2009 American Buffalo Gold Proof Coin

Today October 29, 2009 at 12:00 Noon ET, the 2009 American Gold Buffalo Proof Coins will go on sale at the United States Mint.
Only one ounce proof coins will be offered, which is a sharp reduction from the number of collectible Gold Buffalo options offered last year. Even this single offering had been in doubt until the US Mint’s announcement earlier this month.

Each coin is minted in .9999 fine, 24-karat gold, packaged in a hardwood box with a matte finish and faux leather insert. The coins are priced at $1,360 each. There is no ordering limit or maximum mintage set for the product. These details (except for the price) were revealed last week.

There are a few dueling factors that will play into the initial sales levels for the coins. The pent up demand for this popular coin suggest strong opening sales. This is supported by the continuing brisk pace of sales for the bullion version of the coin that just went on sale October 15, 2009. In the past two weeks, the US Mint has already sold 110,500 coins. Additionally, since there are no ordering limits in place for the 2009 Proof Gold Buffalo, collectors and dealers will have the opportunity to order in quantity.

On the other hand, there are a few factors which may serve to diminish early demand for the coins. The current price of the coins may serve as a deterrent. The US Mint sets prices for numismatic gold products based on the average of the preceding week’s London Fix gold prices. For the relevant period, the average is $1,050.28. Even though the current price of gold is $1,035 per ounce, the coins are priced based on the US Mint’s $1,050 to $1,099.99 pricing tier. If the average price of gold had been 29 cents lower, the coins would have been priced $50 cheaper. Some collectors may delay purchases to see if the average price of gold allows cheaper purchases in the coming weeks.

A second factor which may diminish the pace of early and overall sales for the coin is the lack of a maximum mintage. As discussed previously, the fact that the US Mint is not placing household limits or a maximum mintage, suggest that they are prepared to supply the coins in whatever quantity the market will bear. The resulting high mintage from this scenario diminishes the longer term prospects for the coins, especially compared to the stand out performance of last year’s collectible Gold Buffalo offerings.

Today on Coin Update News:
US Mint Sales Report for 10/25/2009

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Comments

  1. Tyrone says


    Gold does not keep going up. People that put too much in gold are just asking to get burnt. Gold is a good investment, but one should be wary of gold right now at it's peak.

    Folks, gold is not going up, your dollar$ are going down. I suggest anyone that is not becoming well-versed in inflation and monetary crisis to start learning. The actions of your government have put gold on a path to $2000/oz. This will not make you rich, it will simply preserve your purchasing power if you exchange fiat paper for it. If they stay on this course, the end-game could be dire.

    As always, do your homework and set your own risk levels.

  2. Hidalgo says

    I really feel sorry for many of you who are getting caught up in the frenzy of buying gold.

    I remember the days when the price of gold was being pushed up to the $800 per ounce level. Very high at the time. People bought gold like crazy. But when the bubble burst, many people lost money.

    We're experiencing a bubble period right now. And bubble conditions don't last forever. Please keep that in mind. Look at what happened when there were bubbles in the housing market and stock market. One day, some day, we may be able to recoup lost values in both markets, but it will take time. Some can and will be said with the gold market.

    Don't get caught up in the frenzy. The best time to buy is when demand — and prices — are low.

  3. Bowtie says

    Inflation adjusted, housing prices are never coming back. I don't think we have a gold bubble yet, although we will. When everyone is buying gold to the same extent people were buying houses, then you have the bubble.

  4. Anonymous says

    Anonymous said @4:54…

    I don't think they should produce more buffalo gold coins than there are real buffalos…

    Bring back the buffalo.

    I agree completely! That would keep mintages low. To be close to them in person is amazing! Besides being magnificent beasts, they taste GREAT!

  5. Anonymous says

    The proof coins are made with the collector in mind not the speculator. Yes, even as a collector you like to see your coins increase in value. But you are never disappointed if you collect coins you really like. If you are a pure speculator you are on and emotional roller coaster in a guessing game and subject to massive disappointment if value drops…

  6. Anonymous says

    Actually the best part of Buffalo is the testicle. Try it, you'll like it. Wings of buffaloes are all skin.
    Oh sorry,I thought I was in the food blog. What do I know about coins.

  7. Anonymous says

    I bought two Buffalo coins. To me, its a collectors piece that I believe will hold its value and beauty. The same goes for the UHF. I like the Buffalo because its a proof coin. I chose not to have either graded. They are in sealed plastic holders and I have the receipts for both. The next person that owns them can have them opened and placed in those big holders. I do agree that the US Mint has began to charge top dollar and their supplies are very limited in regards to silver. The 2009 Silver Proof set was WAY overpriced!

  8. Hidalgo says

    Part of the value will be based on the price of gold next year. Gold values are very unstable, so it will be hard to predict where its value will be next year. Now that the recession has "officially" ended in the US, it's anyone guess where the price of gold will be next year.

