Gold Eagle and Gold Buffalo coins are the two main gold coins issued by the US Mint. They are also two of the most significant coins in the physical bullion market. Let’s look at the main distinguishing factors of these two coins and help you answer the question: “Should I buy gold eagle or gold buffalos?”.
The gold American Eagle was first minted in 1986 by the West Point Mint and these 22-karrat gold coins come in different weights ranging from 1/10 ounce to 1 ounce. This particular category of gold coins has the Eagle minted on one side and Lady Liberty minted on the other. Gold Buffalo coins were released into the market more recently, in 2006. They are also minted with a higher fineness of 9999, or 24-karat gold. Like the American Eagles, Gold Buffalo coins are also minted by the West Point Mint and they have an image of a Native American Indian Chief on the front, with a Buffalo on the back.
American Eagle coins were first designed in the early 1900s. These beautifully designed 22-karat gold coins are an amalgam of alloy and gold; the reason for incorporating an alloy into the coin's composition is that it helps make the coin more durable, and helps to prevent minor scratches or dents.
The Gold American Buffalo coins are purer. They are minted with a fineness of 9999, or 24 karats. This is the purest gold coin currently available from the United States Mint. The purity of the gold Buffalo coins matches the purity of some of the highest quality gold coins in the market, including the Canadian Gold Maple Leaf. These coins have the word “LIBERTY” engraved on them, referencing American history via the Declaration of Independence. Unlike the Eagle, the gold Buffalo only comes in one size - the 1 Ounce gold Buffalo.
Currently, all gold coins manufactured on behalf of the US Mint are required to be manufactured using gold that is mined in the United States. Thus, both coins are manufactured using gold that has been mined in the United States. Both coins have been legalized and given a legal tender value under the Gold Bullion Act of 1985. And finally, both coins are minted by the West Point Mint.
Both the coins are highly sought after. Both can also be easily bought and sold to investors worldwide. For clients more interested in the coin's purity, the Buffalo is a better choice. For those more interested in the coin's durability, or for those who would like to purchase gold coins in sizes smaller than 1 Ounce, the Eagle is a better choice.
In a nutshell, both, American Eagles and Gold Buffalos are highly desirable and valuable coins that act as a good store of value. They are approved by the U.S. Mint and they are bought and sold worldwide.