Many people are interested to invest their hard-earned money on American Buffalo gold bullion coin as it is considered to be the purest form of gold available in the market.
However, while investing in gold buffalo coins, you may have many questions in your mind. Here in this article, we shall try to answer few of the basic questions about gold buffalo coins that you always wanted to know.
- What is gold buffalo coin?
It is a one ounce of pure form of gold with 99.99% purity of 24 carat gold, which is produced by US mint. It features buffalo nickel designs or James Earle Fraser’s classic emblem with Indian head. It was first time introduced during June 2006 with great amount of success. Its legal tender value is $50 however its resale value is far above $50.
- How much worth is $50 gold buffalo coin?
Initial value when it was introduced in 2006 was $50 however due to its very high demand, its price continued to shoot upwards. Its price raised to $800 in the same year and in 2007 it was priced at $900. During the recession period between 2008 to 2011 economy was down however gold prices were going continuously up. During 2011 its price was $2,000.
- How many gold buffalos are minted every year?
The maximum number of gold buffalo coin was minted in 2006, which was 337,012 coins and 246,267 proofs. However, it reduced the number in the next year and again started increasing the number slowly during subsequent years. However, in 2012 it minted minimum number of 100,000 coins and last data available for 2016 is 219,500 coins.
- Can we consider gold buffalo as legal tender?
Its legal tender value is $50 and is produced in the USA under the Presidential $1- coin act. Its purity and value are guaranteed by US government. It can be used as legal tender but people use it only for investing and collecting only. Few companies also sell cheap gold buffalo coins for $19.95 but beware of them. If its face value is not $50 then it is not legal tender.
- Are they taxable?
If by doing purchasing and selling you have earned any profit then you must declare that as capital gain, which is subjected to taxation as per the IRS act. It is taxed at the rate of 28 percent as long-term capital gain.