Gold Buffalo vs Gold Eagle: A Detailed Comparison

Jump to: Comparison Chart | US Mint | Bullion Act of 1985 | US Gold Eagle | US Gold Buffalo | Ongoing Debate | Why Invest in Gold Coins?

Gold symbolizes wealth and stability. In the US, the American Gold Eagle and Gold Buffalo Coins, produced by the United States Mint, are some of the most popular options among collectors and bullion investors.

This article explores their features, designs, compositions, and values, highlighting their appeal for those seeking to invest in tangible assets and preserve wealth.

KeyTakeaways:

• The American Gold Eagle and American Gold Buffalo are both U.S. Mint–issued bullion coins backed by the U.S. government, offering high liquidity and global recognition;

• American Gold Buffalo: Offers 99.99% pure (24-karat) gold, appealing to investors who prioritize maximum gold content and long-term intrinsic value, even at higher premiums;

• American Gold Eagle: Provides lower premiums, wider availability, and fractional denominations, giving it a clear advantage in liquidity, flexibility, and cost efficiency.

• Gold coins offer a simple and highly liquid way to invest in gold, preserving value during uncertain market conditions.

• Note: Premiums and market conditions can fluctuate, so investors should pay close attention to current prices when purchasing gold coins.

• The Gold Buffalo is the first 24-karat gold coin issued by the U.S. Mint.

American Gold Eagle vs. American Gold Buffalo Comparison Chart

The United States Mint

The Philadelphia facility produces coins and medal dies

The United States Mint is responsible for producing circulating coinage for the U.S. to conduct its trade and commerce and for manufacturing and distributing circulating precious metal, collectible coins, and national medals.

The U.S. Mint holds the exclusive role as the Nation's singular producer of legal tender coinage, tasked with creating coins for circulation that are vital for the country's trade and commerce operations.

Gold Bullion Coin Act of 1985

The Congress passed the Gold Bullion Coin Act of 1985, or Public Law 99-185, on December 17, 1985. It authorized American silver and gold bullion coins, enabling investors to own precious metals through government-backed coins.

This led to the American Gold Eagle and Silver Eagle programs in 1986. Two of the most popular programs among collectors and investors, due to their quality, purity, and connection to the U.S. government. In fact, the law dictates that American Gold Eagle coins must be produced with gold mined from US gold reserves.

The American Gold Eagle Coin

American Eagle gold coins, produced by the United States Mint since 1986, remain among the most recognizable bullion coins in U.S. history.

They carry legal tender status nationwide and are backed by U.S. government. According to the U.S. Mint, their weight, content, and purity are government-guaranteed, which is why these coins are also eligible for inclusion in IRA accounts.

Composition specifications:

This gold alloy, composed of 91.67% gold and 3% silver, with a reeded edge, is called "crown gold" (or "fine gold").

American Gold Eagles are unique; despite being 22-karat, they guarantee one full Troy ounce of gold because silver and copper are added to the gold, making them slightly heavier than 24-karat coins like the Canadian Gold Maple Leaf.

The weight and diameter differ for the one-, half-, quarter-, and tenth-ounce sizes.

• One-Ounce Coin

  • Face Value: $50

  • Diameter: 1.287 inches (32.70 mm)

  • Gold Content: 1.0000 troy ounce

  • Weight: 1.0909 troy ounces (33.931 g)

• Half-Ounce Coin

  • Face Value: $25

  • Diameter: 1.063 inches (27.00 mm)

  • Gold Content: 0.5000 troy ounce

  • Weight: 0.5455 troy ounces (16.966 g)

• Quarter-Ounce Coin

  • Face Value: $10

  • Diameter: 0.866 inch (22.00 mm)

  • Gold Content: 0.2500 troy ounce

  • Weight: 0.2727 troy ounces (8.483 g)

• Tenth-Ounce Coin

  • Face Value: $5

  • Diameter: 0.650 inch (16.50 mm)

  • Gold Content: 0.1000 troy ounce

  • Weight: 0.1091 troy ounces (3.393 g)

Gold American Eagle's Design

Obverse Side

The obverse features a rendition of Augustus Saint-Gaudens' full-length figure of Lady Liberty, with flowing hair, holding a torch in her right hand and an olive branch in her left, symbolizing freedom, liberty, and opportunity.

Behind her, we see the Capitol building and a sunrise, symbolizing a new beginning, hope, and a bright future.

This is one of the most popular designs in American Coinage history. Created by sculptor Augustus Saint-Gaudnes, it was first used for the Double Eagle Gold Coins from 1907 to 1933.

Reverse

From 1986 to 2021, the reverse featured an eagle carrying an olive branch as it flew over a nest, a creation of Sculptor Miley Busiek. This reverse imagery prominently displayed a family of bald eagles, symbolizing American strength and unity. The design holds historical significance and has been updated over time to reflect evolving interpretations of patriotism.

The eagle holds an olive branch, representing peace, in its right claw and arrows, symbolizing strength and defense, in its left claw. While the female eagle shields two eaglets inside the nest.

In 2021, to mark the 35th anniversary of the American Eagle Coin Program, the reverse was redesigned to show a close-up portrait of an American Bald Eagle, as shown above. The inscriptions are UNITED STATES OF AMERICA, E PLURIBUS UNUM, and IN GOD WE TRUST.

The American Gold Buffalo Coin

The Gold Buffalo Coins, introduced by the U.S. Mint in 2006, are also highly sought after. Each coin contains a full troy ounce of 0.9999 pure gold, making them comparable to top-tier coins.

