Mint News Blog

News, Information, and Commentary on US Mint Products

Friday, March 11, 2011

2011 Gold Buffalo Bullion Coins

On Monday, March 14, 2011, the United States Mint will begin accepting orders from authorized purchasers for the 2011 American Gold Buffalo bullion coins. This will represent an earlier start than the prior two years.

In 2009, the US Mint was not able to release the Gold Buffalo bullion coins until October 15. The situation improved last year, when the coins were first available on April 29.

Since upcoming release will be for the bullion version of the coin, sales will take place through the US Mint's authorized purchaser network. The primary distributors approved for gold bullion purchases will be able to order the coins from the Mint in bulk quantities based on the market price of gold plus a mark up. The coins will then be resold for broader distribution to the public.

The US Mint has indicated that there will be a "sufficient quantity" of the coins available, so the allocation program (rationing) will not be necessary.

Since the start of the series in 2006, mintages for the bullion versions of the American Gold Buffalo have been high enough so that there are no significant premiums attached to any of the issues.

Gold Buffalo Bullion Coin Mintages
2006 337,012
2007 136,503
2008 189,500
2009 200,000
2010 209,000

The collector version of the 2011 Gold Buffalo is expected to go on sale May 19, 2011. These will be sold directly to the public since they are numismatic products. The US Mint is expected to offer a one ounce proof version of the coin only. This has been the typical collector offering for the series with the exception of the 2008-W Gold Buffalo Coins, which were available in proof and uncirculated versions, across four different weights.



At March 11, 2011 at 2:13 PM , Anonymous Cooldude said...

any idea how much the 2011 gold buffalo bullion would cost if bought by an individual collector?

At March 11, 2011 at 2:16 PM , Blogger Mint News Blog said...

One of the AP's has pre-orders at spot gold price + $90.

At March 11, 2011 at 2:35 PM , Anonymous Anonymous said...

Gold will be like oil.
Too high of a price, demand will fall.
$90 over spot, seems excessive.

At March 11, 2011 at 4:18 PM , Anonymous Anonymous said...

The price of gold is so high, that the price of the bullion is driving values.

That's really sad. When gold and silver prices fall, so will the value of coins purchased at today's prices....

At March 11, 2011 at 4:26 PM , Anonymous Anonymous said...

$90 over spot is 6.63% when gold is $1420

Silver premiums are REALLY going up. That same AP sells a one ounce silver eagle for $42.28. If silver is $35.96, that's 6.32/oz OVER spot, or 17.5% over spot.

Michael, aren't these premiums higher than normal...I know the Mint increased the premium on SAE's to the AP's...I think to $2.99/ that right?
But still, 17.5% over spot seems very, very high.

At March 11, 2011 at 5:13 PM , Anonymous Anonymous said...

Agreed with the previous poster. I'm done buying gold. It's too rich for me. I'll buy it here and there in fractionals if the price is right.

With that kind of money I'm more inclined to research out the cheapest Dow dividend stocks selling at multi-year lows and doing a buy and hold strategy given my age.

But all the interest and speculation about gold's future keeps the dream alive of soaring prices as I hover over my small hoard snickering the word "Excellent!" in my best Simpson's character Mr. Burns voice!

Still, nothing is better than sitting and holding those slabbed Buffaloes!

At March 11, 2011 at 7:56 PM , Anonymous Anonymous said...

For those waiting for gold to go down, I just read that the Chinese are not letting their people buy gold for personal investment. If only 1% of them do that's 10 million gold buyers. This may be the lowest price we'll see for this Buffalo.

At March 11, 2011 at 8:14 PM , Anonymous Anonymous said...

I agree that the premiums are high. A big reason for this is due to the scarcity of silver and gold these days. Just look around at what's happening to the dollar (the old safe-haven), the economy, oil prices, and events in the world. Toss in a weak president, QE2, and our government's insatiable appetite to spend money, and nothings going to be changing soon. With all this in mind, demand for gold and silver have skyrocketed recently, so yes, premiums are going to be higher.

Those that believe gold and silver are going to be "more affordable" sooner are living a pipe dream. Gold is not a stock; it is the oldest form of real currency in the history of mankind. Nothing has changed (and if it has, nobody has told the Chinese, Russians, Arabs, or Indians).

At March 11, 2011 at 8:30 PM , Anonymous Anonymous said...

A couple years back, not wanting to collect everything, I decided to collect only the proof versions of the buffaloes. That turned out to be a good decision.

At March 11, 2011 at 9:59 PM , Anonymous Anonymous said...

It absolutely boggles my mind the number of people on this blog who think that the current 30 year high gold price is the new gold floor for the next 30 years. These gold prices are the result of a weak dollar, and nothing else. The main use for gold is JEWELRY AND COINS, and there is a limit to what people will pay to have these things made out of real gold.

Not to mention, there is basically an unlimited supply of gold and silver, limited only by the huge waste of energy and environmental damage caused by mining it. Anyone who has ever seen the gold storage underneath Wall Street, which does nothing, and goes nowhere but occasionally from cage to cage in trades, will not say that gold is "scarce."

