2011 Proof Gold Buffalo Sales at 5,782

The initial sales figures are now available for the 2011 Proof American Gold Buffalo. Through May 22, 2011, sales of the one ounce 24 karat gold coins have reached 5,782.

This amount represents less than half the debut sales that were achieved for the 2010 Proof Gold Buffalo and less than a third of the debut sales for the 2009 Proof Gold Buffalo.

The latest figures for the Yellowstone Five Ounce Silver Uncirculated Coins are also available. Through May 22, sales had reached 24,626. This leaves only 2,374 coins remaining from the 27,000 mintage. The full weekly numismatic sales report can be viewed at Coin Update.

Essentially all of the US Mint's numismatic gold products have been experiencing much slower sales as compared to previous years. In other Mint News Blog posts or the weekly sales reports on CoinUpdate.com, I have discussed the slower sales for the gold commemorative coins, 2011 Proof Gold Eagles, and Eliza Johnson First Spouse Gold Coins.

Some collectors may be resisting the escalating pricing points, driven by the increased market price of gold. Others may have shifted attention and collecting dollars towards the America the Beautiful 5 Ounce Silver Coins. To some extent this may also be a reversion to the mean following the odd situation of the past few years, which included: 1.) low sales for 2008 precious metals products leading to high secondary market prices; 2.) cancellations or lengthy delays for 2009 products; and 3.) enthusiasm and pent up demand driving heavy sales for 2010 products.

I put together a summary of the 2009-2011 Proof Gold Buffalo data, including the sales start date, initial pricing, debut sales, sales end date, last price, and final mintage (or sales).

2009 Proof Gold Buffalo

Sales Start Date	October 29, 2009
Initial Price	$ 1,360.00
Debut Sales	19,468
Sales End Date	March 29, 2010
Last Price	$ 1,410.00
Final Mintage	49,306

2010 Proof Gold Buffalo

Sales Start Date	June 3, 2010
Initial Price	$ 1,510.00
Debut Sales	12,778
Sales End Date	May 10, 2011
Last Price	$ 1,810.00
Final Sales	49,374

2011 Proof Gold Buffalo

Sales Start Date	May 19, 2011
Initial Price	$ 1,760.00
Debut Sales	5,782
Sales End Date	?
Last Price	?
Final Sales	?

Numismatic Gold Coin Price Increase Possible

Based on recent gold prices, it seems that a price increase for numismatic gold coins may occur tomorrow. This would reverse the pricing decrease which took place on Wednesday of last week, bringing prices back to their highest levels.

The average London Fix Price of gold since last Thursday AM is already well into the $1,500 to $1,549.99 price range. At this point, the most likely factor that may prevent a price increase is the Wednesday PM London fix price. If this price is below $1,500, no price changes would take place. Under a secondary aspect of the US Mint's pricing policy, the Wednesday PM price must agree directionally with any change based on the average price calculated based on the prior Thursday AM to the current Wednesday AM.

Recently gold was trading at $1,524.60. In the past, the US Mint has implemented price increases at any point between mid-morning to slightly after 12:00 Noon ET.

2011 Proof American Gold Buffalo Coins

The 2011 Proof Gold Buffalo Coins will go on sale at the US Mint today, May 19, 2011 at 12:00 Noon ET. This release comes less than two weeks after the sell out of the 2010-dated version, making for only a small gap in availability for the popular 24 karat gold proof coins.

After a few years or cancellations, delays, and general uncertainty, the US Mint has managed to catch up with their numismatic gold offerings and get things on a normalized schedule. By contrast, the 2009 Proof Gold Buffalo had not been released until October 29. The 2010 coin showed improvement with a release date of June 3.
The American Gold Buffalo features James Earle Fraser's design for the 1913 Type I Buffalo Nickel. The profile of a Native American believed to be based on three real life chiefs appears on the obverse. The reverse features an American Bison or Buffalo on a raised mound. This is believed to have been modeled after Black Diamond of the New York Zoological Gardens.

The classic design was resurrected for use on the 24 karat gold bullion program introduced in 2006. For each year, the US Mint has also made available collectible proof version of the coin. For 2008, the offerings were expanded to include uncirculated coins and fractional coins, but the extra versions were ultimately discontinued.

It's interesting to note that Public Law 109-145, which authorized the American Gold Buffalo specifies that Fraser's obverse and reverse designs for the Buffalo Nickel must be used only for the initial year of release. After the initial one year period, the Secretary of the Treasury has the option of changing the obverse or reverse design. So far this option has not been utilized.

The 2011 Proof Gold Buffalo Coins each contain one troy ounce of .9999 fine (24 karat) gold. The coins are presented in a hardwood box with matte finish and faux leather insert. There has been no maximum mintage level established and there are no household ordering limits in effect.

Each coin is priced at $1,760.00 for the start of sales. These coins are covered under the US Mint's flexible pricing policy for certain gold and platinum numismatic coins. As such, the price may be adjusted as frequently as weekly in response to changes in precious metals prices.

2010 Proof Gold Buffalo Sold Out

The 2010 Proof Gold Buffalo coins have now sold out at the US Mint. The sell out comes just a few days before the 2011-dated version is scheduled to go on sale.

Sales of the one ounce proof coin began on June 3, 2010. At the time, the coins were priced at $1,510 each, based on an average gold price in the $1,200 to $1,249.99 range. There were no ordering limits or stated maximum mintage for the coins.

