American Buffalo Gold Bullion Coins – Things You Ought To Know

In April, the U.S. Mint revealed plans to strike in early 2006 new .9999 bullion coins to go after the growing world market for .9999 fine (24-karat) gold coins. Studies show that pure gold coins claim 60% of the world’s gold bullion coin market, which is some $2.4 billion annually. The Royal Canadian Mint’s Maple Leafs hold the number one spot for pure gold coins. However, problems with Maple Leafs have surfaced.

Most collectors I know do not take the time to read entire books on their favorite rare American coins, though I would recommend doing so. There are many great books on the subject.

However, you should be very careful in online auction because there is the greater risk of deception and scams. In this sense, before buying you should first check the reliability of the dealer.

What makes gold Liberty Heads so valuable is the fact that so many were melted down by the government in the 1930s. As a result, very few original personalized coins in classic condition remain.

The Mint is going after the bullion coin market, and bullion investors like to feel and heft their coins. Packaging the coins in tubes enables investors to more easily inspect their coins. Collectors, on the other hand, want their coins in as pristine condition as possible. Although capsules are excellent for protecting collector coins, coins individually packaged in capsules require more space for storage. The other aspect that the Mint has to consider is the coin’s theme.

If you are purchasing coins from a reputable dealer they will usually have a certificate of authenticity. They will offer a guarantee that the coins they sell are genuine. Make sure you know whom you are buying from. Buying from flea markets is sometimes risky and could be costly if you don’t know how to detect fake coins.

It is much better to buy with cash or at the very worst, a low interest loan. Avoid paying the double digit interest on your coins. Generally speaking, if you have to charge something, you can’t afford it. Only get what you can afford.

In summary, the advantages of coins are that they are relatively easily obtained and have almost nonexistent buying and selling costs. They can be stored locally and handled with ease. They are readily available to the collector to admire. Coins are also easily recognizable and can be assumed to have certain known traits, though if they have been tampered with, this won’t hold true. Tampering will probably be evident, however.