As of September 26 2008, the US Mint ceased production of the American Buffalo Gold Coin series. The official word is that the huge demand for these coins could not be met. The series was introduced in 2006 to fill a void in the US bullion market for a 24 Karat coin to compete with the Gold Maple Leaf & other 99.9% pure foreign gold coins. These coins are highly prized as a hedge against inflation in these turbulent economic times & only limited quantities are still available on the secondary market.
The American Buffalo Gold Coin was first released for issue in 2006 in a $50 1ounce denomination that was 99.99% pure gold. American investors were purchasing the Canadian Gold Maple Leaf & other foreign bullion coins with 99.99% gold content, as opposed to the American Gold Eagle, which has only 91.67% gold content. The coin is based on the Buffalo nickel design created by James Earl Fraser in 1913, widely considered as one of the most beautiful coins in the US Mint’s history. This design has translated very well when struck as a gold coin, particularly the proofs. The coin has performed admirably in the 24K bullion market & is very popular. It was minted in both normal & proof varieties, with the proofs having a frosty finish to the relief of the coin & mirror like gold fields. In 2008 the coin was also minted in $5, $10, & $25 denominations containing 1/10th, 1/4, or 1/2 ounce of 99.99% pure gold, respectively.
On September 26, 2008, the mint announced that it could not keep up with the demand for this popular coin & suspended its production. That is the official word on the cessation of production, but one has to wonder if the economic downturn had anything to do with the halt in production. When the stock market is in distress & inflation is high, investors seek the security of gold to protect against losses. As long as there was an outlet for a gold investment provided by the government, savvy investors were likely to seek that investment at precisely the time that the Federal Reserve would like to force people back in the market. It is a shame that that hedge was taken away at precisely the time it would be needed most.
There remains a secondary market for the resale of these coins, particularly on eBay. As long as you stick with slabbed coins graded professionally by PCGS, NGC, or the like, your chances of buying a counterfeit are extremely slim. With a sharp eye & some research, you can quickly tell the difference between a genuine coin & a copy after you have looked at photos of a bunch of these coins.
Every savvy investor should own at least a coin or two of this type, even if it is only 1 of the $5 or $10 coins. They are a beautiful & easy way to shelter large chunks of money in a small amount of space. As the government spends & prints more & more money & inflation increases, gold is a safe bet to continue to increase in value as the value of the dollar declines.
Source by Andrew Spaeth