After opening with sales of 12,778, the 2010 Proof Gold Buffalo remained a relatively steady seller during the ensuing months. The last reported sales through May 1, 2011 were 49,236. When last available, the coins were priced at $1,810 each, reflecting an average gold price in the $1,500 to $1,549.99 range.

It seems that the final mintage will land not too far from the level for the 2009 Proof Gold Buffalo. The US Mint has now released the final audited mintage for this issue as 49,306. The final mintages for all Proof Gold Buffalo coins are shown below.

Proof Gold Buffalo Final Mintages
	1 oz	1/2 oz	1/4 oz	1/10 oz
2006	246,267
2007	58,998
2008	18,863	12,169	13,125	18,884
2009	49,306

The 2011 Proof Gold Buffalo is scheduled to go on sale May 19, 2011.

2010-P Yellowstone National Park Five Ounce Silver Uncirculated Coin

Yesterday, the US Mint announced the release date for the next numismatic America the Beautiful 5 Ounce Silver Coin. The coin featuring Yellowstone National Park will go on sale May 17, 2011 at 12:00 Noon ET.

Matching the terms of the previous release, the coins will be priced at $279.95, with a mintage of 27,000, and ordering limit or one per household.

Meanwhile, the Hot Springs Five Ounce Uncirculated Coins still remain available for sale on the US Mint's website. Despite strong opening sales, the anticipated quick sell out did not occur, likely impacted by the dramatic fall in silver prices that coincided with the release.

I am currently awaiting information for the latest US Mint sales report that should indicate exactly how many coins remain available for sale.

Update: The latest US Mint sales report indicates sales of 49,411 for the 2010 Proof Gold Buffalo and 26,866 for the 2010-P Hot Springs Five Ounce Uncirculated Silver Coin.

View the Full report on Coin Update.

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.

2010 American Gold Buffalo Bullion Coins Sold Out

Just when things seem to be improving with the US Mint's bullion situation, it always seems that another sell out, suspension, or depletion takes place. According to a statement released to authorized purchasers today, the 2010 Gold Buffalo bullion coins have sold out. Additional inventory of 2010-dated coins will not be made available.

The latest figures indicate that 209,000 of the one ounce coins have been sold since the start of sales on April 29, 2010. This number may not reflect the final total, but it is the number currently provided on the Mint's website.

The US Mint had managed to bring their bullion offerings closer to a state of normalcy this year, which led to progress with collector offerings. The Gold Buffalo and fractional Gold Eagles had been released earlier in the year, and rationing was lifted first for Gold Eagles, then for Silver Eagles. Until now, the only bullion product still disrupted was the Platinum Eagle, which has not been offered in bullion format since late 2008.

With the 2010 Gold Buffalo sold out, the US Mint is now missing two products from their bullion line up. Collectors are also still awaiting the release of the 2010 America the Beautiful Silver Bullion Coins.

The sell out of the bullion version of the Gold Buffalo does seem to make the availability of the 2010 Proof Gold Buffalo more uncertain. However, there's no telling how many of the proof coins the US Mint has left and how long they might last. In 2009, the US Mint sold out of the bullion version of the Gold Buffalo on December 4, 2009, but it took until March 29, 2010 for the proof version to sell out. Last reported sales for the 2009 Proof Gold Buffalo were 49,388.

In recent weeks, the pace of sales for the 2010 Prof Gold Buffalo has showed a marked increase. Over the past four weeks, sales of 5,426 coins were recorded. As of September 19, total sales had reached 31,896.

2010 Gold Buffalo Proof Coin Sales at 12,778

Numismatic News is reporting that the 2010 Proof Gold Buffalo sold 12,778 coins through June 8, 2010. The coins originally went on sale June 3, 2010, priced at $1,510 each.

The coins are on a slower pace than last year's 2009 Proof Gold Buffalo offering, which sold 19,468 coins in the first three days of sales from October 29 to November 1, 2009. The offering eventually sold a total of 49,388 coins through the end of sales on March 29, 2010.

A slower start was expected for this year's offering for a number of reasons. First, the coins are priced $150 higher than the initial price of last year's offering. This may have caused some collectors to scale back or attempt to wait for a lower price.

Second, the 2009 Proof Gold Buffalo coins haven't matched the stellar performance of the 2008-W Gold Buffalo coins. Oftentimes, strong secondary market performance for a US Mint product will lead to more robust sales of the following issue from collectors hoping for a repeat.

Third, there was not the sense of urgency and pent up that was present last year. Sales of the 2009 Proof Gold Buffalo began following nearly a year of unavailability for collector versions of the coin and uncertainty about whether the coins would be offered at all. The total number of coins available was also unknown, which may have accelerated the early pace of sales. This year, the coins are offered after just a few months of unavailability for collectible Gold Buffaloes and collectors may be more confident that the offering will be available for some time. Of course, this might not actually be the case if "unprecedented demand" for gold bullion rears it's head.

It seems likely that the 2010 Proof Gold Buffalo will end up with a mintage below last year's level, but how much lower will be the question. The table below shows the final mintages for each of the Proof Gold Buffalo coins.

