American Gold Eagle vs Buffalo Coin

The U.S. Mint presents the 2018 releases of two different types of most popular gold bullion coins - American Gold Eagle and American Gold Buffalo. Both of these timeless series contain one ounce of gold.  In this article, we will discuss what makes these two releases different. And we will answer why the US Mint issues both.

History

In 1500s England, the currency was gold coins. At first, these coins were 23-karat gold. This means that 95.83% of the coin was pure gold. As you know, gold of such a high purity will have a soft consistency to it. 

These high-purity gold coins would wear down quickly as they went from hand to hand on a day-to-day basis. 

So King Henry VIII decided to lower the karats of the coins down to 22. This gave them a 91.67% purity, to make them last longer.

The coin was additionally mixed with copper to give it a more lasting consistency. It came to be known as “crown gold” or “fine gold.”  Since then, many popular gold coins have begun to use this mixture. Some notable examples of this are the American Gold Eagle and the South African Krugerrand.

The Coins

The American Gold Eagle series kicked off in 1986, following the Gold Bullion Coin Act. Conversely, the American Gold Buffalo coins did not begin to mint until 2006.

Public Law 109-145 gave the US Secretary of the Treasury the authority to mint two $50 coins. One was up of 1 troy ounce of “crown gold.” The other was 99.99% pure gold. Under this law, these two coins became the American Gold Eagle and the American Gold Buffalo, respectively.

This does not mean that the difference between the two is that Buffalo contains more gold.

In actuality, the Eagle contains one troy ounce of gold on top of the copper. It was an answer to make 24 karats sturdier against wear and tear. 

Gold Buffalo contains one troy ounce of gold but lacks the copper element. The mint decided to launch its rat bullion available on the market.

So, the differences between the two coins are:

The Eagle is 22-karat gold.  The Buffalo is 24 karats.  The Eagle is for circulation--so it's sturdier. The Buffalo is much softer and requires extreme care when handling.  

The similarity that they share is their composition of 1 troy ounce of gold.

Furthermore, they both appeal with their exquisite and appealing designs.    

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