American Gold Buffalo Coin Design

One of the most notable features of the Gold Buffalo is its iconic design. The Gold Buffalo features a Native American portrait on the obverse and a buffalo on its reverse, both based on designs by sculptor James Earle Fraser, who created the original motifs for the 1913 Buffalo nickel. James Earle Fraser was responsible for the design that remained in use for 25 years and later appeared on the American Buffalo Commemorative Coin series.

The American Gold Buffalo features Sculptor James Earle Fraser’s iconic 1913 Type I design. Each coin contains one troy ounce of .9999 fine (24-karat) gold, making it one of the purest government-issued bullion coins available.

Its weight, content, and purity are fully guaranteed by the United States government, and both obverse and reverse replicate the original imagery of the 1913–1938 Buffalo (Indian Head) nickel.

Obverse

The obverse side showcases a native american profile, in honor of the first inhabitants of the american lands, with the inscription "LIBERTY" above his face and the year placed on his shoulders.

Reverse

The reverse features an American Bison, honoring the historical significance of the Nation’s westward expansion and pioneering spirit.

Gold Buffalo vs. Gold Eagle Debate

The two coins reflect America’s heritage and natural beauty, but to us, every comparison starts with investor priorities.

Read on to explore the key differences in design, composition, and investment value.

Composition and Gold Purity

Purity measures the percentage of a coin that is pure gold, expressed as fineness or karats. Higher purity means a higher percentage of gold.

The American Gold Buffalo contains 24-karat gold with 99.99% purity, offering maximum gold content. The American Gold Eagle, minted in 22-karat gold (91.67% purity), includes copper and silver alloys for added durability.

Winner (Purity): American Gold Buffalo with confidence. With a higher purity, it aligns more closely with gold investors who prioritize maximum gold content over durability.

Value and Price

The value of both coins is primarily driven by the spot price of gold, as they are bullion issues. Premiums vary based on wide availability, condition, mintage levels, market demand, and transaction costs.

Because these coins are involved in frequent transactions, premiums reflect not only gold prices but also distribution costs at the time of purchase. The American Gold Eagle’s wide availability typically results in lower and more stable premiums, while Gold Buffalo premiums tend to be higher and fluctuate more.

Winner (Premiums): American Gold Eagle, lower acquisition costs offer a clear advantage for investors focused on efficiency and liquidity.

Availability and Rarity

The American Gold Eagle has been minted for a longer period and in higher volumes, making it more widely available and typically priced closer to spot. The American Gold Buffalo, produced in lower numbers with a distinctive 24-karat format, is perceived as scarcer and often commands higher premiums.

Winner (Availability & Liquidity): American Gold Eagle, with 40 years of history, has a broader supply supporting easier acquisition, resale, and generally lower premiums that better align with most gold investors’ liquidity needs.

Variety of Denominations

The American Gold Eagle is available in 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz sizes, offering greater flexibility for different budgets and exit strategies. The American Gold Buffalo is issued only in a 1 oz format.

Winner (Denomination Flexibility): American Gold Eagle. Fractional options provide superior accessibility and liquidity for most investors.

The Contrast Between The Designs

Both coins are rooted in American heritage. The American Gold Eagle benefits from decades of visibility, widespread marketing, and familiarity among U.S. investors and dealers. The American Gold Buffalo, while highly regarded, has a shorter history and a design more closely associated with collectors.

Winner (Design Recognition, U.S. Market): American Gold Eagle. Stronger domestic familiarity and long-standing recognition support easier resale and broader acceptance among U.S. bullion buyers.

Across each category, the comparison highlights how different market conditions make one coin a better fit than the other, depending on the investor’s priority.

While premiums, liquidity, and purity vary by coin, each factor ultimately ties back to gold’s role as a durable store of value, one that is not diminished by inflation, policy shifts, or physical wear when properly held.

This broader context leads to the more fundamental question: why invest in gold at all.

Why Invest in U.S. Gold Bullion Coins?

In the face of historical economic turbulence, gold has stood as a beacon of stability. Stacking gold has become a standard approach for many investors seeking to protect their wealth.

In moments of high inflation, the price of gold often rises, providing a hedge against inflation.

Universal Currency

Gold is globally recognized and tends to be highly liquid, making gold coins easy to shop and sell. Because gold is not tied to any single country’s financial performance, it also helps protect against country-specific economic risk.

Diversified Portfolio and Hedge Against Inflation

Illustrated above are other popular gold coins from mints around the world: the Canadian gold Maple Leaf (the most popular Canadian coin), the Australian Kangaroo Gold Coin, the Gold Britannia coins, the Austrian Gold Philharmonic, and the South African Krugerrand.

Distributing investments across different asset classes can help an investor avoid losing all their profits if one asset class underperforms.

It is the principle of diversification. One investment is independent of the other, so, for example, gold often does well when the stock market goes down.

Demand and Value

As a limited resource, gold tends to rise in price as demand grows over time. Unlike paper currency, gold coins can preserve value for centuries and may appreciate further based on condition or numismatic appeal. While silver is more affordable, it is generally more volatile than gold.

Last year, global gold demand was largely sustained by investment activity, particularly in gold coins and gold bars, reinforcing gold’s role as a preferred store of value.

In the Gold Eagle vs. Buffalo Coin debate, both are U.S. Mint–issued bullion coins that appeal to investors in different ways.

Final Thoughts

Gold coins remain an attractive way to diversify an investment portfolio, offering both long-term value preservation and collectible appeal. As American gold coins, each option discussed reflects a strong heritage, from the historic Buffalo Nickel design to the enduring symbolism of U.S. bullion.

Recognized and traded around the world, gold bullion coins provide tangible protection against economic and political uncertainty. From an investment perspective, the American Gold Eagle offers a clear advantage in liquidity and flexibility, while the American Gold Buffalo may carry higher premiums due to its purity and collector appeal.