Proof Gold Buffalo Mintages

	1 oz	1/2 oz	1/4 oz	1/10 oz
2006	246,267
2007	58,998
2008	18,863	12,169	13,125	18,884
2009	49,388*

*Last reported sales

New Coingrader Capsule: In Praise of PCGS

2010 American Gold Buffalo Proof Coins

On June 3, 2010, the US Mint will begin sales of the 2010 American Gold Buffalo Proof Coin.

The American Gold Buffalo takes its design from the iconic 1913 Type I Buffalo Nickel by James Earle Fraser. The obverse depicts the profile of a Native American based on a composite of three chiefs and the reverse depicts an American Bison or Buffalo. Each coin contains one ounce of 24 karat gold. Produced at the West Point Mint, the coins carry the "W" mint mark.

Based on recent gold prices, it seems that the offering will be priced at $1,510 each. The US Mint has indicated that there are no ordering limits or maximum mintage for the offering.

This year's release of a collectible version of the 24 karat gold coin will take place much earlier than the prior year. The 2009 Proof Gold Buffalo coins went on sale October 29, 2009 after some uncertainty as to whether the coins would be offered at all. The pent up demand following almost a year without collectible Gold Buffaloes and heightened performance expectations following the secondary market success of the 2008-W Gold Buffalo Coins perhaps contributed to heavy initial sales of the coin. After only four days, the US Mint had recorded sales of 19,468. The coins eventually sold out on March 29, 2010 with last reported sales of 49,388.

This year's offering of the 2010 Proof Gold Buffalo seems like it will carry a much different impression. If the price of gold remains within the current range, then the offering price will be $1,510 per coin, which is $150 above last year's initial price level. The coins are being released earlier in the year, which may remove some of the sense of urgency which existed last year. Finally, the 2009 proof coins have not been secondary market successes so far. The coins are selling for around $1,400 based on recently completed eBay auctions, which right around the price of the coins when last available directly from the US Mint. It always seems that secondary market appreciation spurs higher sales levels for the next offering of product in the next offering, and vice versa.

Despite these factors, the Gold Buffalo series does seem to carry a dedicated base of collectors. These coins will also represent the only numismatic gold coin offering besides the First Spouse Gold Coins.

If you are rooting for a low mintage for the 2010 Proof Gold Buffalo, one factor that may come into play to help make this a reality is the current elevated demand for bullion coins. During May 2010, the US Mint sold 70,500 Gold Buffalo bullion coins and recorded the highest monthly sales of one ounce Gold Eagle bullion coins since 1999.

Continuing high demand or escalating demand may cause a scarcity of precious metals blanks that can impact collector offerings. As we have seen in the past, the US Mint will prioritize the production of bullion coins over the production of collector coins, although in the case of the Gold Buffalo, I don't believe this is a legal requirement.

2010 Gold Buffalo Bullion Coins

The United States Mint recently announced that they will begin accepting orders for the 2010 American Gold Buffalo bullion coins from authorized purchasers on April 29, 2010. Last year, the the 2009-dated Gold Buffalo bullion coins were not available until October 15, 2009.

The US Mint's announcement is related to the bullion version of the American Gold Buffalo. These one ounce, 24-karat gold coins are distributed through the US Mint's network of authorized purchasers. They are able to buy bullion coins directly from the US Mint and then resell the coins to other dealers or the public. The US Mint does expect to issue a collectible 2010 Proof Gold Buffalo, but the release date remains unknown. This proof coin will be available for sale directly form the US Mint.

The earlier release of the 2010 Gold Buffalo is a positive sign that the Mint is catching up with demand for gold bullion coins. As many collectors are now aware, before the United States Mint can produce and issue collectible versions of the American Gold and Silver Eagle, they must meet the full public demand for the bullion versions of the coins. Last year the collectible 2009 Gold and Silver Eagles were canceled since the US Mint could not meet full demand.

Another sign that the US Mint is fulfilling demand for gold bullion coins came last month. The Mint ended the allocation program which had previously limited the number of gold bullion coins that authorized purchasers could order. The rationing program had been reinstated in December 2009, following a two week sales suspension.

A contributing factor to the US Mint's apparent progress in meeting full demand for gold bullion coins may simply be a reduction in demand. Through the end of the first quarter, the US Mint's gold bullion sales are down 20.8% compared to the same period last year. After the numbers are finalized for this month, the percentage decline will be even greater.

Whatever the case may be, the prospects for the issuance of the 2010-W Uncirculated Gold Eagle and 2010-W Proof Gold Eagle have certainly improved.

On the other hand, the situation for collectible 2010 Silver Eagles remains somewhat bleak. Through the first quarter, sales levels for the US Mint's silver bullion coins are above the record levels of last year. Silver Eagle bullion coin sales also remain subject to rationing at the authorized purchaser level. The United States Mint Director Edmund Moy also made statements at the ANA National Money Show in Fort Worth, Texas, casting doubts on the prospects of collectible 2010 Silver Eagles.

Some readers have pointed out that the US Mint's online product catalog currently has subscription pages available for the 2010-W Uncirculated Silver Eagle and 2010-W Proof Silver Eagle. However, the subscription options aren't an indication that the coins will be issued. Similar subscription pages were available for last year's releases right up until the cancellation announcement.

Today on Coin Update News:
Collector Creates America the Beautiful Quarter First Day Covers

2009 Proof Gold Buffalo Sold Out

Yesterday, two things occurred that I would like to report. First, the 2009 Proof Gold Buffalo Coin sold out at the US Mint. Second, my wife and I welcomed our second child!

