The U.S. Mint’s responsibility for issuing investment-grade bullion coins began with the passage of the Gold Bullion Coin Act of 1985, which led to the production and release of the American Eagle series in 1986. These coins are designed to provide a trusted store of value and wealth for investors.
Today, the Gold Eagle and Gold Buffalo are the two gold bullion coins produced by the U.S. Mint. While both coins are esteemed for their purity and craftsmanship, they have distinct features that appeal to different types of investors and collectors.
American Gold Eagle
The American Gold Eagle was established by the Gold Bullion Coin Act of 1985 to provide a trusted investment vehicle for precious metals. The first Gold Eagle was released in 1986.
The 1 oz Gold Eagle coin contains one full troy ounce of gold. The coin itself is minted with 22k, or 91.67% gold, with the remainder comprised of a mix of silver and copper. The alloyed composition makes it more resistant to scratches and dents, ideal for handling and storage.
The obverse design features Lady Liberty holding a torch and olive branch. The design was created by Augustus Saint-Gaudens and was originally used on the $20 Saint-Gaudens Double Eagle from 1907 until 1933.
The reverse of design of coins minted until the middle of 2001 depicts a family of eagles that was designed by Miley Busiek.
Partway through the 2001 mintage year, a new design featuring the head of a bald eagle that was created by designer Jennie Norris.
Gold Eagle Premiums and Liquidity
The longer history and extensive production have made it a staple in the bullion market with investors.
When buying, Gold Eagles typically carry a lower premium over the spot price of gold compared to the Gold Buffalo due to its 22k composition and wider availability.
The Gold Eagle is a highly recognized and traded globally, making it a very liquid asset. When selling, dealers will often offer a small premium over spot price during normal market conditions.
Approved for inclusion in Precious Metals IRAs.
American Gold Buffalo
The American Gold Buffalo was authorized by the Presidential $1 Coin Act of 2005 with the first issue available in 2006.
Although newer, it quickly gained popularity with investors seeking the highest quality 24k gold.
The overall design is based on the 1913 Buffalo Nickel, designed by James Earle Fraser. The obverse features a profile of a Native American chief.
While the reverse features a depiction of an American bison, also designed by Fraser.
Gold Buffalo Premiums and Liquidity
When buying a Gold Buffalo coin, it is common to find that these carry a higher premium over the spot price of gold due to its pure gold content, collectible design and lower annual mintages.
These coins are also highly recognized and traded in the secondary bullion markets, though slightly less liquid than the Gold Eagle due to its newer introduction. When selling to a bullion dealer or coin store, it is common to receive an offer that is priced slightly above melt value under normal market conditions.
Approved for inclusion in Precious Metals IRAs.
.999 vs .9999 fine
Both the American Gold Eagle and the American Gold Buffalo are excellent choices for gold investors and collectors, each with unique attributes.
Aside from the design, the primary difference between the coins is the difference in the purity of the gold.
The Gold Eagle, with its historical design and durable composition, is ideal for those seeking a robust and widely recognized investment.
While each contain a full 1 troy ounce of fine gold, due to the inclusion of the copper and silver, the American Eagle is 22k gold, or 91.67% with an overall weight of 1.0909 troy ounces.
The Gold Buffalo was created due to investor demand for 24k gold coins, such as the Canadian Maple Leaf or the British Britannia, and appeals to purists and collectors who value its 24k gold purity and classic American design.
Availability
The US Mint manufacturers bullion coins based on monthly sales demand. This just in time, mint on demand model, has become common in government minting operations as a way to keep manufacturing costs low.
The American Gold Eagle is more popular with investors due great awareness because of its long mintage history. Monthly sales figures show that more investors buy American Gold Eagle coins, with an average of 18,000 coins for the 1 oz denomination, with even larger amounts in some of the fractional sizes such as the 1/10 oz and 1/4 oz coins.
Monthly sales figures for the American Gold Buffalo average around 14,500 coins.
Both of these coins are backed by the US Mint. Current year coins are readily available from online bullion dealers and coin stores throughout the country. It is important to note that when shopping for gold coins, the dealer premiums on current year coins are typically higher than those in the secondary market, due to premium increases from the US Mint.
Ultimately, the choice between the two depends on individual preferences regarding purity, design, and investment goals. Whether you prefer the historical significance and durability of the Gold Eagle or the pure, high-quality gold of the Gold Buffalo, both coins represent a valuable addition to any investment portfolio.
