Will the 2020 Gold Buffalo be Key?
Onastone
Posts: 4,160 ✭✭✭✭✭
With Coronavirus raging through the US and most people unemployed, the release of the American Buffalo 2020 One Ounce Gold Proof Coin tomorrow April 9th could be a tough sell. Could it be the lowest minted Buffalo?
Will the 2020 Gold Buffalo be Key?
This is a private poll: no-one will see what you voted for.
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Not buying... but that is because I am not building a set....No vote line for that.
Cheers, RickO
I'm undecided right now. Maybe in a few months
Just more bullion.
It will be interesting to see sales numbers on this. I just saw the posted price tag, $2315.00 Good as gold.
Hasn’t there been a new key every year for the past few years on almost all bullion?
Not collecting it.
The Mint may well have discovered a way to keep me from buying their stuff. $2,315.00
I knew it would happen.
Good lord. A premium on top of a premium. Brilliant to keep the numbers low.
I bought 2-2013 reverse proof buffalo's from the mint and got them both graded, both come back PR-70. thought I was going to lose money on them, but they are selling well above issue price now, glad I kept them
I really think the glory years of bullion (and modern) keys is over. Too much abandonment of coins in commerce, too little (related ) familiarity and appreciation of coins among younger folks, and too many "key" bullion issues because of extortionate Mint pricing and diminishing demand.
Here's a warning parable for coin collectors...
I’m not putting together a set so I don’t see a lot of need for it. I do have a 2006 PR70. This year’s price is through the roof.
I agree, it is bullion. How many people that collect them by date?
2020 seeing a huge upswing in bullion demand, no way will it be key. Just look at the mints March sales. You forgot to put a no option in poll.
Not a big fan of US Mint products these days, esp at their prices. Pass.
Dave
Cash will be key.
$2,315. I bought a slabbed 2006 PR70 for $1,550 a couple of years ago.
price will keep mintage low.
No Way Out: Stimulus and Money Printing Are the Only Path Left
That's what I thought. Just looking at the results from a handful of us, it doesn't look like many will be selling, at this point not one from us. Too expensive, wrong timing, too many out of work, money too tight, bullion, cash is king, not collecting them... this may be a super dud.
The economy might make it really low mintage. Then again, it seems anything that’s 1 Oz. of gold is getting snatched off the shelves.
Not buying and not because of uncertainty but just because this one did not turn me ON and I do have a few buffs already
Why is this $2315 and not $2110 like the 2020 Mint price sheet says for gold between 1700-1750?
My US Mint Commemorative Medal Set
The Mint changed Grid Pricing on March 17, 2020
Launch Day Sales for the 2020 Gold Buffalo Proof was 4,750
Total Revenue was $10,996,250...
I'm not sure anymore that low mintage modern US Mint products matter that much anymore as far as bringing big premiums later... The 2019 W ERP ASE would be an exception. Correct me if i'm wrong..
On 2-14-20 I ordered a 2020 - 2 oz Gold Proof Brittania from the British Royal Mint . I think it cost me about $5 000. Mintage will be around 150 !
Those 2020 Proof Buffalos are almost up to the same inflated per oz Cost. But nothing at all special about them.
Not buying. At that price no real upside for many years regardless of mintage. US Mint is pricing themselves out of the game.
No Way Out: Stimulus and Money Printing Are the Only Path Left
Secondary market on ALL of these bullion issues. Has worked well for me over 95% 0f the time, saving a bundle while stacking bullion.
secondary market on an ounce of gold that originally cost $2315 is not gonna work for anyone unless gold shoots past $2200. Too many other ounces of gold much cheaper. Don't see it as a good flip candidate at all.
No Way Out: Stimulus and Money Printing Are the Only Path Left
It will almost certainly be the lowest mintage proof since the past 3 years were around 14-15,000 minted. It will probably end up lower than the 2008-W uncirculated at 9,074. To pay $600 over spot, is just really too much.
I am a little surprised they already sold around 5,000.
My US Mint Commemorative Medal Set
Dealers slabbing might have driven that number.
My local dealer offered $35 over spot greater for the Unc gold Buffalo than a Unc gold Eagle.
Any ideas why?
My guess is certified .9999 Buffalo can be easily melted into bars for the big banks and COMEX. The eagles have to be refined at quite a cost. Maybe not the only reason, but seems possible.
My US Mint Commemorative Medal Set
No, it won't, not even close. First week sales are tracking not far from 3x last year. Rising gold prices increasing demand greatly and people like the OP ignoring the fact dealers are by far the bigger market for the mint. I've seen lots of dealers preselling 70 graded buffalos for more than the mint sells them and dealers get special pricing as well.
Demand the greater factor in sales figures. The Mint is happy to supply a bunch at an inflated price. 2020 gold eagle proof sales through the roof too as is gold demand everywhere I look.
Yes there is high demand, but the West Point Mint is shut down due to virus and no new Buffalo or eagle gold being minted at least for a while, so maybe by the time they start, the Basketball gold will take priority considering these high mark ups. That could keep this 2020 Buffalo mintage lower but who knows how many they already have on the shelf.
I'd rather keep the 2008's as the Buffalo keys anyway.
My US Mint Commemorative Medal Set
There is little dealer discount on these
All comments reflect the opinion of the author, evn when irrefutably accurate.
I heard the mint will stop all gold production.
According to this link (posted by @Jimnight ) the Mint has shut down their gold production....could affect mintage, depends on how long they stop and IF they then produce (and sell) the full authorized mint allowance. Cheers, RickO
https://finance.yahoo.com/news/u-mint-halts-coin-output-195900161.html
Price is climbing. Currently at $2415.00
The price dropped earlier this week, it's now at $2365.00 So there's a $50.00 bill for you.
Anyone know how I can best cash out of my Proof Buffalos? Seems a shame to get the same money as an Eagle or BU Buffalo.
Other than the allure of proof collectibility, that is an excellent point to consider when you buy proof over BU.
Try the BST Forum. Perhaps you will find an interest there.
One thing I like about proofs is being the first owner if you order it straight from the mint