The 1 oz Gold American Buffalo – BU (Year Varies) is a highly popular and respected gold bullion coin. Introduced by the U.S. Mint in 2006, it was the first 24-karat gold coin ever produced by the United States government. This makes it a significant product for investors who prioritize high purity.
Here’s a detailed breakdown of its features:
Key Features and Specifications
- Purity: The coin is made of .9999 fine gold, which is 24-karat. This is one of the highest purities available in a gold bullion coin.
- Weight: It contains exactly 1 troy ounce of pure gold.
- Condition: “BU” stands for Brilliant Uncirculated, meaning the coin has never been in circulation and retains its original luster. It will be free from the signs of wear and tear you would find on a circulated coin.
- “Year Varies”: This means you will receive a coin from any year of issue (2006 to present), depending on the dealer’s current inventory. This is a common way to purchase bullion, as it often results in a lower premium over the gold spot price compared to buying a specific year.
- Face Value: The coin has a legal tender value of $50 USD, which is backed by the U.S. government. However, its market value is based on the current price of its 1 oz gold content.
- Design: The Gold Buffalo features the iconic design of the original Buffalo Nickel (Indian Head Nickel) by James Earle Fraser, which was in circulation from 1913 to 1938.
- Obverse: Features a powerful profile of a Native American chief.
- Reverse: Depicts a majestic American bison, a symbol of the American West.
Why It’s a Popular Investment
- High Purity: The .9999 purity is a major selling point for investors who want to own the purest form of gold available in a coin.
- IRA Eligibility: The coin is approved for inclusion in a self-directed Precious Metals IRA, making it an excellent choice for diversifying a retirement portfolio.
- Government-Backed: As an official coin of the U.S. Mint, its weight and purity are guaranteed, providing a high degree of trust and liquidity.
- Recognizable Design: The classic and well-known design adds to its appeal and recognizability, making it easy to trade with dealers worldwide.
- Competitive Pricing: The “year varies” option is a popular way for investors to buy this coin at a competitive price, as dealers can offer a slightly lower premium by selling from their general stock rather than sourcing specific years.
When purchasing a “random year” Gold Buffalo, you can expect to receive a coin that is in excellent, uncirculated condition, with its value directly tied to the daily fluctuations of the gold market.
