US Mint Suspends Production!

Published on March 22 2009 in Uncategorized

As of September 26, 2008, the US Mint has halted production of the $50 Gold American Buffalo Coin. The official word is that they cannot keep up with the demand for this coin. Amidst the current economic recession, investors crave the security of an investment with intrinsic value. Gold is the historically proven store of value in times of economic distress.

This coin was first made available in June & July of 2006, & was designed because American Investors were seeking Canadian Gold Maple Leaf coins & other foreign coins with a 99.99%, 24 karat bullion content, rather than the 91.67% bullion content if the American Gold Eagle coins. The coin has a $50 denomination & contains 1 full ounce of 99.99% pure 24 karat gold. In 2008, the coin was also minted in $5, $10, & $25 denominations with 1/10, 1/4, or 1/2 an ounce of gold in each coin.

The design is based on the Buffalo Nickel design created for the mint by James Earl Fraser in 1913. This design is widely considered as the most beautiful coin in the mint's history & this has translated very favorably when struck in gold as a huge 1 ounce coin. The coins are beautiful as well as valuable, & the stability of gold in the midst of economic turbulence has made these coins nearly impossible to find through traditional channels. When you can find them, you must purchase a minimum number of coins at a price 4-5% above the spot price of gold. This puts currently puts the American Buffalo Gold coin out of the reach of the average American investor at the time they could most benefit from owning them.

Why would the US Mint discontinue a gold bullion coin that would provide a shield to the economic losses currently experienced by so many? The official reason is an inability to keep up with demand, but see my post on 1964 Silver quarters & Gresham's Law to see what I feel is the real reason. Good money drives out bad, & the Federal Reserve needs you to continue spending their worthless fiat currency & investing in the stock market to keep our debt based economy running.

The good news is there are always a small number of these coins available on eBay & this may be the only way to purchase them at this time. Like the coins featured in previous posts, these coins will let you shelter an even larger chunk of money in a VERY small space. Links to the current auctions are included & they update in real time. The eBay feed that imports these auctions has been sorted to remove auctions for gold plated junk that can confuse the unwary. By buying only the slabbed coins graded by a reputable grading service you should be safe from counterfeit coins. Bookmark this page & check back often for more & more Gold American Buffalo Coin auctions.