Buffalo $50 Released By Mint

For the first time in its over 200 year history, the U.S. Mint has struck a coin from pure (.9999 fine) gold. On June 22, 2006 the West Point Mint released the new pure 24-karat gold coin which, like the American Eagle, bears a face value of $50.

For the new U.S. coins’ design, the mint turned again to James Earle Fraser’s popular “Indian-Buffalo” motif that appeared originally on the circulating nickel from 1913 through 1938. More recently it was employed in 2001 on the $1.00 Silver commemorative issue. The uniquely American design remains one of the most beloved and nostalgic of all time and continues the retro trend begun with the original silver and gold eagles of 1986. These resurrected the original designs of A.A. Weinman’s Walking Liberty Half of 1916 and Augustus St. Gaudens’ Double Eagle of 1907 respectively.

This will be the first bullion gold coin not portraying an Eagle in its design and will only be produced in a one ounce version, unlike the Gold Eagles which are available in 1oz, 1/2 oz, 1/4 oz and 1/10 oz. sizes.

West Point has produced some of the best designs and highest quality coins available to the collecting public. The $50 Gold 24-karat Buffalo coins will be softer in comparison to the Gold Eagles, produced out of 22 karat (.916 fine) gold. This will be a question and a challenge for the West Point Mint.

Will the 24-karat gold content have any effect on the coins quality? We asked PCGS Director of Grading Ron Howard for his opinion.

“I would be very surprised if the new pure gold coins were not more elusive in the very top grades, especially mint state 70, than their less pure predecessors”, Ron commented.

In the past collectors seeking to own the purest form of gold coins would have to look overseas or to foreign mints such as the Canadian Mint, which currently produces Canadian Maple Leafs, Austria which produces Austrian Philharmonics, Australia which produces the Australian Kangaroos and Lunar Gold coins and China, with it’s well-known Panda series. The U.S. Eagle, South African Krugerrand, Mexican 50 Pesos and the older coins of Austria and Hungary (100 Coronas) are alloyed with copper and sometimes silver. While this adds strength and hardness to the coin, it also adds a brownish cast that detracts somewhat from the pure yellow greenish color of pure gold.

In a recent study it was estimated 60% of gold coins traded in the world are struck from 24-karat gold. There is no question, investors and collectors worldwide prefer to own pure gold coins. This new coin offers an alternative for American collectors and investors to obtain examples of 24-karat gold coins made by the U.S. mint. At the same time, it will allow the U.S. mint an opportunity to be part of this large and growing world wide market.

Mint State coins will have an unlimited mintage and will be offered through authorized bullion dealers at a small percentage over the spot price of gold. The Proof version will have a maximum mintage of 300,000 and will be available directly from the mint priced at $800 each. Hopefully, the Buffalo bullion issue will add an important new product with international appeal to the offerings of the U.S. Mint.