American Buffalo
Also: Gold Buffalo, US Buffalo
The American Buffalo is the only official gold coin of the USA with a fineness of 999.9/1000 (24 carat), minted by the United States Mint since 2006.
The American Buffalo is the first and only gold coin that the United States issues as legal tender with a fineness of 999.9/1000 (fine gold, 24 carat). Since its launch 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 largely determines the market value of the coin.
History and background
The name and design go back to the legendary "Buffalo Nickel" of 1913-1938, designed by the sculptor James Earle Fraser. The obverse shows the head of a Native American in profile, and the reverse an American bison (Bos bison), popularly known as the "Buffalo". With the "American Buffalo Gold Bullion Coin Act" of 2004 - part of the Consolidated Appropriations Act - the US Congress instructed the Mint to issue a high-purity gold coin modelled on the Buffalo Nickel: a direct response to growing demand for 24-carat investment coins previously served above all by the Vienna Philharmonic and the Maple Leaf.
Technical data at a glance
| Property | 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 are made of the same fine gold (999.9/1000) with no alloy content. This clearly distinguishes the Buffalo from the American Eagle, which consists of a 91.67 % gold alloy (22 carat) with copper and silver content.
Calculating the melt value
The intrinsic metal value of a 1-ounce coin follows 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 practically equal to the gross weight. You can determine the exact value with the Melt Value Calculator.
Authenticity testing
Owing to its high value, the American Buffalo is a frequent target of counterfeiting, especially so-called tungsten counterfeits. The following test methods are recommended:
- Weight check: the 1-oz coin weighs exactly 31.1035 g - deviations over ±0.05 g are suspicious. Use the Coin Weight Check.
- 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 fake.
- Ping test: a genuine gold coin produces a bright, long tone.
- Sigma Metalytics / XRF: professional devices measure conductivity or elemental composition non-destructively.
For a structured check, the Coin Authenticity Test is available.
Tax classification
In the United Kingdom, the American Buffalo qualifies as investment gold: as a gold coin of fineness of at least 900‰ minted after 1800 whose selling price does not exceed the open-market value of the gold by more than 80 %, it is VAT-exempt under HMRC rules (in line with the EU VAT Directive 2006/112/EC on which UK investment-gold relief was based). As a foreign, non-UK coin it is not legal tender in the UK, so gains on disposal are subject to Capital Gains Tax above the annual exempt amount - unlike UK legal-tender coins from The Royal Mint, which are CGT-exempt. There is no German one-year speculation period. Not a substitute for tax or investment advice - please seek individual guidance.
Premium and market
The premium (agio) on the American Buffalo in the trade is typically between 3 % and 6 % over the spot price, depending on dealer and market conditions. Proof variants are traded at a markedly higher mark-up and appeal to collectors rather 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-carat investment coins in the world and a direct alternative to the Vienna Philharmonic or Maple Leaf.