Despite my belief, I am NOT selling my pathetically small store of gold now, because I am just a collector, not a PM speculator. I would like to hear from anyone who has ever read Vonnegut's excellent book _Galapagos_, and explain to me why the economic scenario posited in that book is implausible. (PS Being plausible is not the same thing as being likely.)

But I agree with the person who said these Buffalos should be passed on for now. Not a good time to buy gold bullion that will never carry a premium.

At March 12, 2011 at 6:22 AM , Anonymous Anonymous said...

The value of many gold and silver coins right now is based on the price of both precious metals, not scarcity.

So if anyone buys gold or silver coins right now, keep in mind that if the price goes up, so will the value of the coins. But if the price goes down, then there goes your investment.

What will the future hold? No one knows, not even the speculators on this blog....

At March 12, 2011 at 8:54 AM , Anonymous Anonymous said...

CORRECTION!! I meant to say the Chinese are NOW letting their people buy gold. They are buying tons keeping the price up.

At March 12, 2011 at 8:58 AM , Anonymous Anonymous said...

Yes, now the premiums are a little higher than usual. But look at the buy prices. Dealers like APMEX buy stuff back not much lower than they sell it. Right now they pay $2 over spot for 2011 Eagles and sell them for $3.64 to $5.14 over depending on how many you buy. And keep in mind there are order processing costs and that $5.14 over is for 1 coin that they make $3.14 on.

At March 12, 2011 at 4:41 PM , Anonymous Anonymous said...

This discussion is why I keep my PM investment to 10% of my total net worth. The question is when to sell. My father told me never to be a pig when it comes to profit taking. I remember owning Apple stock at $19 a share. It went to $24 and then back down to $19 on poor earnings. I got nervous and sold out. What's Apple now? My best friend bought wheelbarrow loads of Netflix in 2003 for like $4.50 per share. I told him he was insane because Blockbuster would eat them alive. He is swimming in it now at $205.00 PER share!

The whole thing is a crap shoot. We can all try to make educated decisions. Its all about timing and unforeseen occurrences.

Good luck to those shelling out over $1500 an ounce for bullion and buying slabbed numismatic gold as investments.

At March 12, 2011 at 6:22 PM , Anonymous Anonymous said...

I believe gold will trade sideways for a time and consolidate it's gains. Silver may still have some upside but basically has seen the majority of it's gains. I don't think gold will ever trade below $1,000 again, nor will silver ever trade below $25 again.

At March 12, 2011 at 9:37 PM , Anonymous Anonymous said...

Nice looking coin, wish I could afford one!

At March 12, 2011 at 9:49 PM , Anonymous Anonymous said...

What happens during the next 90 days, I am not so sure about.

However, I strongly believe that 90 days from now that all asset classes are going down big time when QE2 ends.

Stocks? They've gone up in a straight line since the week QE2 started. Check the charts.

Gold, Silver? The only demand for them the last few years has been investment demand - the surest sign of a coming price crash no matter what, but silver especially has become extremely inflated since QE2 started. Check the charts.

Overall, I'm optimistic about the economy - but now is a great time to start selling and/or shorting before May/June when they will crash.

At March 12, 2011 at 10:36 PM , Anonymous Anonymous said...

The 2008 proof 1/2 ounce proof is still a very undervalued and overlooked coin, its the rarest of all the proof buffalos and probably will be for some time.
I think Silver could easily go to $45-47 an ounce. Which will probably happen before the end of summer or sooner.

At March 13, 2011 at 4:09 AM , Anonymous Anonymous said...

What is being discussed here is reminiscent of the signs of a bubble. Prices keep inflating to the point where the item (housing, precious metals, stocks, etc.) becomes less and less affordable. That leads to decreased demand and values fall. Those who have hoarded sell their goods by dumping them on the market then the bubble bursts.

How long will prices keep going up? Hard to say. But prices cannot keep inflating indefinitely. There will be a breaking point. And when that point is reached, I hope everyone will be prepared.

As a previous poster said, I wish everyone good luck to those shelling out over $1500 an ounce for bullion and buying slabbed numismatic gold as investments.

At March 13, 2011 at 8:23 AM , Anonymous Anonymous said...

I'd have to agree with the conservative comments herein on the PM bubble. I went in to the grocery store to make a purchase on which they increased the price up by a dollar - I walked. This economy is certainly not out of its previous dip, and while they crow a lot about the < 1% downward trend in unemployment - there are still 8%+ "registered" unemployed. We can individually talk up the market for coins and precious metals to our particular liking, and get our hopes up but the market is exactly that - it may / will not move as we would wish. I have made my coin purchases directly from the mint and will keep them in OGP. There is way too much hype in everything else in the "hobby" for my comfort.

At March 13, 2011 at 3:38 PM , Anonymous Anonymous said...

Wow. Someone wants stock over gold. I'll short that trade any day. Gold isn't going up. Like most people here know. The dollar is going down, therefore, the dollar value of gold goes up. With that said. I would wait for the proof version of the Buffalo.

