History of the Buffalo Gold Coin

Because of its purity and rich history, the buffalo gold coin is a popular collector’s item amongst coin collectors and even those who do not collect coins.

Original Buffalo Coin

Seasoned collectors however will probably find the most value in this new coin. Nearly 100 years ago the same image on the new 24 karat gold bullion coin was used on Fraser’s 1913 Type 1 design. The image depicts a portrait of a Native American to tribute our country’s heritage and those who first inhabited the land. On the flip side is an American Buffalo symbolizing the pioneers and the westward expansion of the United States.

Buffalo Gold CoinThese chosen images were originally designed by James Earle Fraser for a nickel which made its first appearance in 1913. This nickel remained in production until 1938 because of its extreme popularity. It is because of this face that it brings much excitement to coin collectors nationwide and that the Gold Buffalo Coin will now be reproduced in a 14 karat gold.

These coins are still considered new and have been in production since December 22, 2005. Authorized by Public Law 109-145, they also go by the name of the Presidential $1 Coin Act. The Buffalo Gold Coins are also the first to ever to be produced in this high gold quality by the United States Mint. These coins are developed at the West Point US Mint.

Increase in Value

Within just the last few years, the value of the Buffalo Gold Coin has increased greatly. In 2006, a single coin was worth approximately $800. Just one year later the value went up by about $100. The coin’s value continued to increase reaching over $1,400 in 2009 and over $2,000 in 2011!  Part of the value of these coins are due to the lack of supply- they have been limited by Presidential $1 Coin Act of 2005 to a production cap of 300,000, although an expansion program has been declared by the US Min that will be made up of buffalo gold coins in fractional sizes. A Double Prosperity set has been specially packaged 8–8-08 containing a one-half ounce gold buffalo coin.

To Collect or Invest

Considering these facts, especially the great increase in the value of the coin over a small span of time, now is definitely the time to buy, whether you are an avid coin collector or just an investor looking to diversify your assets. There has been a slight decline in value due to the recession, which means it is the perfect time to buy before the market begins to pick back up.. Learning the art of buying and selling coins to flip a profit is definitely a hobby that requires great research and financial know-how. However, it is one of the few investment opportunities that allows buyers to enjoy a physical piece of history in between the time of purchase and selling. Others enjoy simply the act of collecting, and find owning a piece to be much more enjoyable than selling and trading.

Written by Peter Aiden. Peter is very knowledgeable in precious metals.