First the coin related news...

The 2009 Gold Buffalo One Ounce Proof Coin went on sale October 29, 2009, priced at $1,360 each. Later pricing adjustments would bring the offering price as high as $1,460 with the last available price $1,410.

In the first three days of availability, the US Mint reported sales of 19,468 coins. By mid-November, sales had reached 32,271. The pace of sales slowed into the new year, with recent sales around 500 coins per week.

The last reported sales figures for the 2009 Proof Gold Buffalo coin were 49,388. In the past, I had suggested that the US Mint may have produced an even 50,000 coins by the end of 2009 and sales would continue until this entire production run was sold out. It looks like this prediction was close to the mark.

There had been indication of a sell out earlier last week when some readers reported that the US Mint's product page had changed to sold out status. However, the "sold out" was removed, the coins went back on sale and remained available for several more days.

The mintages for the one ounce Proof American Gold Buffalo Coins now stack up as follows:

One Ounce Proof Gold Buffalo Coin Mintages
2006	246,267
2007	58,998
2008	18,863
2009 (last reported sales)	49,388

The US Mint has also now indicated that a 2010 Proof Gold Buffalo one ounce coin will be offered in the future. The release date is not yet known. The pricing would likely follow the US Mint's existing pricing grid for numismatic products.

In personal news, yesterday morning my wife gave birth to our second son, Robert Alexander Zielinski. Even though he was born a few weeks earlier than expected, he weighed in at 8 pounds and 7 ounces. Both Mom and Baby are doing well. Big brother Jason (just turned 2 years old) was very intrigued and kept asking to "see baby."

Deconstructing 2008-W Gold Buffalo Coins

The 2008-W Proof and Uncircualted Gold Buffalo Coins have been one of the most successful US Mint products in years, when considering the secondary market price appreciation. The coins have been a frequent topic of comments and I have been meaning to write about them for some time. I decided that I would come up with a deconstruction of some of the factors leading to the phenomenal success of the coins.

Before examining these factors, I wanted to start with a review of some of the sales prices for 2008-W Gold Buffalo coins from recently completed eBay auctions. A 4 coin proof set graded PR70DCAM First Strike recently sold for an incredible $16,999.00. Some 4 coin proof sets graded NGC PF 70 Ultra Cameo have sold for around $8,000 - $9,000, and some of the 4 coin uncirculated sets grading NGC MS 70 have sold for $6,000 - $7,000 per set. These sales prices compare to original US Mint prices of $1,959.95 for the uncirculated set and $2,219.95 for the proof set.

Individual coins and raw coins have also sold for dizzying amounts. A 2008-W $5 Gold Buffalo graded PCGS MS70 just closed at $875.00 and a raw 2008-W Proof $10 Gold Buffalo sold for $1,500. Here are all of the current eBay auctions for 2008-W Gold Buffalo Coins.

Personally, I have been somewhat in awe of the prices for these coins and have no idea whether prices have peaked or whether they have more room to grow. As mentioned, what I wanted to do with this post is examine some of the factors which contributed to the enormous success of the coins.

First, the design for the American Gold Buffalo is based on James Earle Fraser's extremely popular Buffalo Nickel design. Coins which feature classic designs tend to create higher demand, as it expands the number of collectors interested in the coins. When the US Mint first introduced the Gold Buffalo in 2006, the one ounce proof version sold 246,267 coins, demonstrating the potentially large collector base.

Second, seven out of the eight 2008-W Gold Buffalo coins currently represent one-time only issues. In January 2008, the US Mint announced that they would offer collectible proof and uncirculated Gold Buffalo coins in one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes. For the prior two years, the US Mint had offered only the one ounce version for collectors. In November 2008, the US Mint abruptly announced the discontinuation of all of the newly introduced Gold Buffalo options. This made all four of the 2008-W Uncirculated Gold Buffalo Coins and the 2008-W Proof Gold Buffalo one-half ounce, one-quarter ounce, and one-tenth ounce coins one year only issues.

Third, the pricing and economic conditions surrounding the US Mint's offering period for the coins resulted in extremely low sales, which translated to unusually low mintages. The US Mint released the 2008-W Proof and Uncirculated Gold Buffalo Coins on July 22, 2008. This was the exact day when gold reached a temporary peak of $961.50 per ounce. Gold subsequently entered a period of extended decline that would bring the price as low as $712 per ounce. The US Mint did not adjust coin prices until November, resulting in high premiums above gold value for nearly the entire offering period. These high premiums likely turned off some potential buyers. The state of the economy may have also held some potential buyers at bay, as the second half of 2008 was a period of extreme economic and financial uncertainty.

Fourth, the coins sold out before the close of the year. In rapid succession, the US Mint announced the discontinuation of most of the collectible Gold Buffalo products and then adjusted prices based on the lower value of gold. At that point, sales assumed a rapid pace which did not diminish until all options were sold out in early December 2008. In general, products which are deemed to sell out early, tend command instant premiums which sometimes expand over time. By contrast, products which linger in the US Mint's product catalog or go off sale at a pre-announced cut off date, tend to appreciate slower or not at all. (There are some exceptions to this, but it has seemed to play out this way in recent years.)

