Are the prices of the gold Buffalos influenced by the new-issue craziness, and will prices come down

Longacre · June 20, 2006 10:08PM

I would like to buy one of the new gold Buffalo coins. However, I refuse to pay a huge premium over spot because these are just bullion pieces. Some of the issue prices that I've seen are insane (like the coins selling for around $700 when the spot price of gold is around $580). Does anyone know whether the high prices are the result of the newness of the coins, or whether they will continue to sell for a numismatic premium (even though they are just bullion)? I believe the mint only distributes these coins to authorized retailers, so maybe the mint is the culprit. Any thoughts?

Hyperion · June 20, 2006 10:10PM

the price of the coin is what someone will agree to pay for it. it's newness, craziness. they're going to produce as many of these as people want them... maybe just wait til the end of the year when the demand goes through the floor (and settles to normal bullion coin demands), and pick one up at a rational number (spot + )

Hyperion · June 20, 2006 10:11PM

apmex is 609. seems reasonable to me.

apmex linx

Stork · June 20, 2006 10:14PM

CNI charges the same for eagles and buffalos (golddealer.com)

jabba · June 20, 2006 10:15PM

Its the 1st 24K coin to start with + being the Buffalo that has done so well in the past, Im going to say unless there going to pump out more that 300K the price may not go down. But on the other hand if gold tank's and they make the buffalo the new 24K coin and make it every year then it would fall closer to spot.

ABC123 · June 20, 2006 10:20PM

These coins(sold on apmex) have very little, if any, numismatic added value. Buy them now, if you feel gold is going up. Wait if you think down. Very Simple !

291fifth · June 20, 2006 10:27PM

They are bullion "coins" and should be bought as such.

Are the prices of the gold Buffalos influenced by the new-issue craziness, and will prices come down

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