With the recent market turbulence, many investors are turning to gold in a bid to mitigate their risk. You see, gold is widely viewed as a great hedge against inflation primarily because it has an inverse relationship with the US dollar. When the dollar weakens, gold prices tend to soar. So, investors typically convert their funds into gold when the economy looks shaky.
That said, there are various options for gold bars and coins in the market, with coins being generally easier to sell and trade. One of the most popular gold coins you will find today is the American Buffalo, sometimes known as the Gold Buffalo.
The American Buffalo coin is a limited-edition coin produced by the US Mint whose authenticity is guaranteed by the US government. It is also one of the most sought-after products by gold investors. Now, if you’re thinking about investing in this coin, here are some things you should know:
An Overview of its Origin
The American Buffalo was first introduced in the market in 2006 under the Presidential $1 Coin Act 2005. This Act laid down the guidelines for striking and issuing $50 Gold American Buffalo bullion and proof coins. This included everything from the coin’s sourcing to design, volume, and price.
The introduction was a key moment in US history, as it was the first time the US Mint issued a .9999 pure 24-karat gold coin. Today, all US bullion coins, including the American Buffalo, are struck at the West Point Mint in New York.
The Coin’s Design
The design of the American Buffalo was derived from James Earle Fraser’s design for the Indian Head nickel, a five-cent piece minted by the US Mint between 1913 and 1938.
The observer, or front of the coin, has a right-facing image of a Native American in honor of America’s first inhabitants. The image is not of a single Native American person but rather of three chiefs from American Indian Tribes. You will also see the inscription ‘LIBERTY’ as well as the year the coin was minted. Below the year is the letter’ F,’ in honor of Fraser. Proof American Buffalo coins also feature a ‘W’ mark on the left of the portrait below the feather, while bullion coins do not.
The reverse, or back of the coin, has a left-facing buffalo, also known as the American bison, standing on top of a mound. At the top are the inscriptions ‘United States of America’ and ‘E Pluribus Unum,’ a traditional US Latin motto that translates to ‘Out of Many, One.’ At the bottom, the coin features ‘In God We Trust,’ ‘$50,’ and ‘1 oz. .9999 Fine Gold.’
Other Key Features
Both the bullion and proof versions of the American Buffalo have and are still minted in 1-ounce coins. They come in a diameter of 1.287 inches or 2.70mm and a thickness of 0.116 inches or 2.95mm.
Diversify Your Portfolio with the American Buffalo Coin
As you can see, the American Buffalo is definitely one of the best gold coins you can buy today, whether you are just looking to explore new investments or want to shield your portfolio against growing market risks. So, where can you buy these coins? You can find the coins online, from trusted gold distributors or exchanges.