Fifth and final, collector money has to go somewhere. The United States Mint canceled many of their most popular collectible precious metals products last year and offered relatively little to fill the void. I think that at least a portion of the money that would have been spent on 2009 Proof and Uncirculated Gold and Silver Eagles is chasing prior year precious metals products, such as the 2008-W Gold Buffalo coins.

I think that the incredible price appreciation of these coins is the result of perfect storm of circumstances that likely will not be repeated for some time. We can certainly watch for some of these factors in future offerings and try to catch the next blockbuster early.

Slowing Sales for 2009 Proof Gold Buffalo

The pace of sales for the 2009 Proof Gold Buffalo has showed a constant, steep decline since sales began on October 29, 2009. The latest sales report shows 4,316 coins sold in the latest weekly sales period.

The total number of coins sold to date is now 32,271. This is comprised of 19,468 coins sold during the opening three days, then 8,487 coins sold during the following week, and 4,316 coins sold in the most recent week ending November 15.

It is common for the pace of sales for newly released US Mint products to decline significantly following their initial release. The Ultra High Relief Double Eagle showed an even steeper rate of decline following its release. After selling more than 40,000 coins in the opening 3 days, less than 5,000 coins were sold in the following two weeks. By the sixth week, less than 1,000 coins were sold in a week.

The 2009 Proof Gold Buffalo has been holding up better by comparison. Sales have been supported by the lack of household ordering limits and the general popularity of the Gold Buffalo series. Factors holding down the rate of sales include anticipated higher mintage and the relatively high price of the coin, which was just raised this week to $1,410.

In the long run, some collectors are hoping for a low mintage for the 2009 Proof Gold Buffalo to support future premiums. It does seems likely that the 2009 mintage will fall below the level of the 2007 Proof Gold Buffalo which had 58,998 coins minted. It has already surpassed the low set by the one ounce 2008 Proof Gold Buffalo which was recently adjusted to 25,496 (unconfirmed).

Go to Coin Update News for a complete US Mint sales report for November 15, 2009.

2009 Proof Gold Buffalo Sales at 19,468

The first sales figures are available for the 2009 Proof Gold Buffalo. This coin went on sale at the United States Mint on October 29, 2009 priced at $1,360 with no household ordering limit or stated maximum mintage.

As of November 1, 2009, the US Mint recorded sales of 19,468 of the one ounce 2009 Proof Gold Buffalo coins. This positions the coin only 123 away from the total sales amount for the one ounce 2008 Proof Gold Buffalo. The table below shows the mintages (or last reported sales figures) for Proof Gold Buffalo coins from 2006 to date.

Proof Gold Buffalo Mintages

	1 oz	1/2 oz	1/4 oz	1/10 oz
2006	246,267
2007	58,998
2008	19,591	12,569	13,903	19,294
2009	19,468

The relatively strong opening sales came amidst a "wait and see" attitude from some collectors. If the price of gold had remained below the $1,050 level for most of the week, this would have prompted a price reduction. The coins are currently priced at $1,360 based on an average weekly gold price within the $1,050 to $1,099.99 range. Prices for the US Mint's gold numismatic products can be adjusted once a week if the average price of gold moves into different price tiers set at $50 increments.

Gold's recent performance suggests that a price reduction will not happen this week. By my calculation, unless tomorrow's London AM Fix is below $1,058, the price of the 2009 Proof Gold Buffalo will remain unchanged. The current price of gold is $1,079 per ounce.

2009 American Buffalo Gold Proof Coin

Today October 29, 2009 at 12:00 Noon ET, the 2009 American Gold Buffalo Proof Coins will go on sale at the United States Mint.
Only one ounce proof coins will be offered, which is a sharp reduction from the number of collectible Gold Buffalo options offered last year. Even this single offering had been in doubt until the US Mint's announcement earlier this month.

Each coin is minted in .9999 fine, 24-karat gold, packaged in a hardwood box with a matte finish and faux leather insert. The coins are priced at $1,360 each. There is no ordering limit or maximum mintage set for the product. These details (except for the price) were revealed last week.

There are a few dueling factors that will play into the initial sales levels for the coins. The pent up demand for this popular coin suggest strong opening sales. This is supported by the continuing brisk pace of sales for the bullion version of the coin that just went on sale October 15, 2009. In the past two weeks, the US Mint has already sold 110,500 coins. Additionally, since there are no ordering limits in place for the 2009 Proof Gold Buffalo, collectors and dealers will have the opportunity to order in quantity.

On the other hand, there are a few factors which may serve to diminish early demand for the coins. The current price of the coins may serve as a deterrent. The US Mint sets prices for numismatic gold products based on the average of the preceding week's London Fix gold prices. For the relevant period, the average is $1,050.28. Even though the current price of gold is $1,035 per ounce, the coins are priced based on the US Mint's $1,050 to $1,099.99 pricing tier. If the average price of gold had been 29 cents lower, the coins would have been priced $50 cheaper. Some collectors may delay purchases to see if the average price of gold allows cheaper purchases in the coming weeks.

A second factor which may diminish the pace of early and overall sales for the coin is the lack of a maximum mintage. As discussed previously, the fact that the US Mint is not placing household limits or a maximum mintage, suggest that they are prepared to supply the coins in whatever quantity the market will bear. The resulting high mintage from this scenario diminishes the longer term prospects for the coins, especially compared to the stand out performance of last year's collectible Gold Buffalo offerings.

