The American Buffalo, also known as a Buffalo , is a 24-karat gold bullion coin first offered for sale by the United States Mint on June 22, 2006, and available for shipment beginning on July 13. This was the first time ever that the United States Government has minted pure (. 9999) 24-karat gold coins for the public. The coin has a legal tender (face) value of US$50. The price of the proof coin is $800.
In addition to requiring a presidential dollar coin series to begin in 2007 and redesigning the cent in 2009, the Presidential $1 Coin Act of 2005 mandated the production of a one-ounce 24-karat gold bullion coin with a face value of $50, and a mintage limit of up to 300,000 coins.
Design
The design of the American Buffalo gold bullion coin is a modified version of James Earle Fraser’s design of the Buffalo nickel (Type 1), issued in early 1913. After the mound was removed, the Type 2 variation continued to be minted for the rest of 1913 and every year until 1938 (except 1922, 1932, and 1933, when no nickels were struck). The obverse depicts a Native American man, who Fraser said he based on a mixture of features from three American Indian men (John Big Tree, Iron Tail and Two Moons) from three different tribes that posed for him to be sketched. On the reverse stands an American bison on a mound of dirt, commonly referred to as a buffalo. The animal on the reverse is believed by most to be a bison named “Black Diamond” that lived in New York City’s Central Park Zoo during the 1910s. It is said that Fraser had to have someone distract the Buffalo while he sneaked up beside it to draw it. Otherwise, the buffalo would stare at him and Fraser wouldn’t get the profile he wanted. [citation needed] Fraser’s nickel design is generally considered to be among the best designs of any U. S. coin.
On the American Buffalo coin, the mound area of the reverse with the words “FIVE CENTS” has been changed to read “$50 1 OZ. . 9999 FINE GOLD”. Also, the motto “IN GOD WE TRUST”, appearing on all U. S. gold coins since 1908, can be seen on the reverse to the left of and beneath the buffalo’s head
Distribution
All U. S. bullion coins, including the American Buffalo gold piece, are currently being struck at the West Point Mint in New York. According to the U. S. Mint website, only the proof version of the Buffalo gold coin bears the mint mark “W” on the obverse; the bullion version does not have the “W” mark. The 2006 and 2007 coins have only been issued in a one ounce version, but it is expected that the sizes available for American Eagle gold coins will eventually be offered with the American Buffalo bullion coins.
After a long wait by both collectors and investors, the uncirculated version of the American Buffalo gold piece was made available to coin dealers on June 20, 2006. Collectors who wanted to purchase the proof version from the mint were given the opportunity to place their orders with the Mint beginning on June 22. The 2006 proof quality coin has a strict mintage limit of 300,000, with an additional enforced limit of only ten (10) coins per household. The catalog number of the 2006 proof coin at the US Mint is (BA6).
The coin was created in order to compete with foreign 24-karat gold bullion coins. Since investors usually prefer 99. 99% pure gold over the 91. 67% gold used in the American Gold Eagle, many were choosing non-US coins, such as the Canadian Gold Maple Leaf, to meet their bullion needs. With the American Buffalo coin, the U. S. government hopes to increase the amount of U. S. gold sales and cash in on the 24-karat sales, which makes up about 60% of the world gold market.
Also on June 22, the Mint transferred two of the American Buffalo coins to the Smithsonian Institution’s coin collection because of their historic value