The U.S. Mint Sold 41,500 American Gold Buffalo Coins from May – July.
The U.S. Mint sold only 6,500 American Gold Eagle from February – April.
Sale of American Gold Buffalo coins (AGB) have been surging the past three months. Sales through July 24 were at 18,500, the largest one month total (outside of Januaries when dealers stock up on inventory) since November 2016.
Recent sales are a dramatic turnaround from March sales of 1,000 American Gold Buffalo which was the lowest monthly total since February 2011 when no American Gold Buffalo coins were sold.
2017 vs. 2018 American Gold Buffalo Sales
American Gold Buffalo coin sales in 2017 of 99,500 were the lowest annual total since the United States Mint began producing the AGB in 2006. Through July 24, 2018, the U.S. Mint has sold 72,000 American Gold Buffalo Coins, the same amount that the U.S. Mint had sold through July 2017. The difference between the two years, however, is that sales were decreasing in 2017 by the middle of the year, whereas sales have been increasing in 2018 during the same time period.
Combined sales of American Gold Buffalo and American Gold Eagle coins in 2017 were 402,000 ounces, the lowest annual total since 2007. Through June 24, 2018, the U.S. Mint has sold a total of 221,000 ounces worth of American Gold Eagle and American Gold Buffalo coins.
2017 vs 2018 Sales of American Gold Buffalo Coins
Sales of American Gold Buffalo Coins in January 2017 – July 2018
In times of financial turmoil, gold historically provides a safe haven. The time to buy gold is always before financial calamity occurs. Gold sales often act as a barometer as to the risks that are present in the market. In early 2018, U.S. gold sales appeared to be severely discounting those risks, while recent elevated gold sales at the U.S. Mint seem to indicate a recognition of the risks in the financial markets.
About the American Gold Buffalo Coin
American Gold Buffalo coins are 24K gold while American Gold Eagle coins are 22K. One ounce American Gold Buffalo coins are slightly smaller and lighter than their one ounce American Gold Eagle counterparts that contain 3% silver and 5% copper mixed in the alloy, bringing the total weight of a one ounce American Gold Eagle coin to nearly 1.10 ounces.
The American Gold Buffalo is the U.S. Mint’s answer to 24K gold coins issued by the Canadian and Austrian Mints. American Gold Buffalo coins are only minted in one ounce sizes, unlike their American Gold Eagle counterparts which are minted in one ounce, one half ounce, one quarter ounce and one tenth ounce sizes. In 2008, however, the U.S. Mint produced American Gold Buffaloes in one, 1/2, 1/4 and 1/10 ounce sizes. The coins were sold individually and in complete sets.
In 2006, their first year of mintage, 323,000 American Gold Buffalo coins were sold.
American Gold Buffalo coins are IRA eligible.
American Gold Buffalo sales data from USMINT.GOV
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.