Today on Coin Update News:
US Mint Sales Report for 10/25/2009

2009 Gold Buffalo Proof Coins

The US Mint has released information on the upcoming 2009 Proof Gold Buffalo coins. The coins will be available starting on October 29, 2009 at 12:00 Noon ET.

As known previously, only a single one ounce proof version of the coin will be offered. Last year, the US Mint had offered fractional versions of the coin (1/2 oz, 1/4 oz, 1/10 oz) and a full line of collectible uncirculated coins (1 oz, 1/2 oz, 1/4 oz, 1/10 oz). These products had been announced as discontinued in late 2008.

The one ounce 2009 Proof Gold Buffalo coins are struck in 24 karat gold. The obverse and reverse designs are based on the original 1913 Type I Buffalo Nickel by James Earle Fraser. The coins are minted at the West Point Mint and carry the "W" mint mark.

The price of the coin will be based on the tables available for the United States Mint's numismatic gold products. If the average weekly price of gold remains within the current range of $1,050 to $1,099.99, then the coins will be priced at $1,360.00 each.

The biggest revelation about the offering is that there will be no household ordering limits and no maximum mintage.

Yesterday when examining the bullion coin offering, I had stated that this would be key to the longer term prospects of the 2009 Proof Gold Buffalo. With unrestricted ordering and mintage, presumably for the next two months, the final mintage should easily exceed the low levels of 2008.

Undoubtedly this will be a popular offering, and the coin will be cherished by many collectors, but I don't think there will be a repeat of the incredible price appreciation experienced for last year's coins. The one ounce 2008 Proof Gold Buffalo currently sell for $2,600 or more on the secondary market.

2009 Gold Buffalo Bullion Coins

Although the proof version of the coin won't be released until October 29, the bullion version of the 2009 Gold Buffalo coin has been available since October 15.

Because this is a bullion coin, it is not offered for sale directly by the United States Mint. Rather the coins are distributed through the US Mint's network of authorized purchasers. The AP's purchase the coins directly and then resell to other dealers and the public.

The most recent information available from the US Mint indicates that 79,500 of the 2009 Gold Buffalo bullion coins have already been sold. Monthly sales have not been at this level since the heavy demand experienced when the coins debuted in 2006. For all of 2008 (amidst a few suspensions), the US Mint had sold 172,000 coins.

The numbers show that there is a very high level of pent up demand for Gold Buffalo coins. Until recently, the coins had been unavailable for nearly a year. The fact that they are finally being offered near the end of the year also seems to have created the impression that they will only be available in limited numbers. If another strong week of sales follows, the mintage of the 2009 Gold Buffalo might end up exceeding some of the prior year mintages.

The strong sales also suggest that the US Mint might not be having the same sourcing problems for 24 karat gold blanks, or they have at least acquired a significant supply. I have not heard any indication that the 2009 Gold Buffalo bullion coins are subject to rationing, so apparently the US Mint is comfortable that they can meet unrestricted demand from the public.

I think that the incredibly strong bullion sales figures have some implications for the 2009 Proof Gold Buffalo.

When the 2009 Proof Gold Buffalo is released (tentatively) on October 29, 2009, there will definitely be a rush to order. As with the bullion coins, the pent up demand and impression of limited availability will have people ordering early and, if possible, heavily.

The key question is: How many proof coins will the US Mint produce? Unless a stated maximum mintage is provided, I think the number could be significant. Rather than risk another public relations black eye, the US Mint might produce the coins in high quantities to ensure that any collector who to purchase the coin has ample opportunity to do so. This is contingent on the supply of blanks, which as mentioned, might not be an issue for 24 karat gold coins.

If the total number of 2009 Proof Gold Buffalo coins greatly exceeds the mintage for the prior year, secondary market potential would be curtailed. While the coin is undeniably beautiful and will be heavily collected, for now I would be wary of anticipating big gains. I mentioned this possibility in this prior post, and the new information on bullion sales lends it some further support.

Once more information is available from the US Mint on the 2009 Proof Gold Buffalo coins, I will have it posted here, along with any reevaluation of the situation.

2009 Platinum Eagles and 2009 Gold Buffalo Coins

The news yesterday that the US Mint has canceled collectible 2009 Gold and Silver Eagles certainly generated a lot of responses from the collecting public. As I mentioned in yesterday's post, I plan to provide some more details and my own thoughts on the announcements in the coming days.

Today, I wanted to write about the known details for the 2009 Platinum Eagle and 2009 Gold Buffalo coins which will be offered this year. Tomorrow I will follow with more details on the canceled Gold and Silver Eagles. By Friday, I will present some overall thoughts and reactions to the situation and how it has affected collectors. For now I will stick mostly to the facts.

2009 Proof Platinum Eagle

Last year, the US Mint offered a total of fourteen different platinum coin products. This included collectible proof 1 oz, 1/2 oz, 1/4 oz, 1/10 oz coins, and 4 Coin Sets; collectible uncirculated 1 oz, 1/2 oz, 1/4 oz, 1/10 oz coins and 4 coin sets; and a full range of bullion 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz coins.

This year, there will be only one platinum coin offered: the one ounce 2009 Proof Platinum Eagle. This coin will be offered for sale directly by the United States Mint with a tentative release date of December 3, 2009.

