American Buffalo
Also: Gold Buffalo, US Buffalo
The American Buffalo is the only official gold coin of the United States with a fineness of 999.9/1000 (24 karats), minted by the United States Mint since 2006.
The American Buffalo is the first and only gold coin issued by the United States as legal tender with a fineness of 999.9/1000 (fine gold, 24 karats). Since its inaugural year of 2006, it has been minted at the West Point Mint and is aimed primarily at investors who value the highest purity. The current gold price is the decisive factor in determining the market value of the coin.
History and Background
The name and design draw on the legendary "Buffalo Nickel" of 1913–1938, designed by sculptor James Earle Fraser. The motif shows on the obverse (front) the profile of a Native American head, and on the reverse an American bison (Bos bison), commonly known as "Buffalo". With the "American Buffalo Gold Bullion Coin Act" of 2004 – part of the Consolidated Appropriations Act – the US Congress mandated the Mint to issue a high-purity gold coin based on the Buffalo Nickel: a direct response to the growing demand for 24-karat investment coins, which had previously been served mainly by the Vienna Philharmonic and the Maple Leaf.
Technical Specifications at a Glance
| Specification | 1 oz | 1/2 oz | 1/4 oz | 1/10 oz |
|---|---|---|---|---|
| Weight (g) | 31.1035 | 15.552 | 7.776 | 3.110 |
| Fineness | 999.9 ‰ | 999.9 ‰ | 999.9 ‰ | 999.9 ‰ |
| Face value (USD) | 50 | 25 | 10 | 5 |
| Diameter (mm) | 32.7 | 27.0 | 22.0 | 16.5 |
All variants consist of the same fine gold (999.9/1000) without any alloying components. This clearly distinguishes the Buffalo from the American Eagle, which consists of a 91.67 % gold alloy (22 karats) with copper and silver components.
Calculating the Melt Value
The intrinsic metal value of a 1-ounce coin is derived directly from the spot price:
Melt value (€) = Fine weight (oz) × Gold price (€/oz)
= 1 oz × current gold price
Since the fineness is 999.9/1000, the fine weight is virtually equal to the gross weight. Calculate the exact value with the Melt Value Calculator.
Authenticity Verification
The American Buffalo is, due to its high value, a frequent target of counterfeiting, in particular so-called tungsten forgeries. The following verification methods are recommended:
- Weight check: the 1 oz coin weighs exactly 31.1035 g – deviations of more than ±0.05 g are suspicious. Use the Coin Weight Checker.
- Dimension check: diameter 32.7 mm, thickness 2.95 mm.
- Magnet test: gold is not magnetic; if a magnet attracts the coin, it is a forgery.
- Ping test: a genuine gold coin produces a clear, long-lasting tone.
- Sigma Metalytics / XRF: professional devices measure conductivity or elemental composition non-destructively.
For a structured check, the Coin Authenticity Check is available.
Tax Classification
As an investment coin with a fineness of at least 900/1000 and a selling price calculated on the basis of the gold price that does not exceed the material value by more than 80 %, the American Buffalo fulfils the requirements for VAT exemption in Germany and Austria under § 25c UStG (DE) or § 6 para. 1 Z 8 lit. j UStG (AT). Gains from a sale may be income-tax-free after a holding period of more than one year (§ 23 EStG). This is not a substitute for tax or investment advice – please seek individual advice.
Premium and Market
The premium (agio) on the American Buffalo in the trade is typically between 3 % and 6 % above the spot price, depending on the dealer and market conditions. Proof variants (polished plate) are traded at a significantly higher premium and are aimed more at collectors than pure investors.
In Brief
The American Buffalo combines the highest purity (999.9 ‰), an iconic American motif, and the status of official US legal tender – making it one of the most significant 24-karat investment coins in the world and a direct alternative to the Vienna Philharmonic or Maple Leaf.