Coin collectors: Difference between American Eagle and American Buffalo?

[Coronita]

I have a question for coin collecting buffs

The US mints products the 1 troy ounce American Eagle coin and 1 troy ounce American Buffalo.

The difference is that the American Buffalo has a 99.99% purity whereas the American Eagle is 91.67% gold, with the rest being alloy.. Both still measures with 1 troy ounce.

My understanding was is the Eagle is more durable versus the Buffalo, and that the Buffalo was meant more to compete with thinks internationally like the CAN maple leaf that is as pure.

But in terms of desirability, is one more desirable versus the other?

Also, does it make a difference whether one buys proof versus uncirculated?

Just curious.

[scaredyclassic]

Both desireable. I’d buy whichever is prettier to you. Premiums change on coins. Buffalo looks cooler to me.

[Coronita]

Why is the US mint selling them for close to $1500/ounce when spot is around $1200. Folks say that one shouldn’t have to pay 5-7% above spot…

http://catalog.usmint.gov/coins/gold-coins/

[Coronita]

never mind. I think this might explain it.

http://demandware.edgesuite.net/aarb_prd/on/demandware.static/Sites-USM-Site/Sites-USM-Library/default/v1431576073089/images/PDFs/PricingGridInstructions2015.pdf

[gzz]

My precious metal investment is low cost etfs, none currently though, and old but not rare American silver coins. Silver is still pretty cheap compared to gold, and I really just like the look and feel of Morgan and Peace dollars and Mercury dimes. A lot of people don’t like the premium for US Mint products, but it isn’t that high really, they are very liquid, and enough of us prefer them to maintain and slowly grow the premium.

There is something a bit cheesy about the coin shaped silver and gold products that are privately minted. If I wanted very low premium silver I’ll get a couple 10oz bars.

The old platinum premium over gold disappeared for a while, then the old ratio snapped back for a nice profit.

I also just can’t see dropping that much money on a little coin when I can get around 55 90% silver dollars weighing several pounds that are 90 to 120 years old.

[SK in CV]

There is virtually no numismatic value to either. They trade at a small discount (transaction cost) to spot price of the metal in the coin.

[Coronita]

[quote=SK in CV]There is virtually no numismatic value to either. They trade at a small discount (transaction cost) to spot price of the metal in the coin.[/quote]

I don’t get why US mint prices are so much higher than dealers that basically sell the same thing.

[SK in CV]

because some people believe there might be numismatic value in this shit 50 years from now. There is some premium in Pandas and other gold coins. They sell so many, there probably won’t be anything more significant 10 years from now than there is today. I have 50 lbs of uncirculated kennedy halfs that my father bought from the mint 50 years ago. They’re worth about $10. On paper. If I want to sell more than a few, I’m probably not going to get that. Current melt is about $6.20. I guess that’s not a horrible yield for a 50 year hold. Maybe it’s not so bad. 20x in 50 years, but they were worth more than melt when they were brand new. And silver isn’t worth twice what it was in ’64. I dunno, maybe I’m wrong.

[gzz]

Unfortunately uncirculated 64 halves aren’t worth very much, because the combination of emotion about JFK and the end of silver coinage caused a lot of people to stock up like your father did.

I avoid silver coins that look like regular coins, so no silver kennedy halves, roosevelt dimes, and washington quarters for me.

Last time I bought silver coins about 6 months ago I got 100 mercury dimes for $150. They’ve started to become popular with prepers as they are the smallest and thus most practical silver coin people will use after Obama declares martial law and hyperinflates the dollar.

Franklin halves barely cost more than melt value and might be the best US coin to start collecting.

The down side is you either have to get them online and worry about insurance and credit card and shipping fees, or else buy them from local dealers in transactions of $1500 or more to avoid California sales tax.

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