The 2009 Proof Platinum Eagles reverse will feature a new design interpreting the theme "To Form a More Perfect Union." The final design has not yet been announced, but design candidates were reviewed by the CFA and CCAC last year. The CFA recommended a design depicting a small tree with thirteen leaves. The CCAC recommended the design pictured at the top of this post with four faces representing the diversity of America.

Official pricing and ordering information has not yet been announced. Based on the US Mint's published pricing grid for numismatic platinum coins, the one ounce proof coin would cost $1,592 based on an average price of platinum between $1,250 to $1,349.99. It seems likely that the US Mint would place a household ordering limit on these coins (perhaps one per household) due to the demand for the coins and the small window for production.

Last year, the US Mint sold a combined total of 5,030 of the one ounce 2008 Proof Platinum Eagles.

2009 Proof and Bullion Gold Buffalo Coins

Last year, the US Mint offered thirteen different Gold Buffalo coin products. This included collectible proof 1 oz, 1/2 oz, 1/4 oz, 1/10 oz coins, and 4 Coin Sets; collectible uncirculated 1 oz, 1/2 oz, 1/4 oz, 1/10 oz coins, and 4 coin sets; the American Buffalo Celebration Coin; the Double Prosperity Set; and the one ounce bullion coin.

This year, there will be just two coins offered: the one ounce proof coin and the one ounce bullion coin.

The proof coins will be offered for sale directly by the United States Mint with a tentative release date of October 29, 2009. Ordering and pricing details have not yet been announced. Based on the numismatic gold coin pricing grid, the price for each coin would be $1,310 based on an average gold price of $1,000.00 to $1,049.99. As mentioned for the platinum coin, I also think anticipated high demand will cause the US Mint to impose a low household limit.

Last year the US Mint sold a total of 19,591 of the one ounce 2008 Proof Gold Buffalo Coins. This was down from 58,998 proof coins sold in 2007, and approximately 252,000 proof coins sold in 2006.

The 2009 Gold Buffalo bullion coins will not be offered directly by the United States Mint. As with other bullion coins, they will be distributed through the US Mint's network of authorized bullion dealers. These select dealers can purchase the coins directly from the US Mint for the spot price of gold plus a mark up. The coins are then resold to other bullion dealers, coin dealers, or the public.

Last year, the US Mint sold 189,500 of the one ounce 2008 Gold Buffalo Bullion coins.

2009 Proof and Uncirculated Gold and Silver Eagles Canceled

Today at Noon, the United States Mint issued a press release with some shocking and disappointing news. The collectible 2009 Proof and Uncirculated Gold and Silver Eagles will not be offered this year. As partial consolation, the press release also announced plans to offer the 2009 Proof Gold Buffalo, the 2009 Proof Platinum Eagle, and fractional weight Gold Eagle bullion coins.

Additional Coverage on this announcement:
2009 Platinum Eagle and 2009 Gold Buffalo
2009 Gold Eagle and 2009 Silver Eagle
Final Thoughts on US Mint Product Cancellations

As it now stands, the following collector coins are now canceled:

- 2009 Proof Silver Eagle
- 2009-W Uncirculated Silver Eagle
- 2009 Annual Uncirculated Dollar Coin Set
- 2009 Proof $50 Gold Eagle (one ounce)
- 2009 Proof $25 Gold Eagle (one-half ounce)
- 2009 Proof $10 Gold Eagle (one-quarter ounce)
- 2009 Proof $5 Gold Eagle (one-tenth ounce)
- 2009 Proof Gold Eagle 4 Coin Set

This is in addition to many other collector gold and platinum coins that had previously been announced as discontinued.

On the bullion front, the US Mint has canceled all 2009 American Platinum Eagle bullion coins. These coins are typically available in one ounce, one-half ounce, one-quarter ounce, and one-tenth ounce sizes.

The following collector coins will be offered:

- 2009 Proof $50 Gold Buffalo (release date October 29)
- 2009 Proof $100 Platinum Eagle (release date December 3)

The reason cited for the canceled products is a familiar one: "the unprecedented demand for American Eagle Gold and Silver Bullion Coins." This reason has been cited on numerous occasions over the past two years to explain bullion coin rationing, bullion and collector coin suspensions, and bullion and collector coin cancellations.

Under law, the United States Mint is required to produce Gold and Silver Eagle bullion coins in quantities sufficient to meet public demand. Accordingly, the US Mint has been using all 22-karat gold and silver blanks to produce bullion coins, in lieu of collector coins, which they are not legally required to produce.

The status of this year's collectible Gold Eagles, Platinum Eagles, Silver Eagles, and Gold Buffaloes has been a topic of constant discussion and speculation. Way back in January, I had mentioned the possibility that these coins might not be issued in 2009. My reasoning was validated a few months later when the US Mint finally announced that the products were suspended (see posts here and here). In mid-June, there was a brief revival of hope for the collector coins when the US Mint finally ended bullion allocation programs, but apparently this was to no avail.

This is clearly an unhappy resolution to the situation for collectors. I will have further thoughts on this situation in the coming days.

2009 Gold Buffalo Bullion Coins Not Cancelled

Contrary to earlier reports from Coin World, the US Mint will be issuing 2009 American Gold Buffalo bullion coins during 2009.

