In this post, I want to talk about factors to consider when choosing between a Gold Eagle vs Gold Buffalo coin. Both are coins produced from The US Mint. When choosing between them there are several factors one should consider:
The First is the Purity. Gold Buffalos have higher purity than gold eagles. Eagles are made in 22-carat gold and have a 91.67% gold alloy and the remaining amounts are silver and copper. Gold Buffalos are 99.99% pure gold, or 24 Karat gold, meaning there’s basically nothing else mixed in. While Gold Eagles have a lower percentage of gold, it should be said that the mixture of other metals helps increase its durability making it less resistant to scratching and wear and tear.
Another factor to consider when choosing between them is the history. Gold Eagles have been around longer, since 1986 while Gold Buffalos are fairly new first being produced by the US Mint in 2006.
One other thing to note between these coins is that gold eagles are produced in larger quantities than Gold buffalos. The first few years Buffalos were produced, the production was much lower than now and they are by no means rare, but this raises the question why someone would buy an Eagle instead of a buffalo?
This is due to the recognition and the history of them. Buffalos haven’t been around as long as Eagles and it should also be said aren’t available in fractional gold coins (Is fractional gold for you?) like the American Eagle.
In terms of price, there doesn’t seem to be much of difference from my experience. Yes, sometimes Eagles are more expensive than Buffalos and vice versa, but I don’t recall seeing significant price differences between the two.
Which do I prefer?
I think both coins are fantastic options (Reasons to Stack gold), but if forced to pick I’m going with the Buffalo. This is because of the purity aspect. Unlike silver American eagles, gold eagles don’t have much higher premiums, but they don’t contain as much gold. I find both the designs to be solid on both coins.
The final question is could buffalos overtake eagles in popularity? Gold buffalos have become extremely popular the last 15 years and there’s good reason to think more people might jump in and buy them. However, until then gold eagles will remain the king 1oz coin in the US and maybe the world.
