Buffalo coins and PP

[foglifter]

Craigr and MT:

I noticed that American Gold Buffalo hasn't been mentioned in the list of recommended gold coins for US investors in the PP book. Would you mind elaborating on the reasons?

[Ad Orientem]

Craigr and MT:

I noticed that American Gold Buffalo hasn't been mentioned in the list of recommended gold coins for US investors in the PP book. Would you mind elaborating on the reasons?

Craig and MT seem to have missed this post so I will take a quick shot at answering your question. The Buffalo coins are minted by the US Government so the source is reputable and they are small enough that like all 1oz coins they are exceedingly hard to counterfeit. Because they are US Government products you would probably not have much difficulty exchanging them either for local currency or in a pinch directly for goods and services. This might not apply to some more exotic products like Chinese pandas or coins with numismatic value.

[Tortoise]

In case this helps: One factor influencing the global recognizability of the various gold bullion coins might be the year in which their respective governments started minting them. Here are the most well-known gold bullion coins ranked in that regard (I got the years from Wikipedia):

Krugerrand: 1967
Maple Leaf: 1979
Panda: 1980
Eagle: 1986
Nugget/Kangaroo: 1986
Philharmonic: 2002
Buffalo: 2006

Note that the Gold Buffalo is the new kid on the block. It's a gorgeous coin and probably perfectly acceptable for bullion investment purposes (I own one myself). It's just a very new coin, so there probably aren't as many of them out there as, say, Krugerrands.

An even more interesting (and probably more useful) ranking would be in order of how many of each type of coin currently exists out there. I did a quick search to find that information but unfortunately came up empty-handed.

[MediumTex]

I don't think there was any particular reason other than the eagle coin being so much more recognizable and with smaller spreads (most of the time).

I agree that it's a beautiful coin.  I just wouldn't want to pay a premium over eagles if all you are seeking is bullion exposure.  I think that there are a few "standard" gold bullion coins (krugs, eagles, maples, etc.), and for U.S. coins the eagle is kind of that "standard."

If, however, a person wanted to make his whole gold allocation buffalo coins and he was able to get it for the same spread as eagles (or even if it cost a little more and he didn't mind paying it), I would say go for it.

[BearBones]

In the US, I prefer Maples. Usually less of a mark-up (although you indicate in "The Book" that this is lost when selling). And, more importantly, for geographic diversification. If SHTF, would be nice to have option to take gold into Canada. Only 24k bullion sells in Canada without tax, so the Maples fit. Plus, they are gorgeous.

[WildAboutHarry]

Only 24k bullion sells in Canada without tax

Without sales tax, right?  Gains are still taxed.

And if gold tanks the Maples are still worth Canadian $50!