    ————————-
    Anonymous said…

    does anyone know what these proff buffalos will be worth this time next year

    November 1, 2009 11:25 AM

  9. Dave says

    I recently ordered a bullion buffalo… first time I’ve purchased the bullion version. I don’t send coins in for grading… not my gig. Should I leave it in the plastic, or put it in a capsule? I would think it would look nicer in a capsule than a crinkly plastic baggie.

  10. Anonymous says

    Dave,

    I prefer to leave my coins in their original state (including bullion buffalo coins in their plastic), but you should do with it whatever would make you happiest. It's your coin and your collection, so you should organize and present it however you wish.

  11. Anonymous says

    There is a big difference between gold and houses. Gold has a limited supply…houses can be built anywhere (including on cliffs in CA where they fall into the ocean). The demand for houses is also geographically limited (why buy a house in China). However, gold is in demand universally.

    Not saying what the price of gold will do…just saying that comparing houses and gold is like comparing apples and oranges.

    All that said, the proof buffalo is a collectible (and a beautiful one at that).

  12. Bowtie says

    also you technically rent houses from the state as you pay property taxes on it. gold is harder to tax.

  13. Dave says

    Maybe it’s just me, but the article posted above makes gold look that much more attractive to me.

  14. Anonymous says

    I find it hilarious that shorters of gold come to this coin collecting website to try and dissuade collectors from buying what they do for a hobby. As they like to say, LOL or ROFLMAO – whatever…

    The stock sites are the same…shorters always trying to scare long-term holders into selling their stock to drive down the price so they (the shorters) can make money. Like I'm going to go out and sell (or not buy) gold coins that I collect as a hobby just because they tried to scare me.

    Notice the faux concern that they have for the way collectors spend their money. Like they really, really care…what a joke! Truth be known, they have basically placed a monetary bet that the price of gold drops and are just trolling sites they think can help them make profit (like the actions of collectors on this site is going to affect the worldwide price of gold).

    To All Shorters – You should be trolling the gold selling websites and stock boards. This is a numismatic website.

  15. Anonymous says

    Gold is going up and will continue to do so for the next year I believe. I buy the Buffalo Proof gold coins and have since they began because the picture of the Indian looks exactly like my Dad. He is 1/8 Indian and it has always amazed me to look at my Dad's picture on the coin. Also I do think it is the most beautiful Gold coin the US mint has produced. I don't care if the value goes up or down for now because I am thinking of future generations having them to enjoy.
    I also think the coin in silver is beautiful. It is one coin that represents our country from the beginning of its birth. I love Sacagawea dollars also for that reason!

  16. Anonymous says

    This is a great site on coins and collecting. Anyone remember the movie "Throw Momma from the Train" when Danny Devito shows Billy Crystal his coin collection? I was expecting him to pull out a coin album nearly full of coins and he pulls out a little bag with about 65 cents in coins that his dad had given him from various events that had meaning to him. Now this was only a movie but it represents the collector. You don't have to make anyone else happy with your collection. Just yourself. Something with value and meaning to you may not be to someone else.

  17. Anonymous says

    From Dave Harper:

    "Gold proof one-ounce Buffalo coin sales got off to a strong start.

    In the first three days since orders began being accepted by the Mint on Oct. 29, collectors ordered 19,600 coins. There was no individual order limit imposed.

    This number already equals the total number of the 2008 proof one-ounce Buffalo pieces sold."

    It appears that the Mint will NOT be dropping the price on the 2009 W Buffalo Proof as the weekly London AM fix will very likely average above $1050/ounce.

  18. Anonymous says

    Gold is up $20 per ounce today… here we come $1,100 per ounce!

    I just love how China wants to back their currency with gold… google "china buying gold" and read the articles that it brings up, AND THEN TELL ME THE PRICE OF GOLD AIN'T GOING THROUGH THE ROOF.

    It's common sense and basic math, the price of gold has and will continue to take off like a rocket! Thanks, commies!

  19. Anonymous says

    so much for you know it all 's saying gold gonna go down. This is just a trend that's gonna continue. dollar deflaits gold inflates dollar defates gold inflates. Country 's are going to continue to use bullion to protest there wealth with china grownig to conquer the world there be next to stock up just to be a superpower.It might go down here and there but will climb little by little or 40.00 a day !

  20. Anonymous says

    I agree with the previous poster. I read a good many of the previous posts. So many of you smart folks here waited to get a "better" price. Not smart. If you know anything about gold, and it's prices recently, you'll know that for the past 8 years, year over year, gold has seen an increase in price. Why should that stop now, right before the next bailout package is announced? Wake up. As far as the idiot who said this Buffalo Proof coin is a "rip off", you're as clueless as can be, and no nothing about numismatics. Read, listen and learn, young grasshopper.

  21. Anonymous says

    On the other hand what your seeing know is a price and demand senerio.
    After all the high roller sell there gold price will go down.The only thing fueling this demand is record high prices. The fact is with all the scrap gold and increase in mining gold will be in abundence and the bouble will burst. Its a good time to sell if you bought cheap but not to buy.

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