CoinWorld had published a story in their July 6, 2009 issue stating that the offering was canceled based on information received from the US Mint. This information was not correct and the Mint has already received the 24 karat gold planchets necessary to produce the coins.

The US Mint added this statement to their press releases page:

2009 American Buffalo Gold Bullion Coin Update — Annual production of the United States American Buffalo Gold Bullion Coins is required by law. As a result, the United States Mint is presently developing a production and launch schedule to determine the earliest possible release of these coins through the Authorized Purchaser network.

The US Mint first released the 24 karat American Gold Buffalo coins in 2006. The coins were offered as one ounce gold bullion coins and one ounce proof coins for collectors. The same line up was offered in 2007. In 2008, the number of collector offerings ballooned to included fractional proof and fractional uncirculated coins. These additional offerings were announced discontinued before the end of the year.

Based on current information, the US Mint will offer one ounce 2009 Gold Buffalo bullion coins and one ounce 2009 Gold Buffalo proof coins. Last year, the US Mint sold 189,500 of the one ounce bullion coins and 19,591 of the one ounce proof coins.

Release dates for this year's offerings have still not been provided.

2009 Proof Gold Buffalo Coin Delayed

Update: Latest information on 2009 Proof Gold Buffalo.

The US Mint added a new notification to the product catalog page for the American Buffalo Gold Coins. This joins similar notifications that had previously been posted for the 2009 Gold Eagle and 2009 Silver Eagle product pages.

The notification is as follows:

Production of United States Mint 2009 American Buffalo Gold Proof Coins has been delayed because of the limited availability of 24-karat gold blanks. The 2009 American Buffalo one-ounce Gold Proof Coin is scheduled to go on sale in the second half of the 2009 calendar year after an acceptable inventory of 24-karat gold blanks can be acquired. The release date, once established, will be posted to the 2009 Scheduled Products Listing.

As a result of the numismatic product portfolio analysis conducted last fall, beginning in 2009, American Buffalo Gold Proof fractional coins and the four-coin set are no longer available. Additionally, the United States Mint will no longer offer American Buffalo Gold Uncirculated Coins.

The notification doesn't provide much in the way of new information. The delay had been presumed following the similar announcements for the collectible Gold and Silver Eagle coins. Additionally, the US Mint has not even produced the regular bullion version of the American Gold Buffalo for 2009.

The discontinuation of all but one option for the collectible Gold Buffalo coins had been announced previously, late last year. In 2008, the US Mint had offered a total of twelve products which incorporated the Gold Buffalo. This included 1 oz, 1/2 oz, 1/4 oz, 1/10 oz individual coins in uncirculated or proof, 4 coin sets in uncirculated or proof, the 2008 American Buffalo Celebration Coin, and the 08-08-08 Double Prosperity Set. For 2009, the single coin to be offered will be the 1 oz Proof 2009 Gold Buffalo.

Even though the availability of 24-karat gold blanks is limited, the US Mint has been able to obtain a relatively large number to use for other products. The 2009 Ultra High Relief Double Eagle Gold Coins are struck on special sized and specially prepared 24-karat gold blanks. To date, the US Mint has sold over 62,000 of the coins. The 2009 First Spouse Gold Coins are stuck on one-half ounce size 24-karat gold blanks. The US Mint has sold over 6,000 of the first coin released honoring Anna Harrison.

Double Prosperity Set & Two More Gold Eagles Sold Out

Since my post on the 2008-W Uncirculated & Proof Gold Eagles earlier this week, three additional options containing the coins have sold out.

The three recent sell outs are the 8-8-08 Double Prosperity Set, the 2008-W Uncirculated One Ounce Gold Eagle, and the 2008-W Uncirculated One-Quarter Ounce Gold Eagle. The only Gold Eagle which remains available on the US Mint's website is the 2008-W Uncirculated One-Half Ounce coin.

The Double Prosperity Set contains one-half ounce versions of the 2008-W Uncirculated Gold Buffalo and 2008-W Uncirculated Gold Eagle. The sets were overpriced and overlooked for the first several months of their release, but gained some popularity recently. As I explored in a previous post, the Gold Buffalo coin contained in the set sold out as an individual option and has been selling at a premium. If you account for the value of the Gold Buffalo, the additional Gold Eagle was sometimes available for less than its gold content value.

The last reported sales stats for the Double Prosperity Set show a total of 7,751 sets sold.


One of the contributing factors to the recent sells out is undoubtedly the rising price of gold. As of the writing of this post, the price of gold has surged above $990 per ounce. The US Mint's prices are still set at levels based on a gold price within the $900 to $949.99 range. Under the US Mint's new pricing policy, prices are adjusted each Thursday based on the average of the London Fix prices for the preceding week.

By my calculation, we just missed a price increase this week. Even though the price of gold was above $950, the average price fell just below. This near miss creates an interesting opportunity. The current prices for gold products are actually at the same levels that would be in place if gold was $90 lower. Customers may be using this opportunity to buy collectible gold coins for lower premiums relative to the price of gold.

The next potential US Mint repricing for gold products should take place this coming Thursday, February 26. However, with gold moving up by leaps and bounds each day, I think the US Mint might act sooner. The new pricing policy is silent on what happens if gold makes a significant move between the weekly adjustment periods. However, I would venture that the US Mint would implement an early suspension which would remain in place until the prices can be adjusted for Thursday morning.

We'll see how this develops...