At March 13, 2011 at 4:12 PM , Anonymous Anonymous said...

Looking at chart you can see how silver has gone up, but not the reasons why. Stockpiles are depleted, industry uses it up and keeps needing more, short sellers have gotten caught by the feds. Charts tell you where it's been, not where it's going or why.

At March 13, 2011 at 5:53 PM , Anonymous Anonymous said...

Have to send my first coin ever back to the Mint (first spouse gold coin). It sucks because its costly and the Mint won't pick up the fees I have to pay to ship it back. They ship defective product and I pay for it!

At March 13, 2011 at 6:19 PM , Anonymous Anonymous said...

It is good to see some PM bears here, with some intelligent comments, rather than just bluster. Now *might* be a good time for numismatic gold purchases, because "gold fever" is discouraging them from paying the hefty premiums for the Army or MOH gold coins. Same is possible for the 2011 Buffalo proof. If the price of gold tanks, low mintage coins like these have less downside risk, BUT are much more expensive in the near term.

If you look at silver consumption, it is increasingly being diverted from industry (electrical contacts and batteries) to coins, medals, and jewelry. That is investment demand, as someone else said, not long term sustainable demand. I also read somewhere that 25% of consumable silver comes from silver scrap. That number puts a practical cap on the price of silver, but a cap that certainly hasn't been reached. Bottom line, silver is overpriced. A great time to sell 1986 Liberty Silver Dollars, and 1987 Constitution Silver dollars. I bet you can get those under spot as I write!

At March 13, 2011 at 6:57 PM , Anonymous VABEACHBUM said...

To 5:53 PM on March 13th - The Mint will reimburse you for return shipping costs: postage, tracking, and insurance up to $25. I have returned 5 items in the last 4 years and have been reimbursed every time. Call the Customer Service 800 number for details. If they throw you a line of BS, comment here and I'll get you the detailed info off-line.

For those following PM prices and wondering about the trends, I highly recommend following commentaries from Pat Heller, Harry Miller and others. Great insights on the PM markets and their impacts to all types of collectible coins. Pay close attention to the imbalances between physical silver, "paper" silver, silver contracts.

For example, the Mint has quietly begun their allocation of 2011 Silver Eagles to the APs - again. Supply and demand are increasing premiums, and could jeapordize the 2011 PR and UNC ASE issues.

At March 14, 2011 at 12:38 AM , Anonymous Anonymous said...

Anonymous @ March 13, 6:19 PM.

Show us data that silver is being diverted from industry to coins, medals, and jewelry.

It's always speculators who like to trump up stories. I've been around for decades and have heard similar stories for years.... LOL!

At March 14, 2011 at 5:55 AM , Anonymous Anonymous said...

So wait, your telling me that ASE mintages are skyrocketing (some months now the USM makes more Eagles than it did in an entire year in the 1990s), and the recession lingers, with consumer spending down (and hence less industrial demand), but you need a citation for the idea that silver consumption is shifting to the collector market? Google, and you shall find.

At March 14, 2011 at 9:50 AM , Anonymous Anonymous said...

I do think that Silver is a bubble ready to burst. Yes, silver has gone up, but silver is also propped up right now for no good reason other than the recent economic downturn, and the ‘cash poor’ investors looking at silver for quick profit potential verses the more expensive gold.

Yes silver has gone up, but not because of supply and demand. Stockpiles are full. There is no shortage of silver. There is plenty of silver being recycled to meet demand, and the more gold that is mined; the more silver (a byproduct of mining gold) is mined as well.

However, a majority of silver mined is and was used by industry. The film industry is just about gone, thus freeing up a huge consumer of silver. And, as the price of silver continues to rise, the industries that use silver for manufacturing have begun looking for and using cheaper alternative metals and compounds. Thus again reducing the demand for silver. Industry is driven by the bottom line and will seek alternate resources every time.

Eventually the floor on silver starts to drop as demand lessens, and all those ‘speculators’ start dumping, and the price drops even quicker – maybe not $10-15 silver, but it is realistic to think we will see an appetite for silver at a floor of between $23-$25. IMHO I doubt it will remain at the current levels going into the summer.

I for one am holding any silver I have as a long position, but I am certainly not adding any more at this time.

At March 14, 2011 at 4:56 PM , Anonymous Anonymous said...

In response to a previous comment as Mike has shown in a previous listing the mint has been making way more silver bullion coins in the last few years, than they have for a long time, and I thought I had heard that silver may just be rarer than gold, since much was used up in industry over the years and all the gold mined since the beginning of civilization is still around? Some say it will go back to its long historic 1:16 ratio in comparitive value?

At March 16, 2011 at 2:32 AM , Anonymous Anonymous said...

Gold and silver are going up primarily because of a decline in the faith of fiat currency, particularly the dollar. The trend will reverse when the Federal Reserve Bank stops flooding the market with liquidity and the Federal Government curtails its deficit spending. In other words, I am not expecting a pullback anytime soon.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home