American Eagle vs American Buffalo: Which Gold Coin is Better?
Many investors and collectors are confused about whether to buy an 1 oz. American Eagle gold coin or an 1 oz. American Buffalo gold coin. Both coins offer gold bullion value, but they have distinct differences that can affect their value and use.
Basic Specifications
Both the American Eagle and American Buffalo gold coins weigh 1 troy ounce (oz.) and are popular choices for investors and collectors. However, they have slightly different compositions:
American Eagle: 91.67% pure gold (22 karat) American Buffalo: 99.99% pure gold (24 karat)Despite these differences in purity, both coins still possess significant bullion value based on their weight and gold content.
Numismatic Value and Collector Appeal
The American Gold Buffalo coin is particularly favored by collectors and numismatists due to its numismatic value, which is often higher than its bullion value. To achieve top prices, these coins need to be certified and graded at a very high standard, specifically a perfect 70 grade (PF-70).
A Burnished Proof 1 oz. American Gold Buffalo in PF-70 grade can command up to $4000. However, this is a premium collector coin. For those interested in a larger quantity, a tube of 20 uncirculated Buffalo coins can sell for over $40,000. In comparison, a tube of 20 American Eagles in uncirculated condition typically sells for $40,000 to $42,000.
Personal Preference
Ultimately, the choice between the American Eagle and American Buffalo gold coins comes down to personal preference. If you have a preference, go with it. However, American Eagles may trade at a lower bid-ask spread compared to Buffalo coins, making them a bit more liquid for buyers and sellers.
Additional Insights
To better understand the difference between these two coins, you may want to read a relevant article. Below is a quote from such an article:
The American Gold Eagle is made of 22 karat gold and the American Gold Buffalo is made of 24 karat gold. Both coins contain 1 troy oz. of Au – the element gold. The American Gold Eagle was designed after other popular gold coins originally meant for circulation, while the American Gold Buffalo was designed to compete with other 24 karat gold coins such as the Canadian Gold Maple Leaf. Thus, the Gold Buffalo is much softer than the Gold Eagle and should be handled with extreme care to better preserve its numismatic value.
The Eagle contains some additional copper to provide strength and durability, whereas the Buffalo is more susceptible to damage due to its higher purity and softer composition.
In summary, when deciding between the American Eagle and American Buffalo gold coins, consider your needs and preferences. Both coins offer gold bullion value, but the Buffalo has a higher numismatic value and is more suitable for collectors.