Mint sells 75,000 Proof Buffalos first 24 hours

CaptHenway · June 27, 2006 5:24AM

Yes, another Buffalo thread!
Coin World's online edition, www.coinworldonline.com, is reporting that the Mint sold 75,000 of the Proof Buffalo golds in the first 24 hour period.
TD

HonoluluDude · June 27, 2006 5:25AM

Only 225,000 to go until we see them on ebay at inflated prices.

holeinone1972 · June 27, 2006 5:26AM

I hope so. I need to make a good guess one of these times.

LOL

ziggy29 · June 27, 2006 5:27AM

<< Only 225,000 to go until we see them on ebay at inflated prices. >>

As opposed to buying from the Mint...at inflated prices.

LanLord · June 27, 2006 5:28AM

Cool, another gold buffalo thread

(sorry, I had to do it!!!)

I know where one went!

techeff · June 27, 2006 5:29AM

Is Russ taking a pee break?

Dabigkahuna · June 27, 2006 5:31AM

That order system online and the phones were down most of that time. I wonder what the figures are now?

There are just not enough Buffallo threads these days.

MajorDuty · June 27, 2006 5:32AM

75,000 Proof Buffalos in the first 24 hours sounds more conservative than the early estimates posted on these boards, isn't it?

I was curious about those posts where people ordered at two different times, then noted difference between the order numbers, and calculated out how many coins were sold in between. That assumes the order numbers go exactly sequentially 1, 2, 3. Or 10001, 10002, 10003, or what ever the number format was. Does anyone really know how the Mint generates their order numbers? Do they even know?

kranky · June 27, 2006 5:59AM

That 75,000 includes most of the people who were very motivated to get some. I look for a big dropoff in orders after the initial surge. I'd be surprised if they sell 200K total.

CoinGuy42 · June 27, 2006 6:08AM

I placed an order with the mint on 6-22 and again today, 6-27. During those 5 days, based on order numbers, the mint has processed 97,290 orders. I think they assign order numbers consecutively as I have placed two orders in the past, one right after the other, and received order numbers very close together. 97,290 orders made in 5 days leaves me to think the mint will sell out the buffalos relatively soon. Admittedly, many of those orders are likely for other mint products too.

Bottom line for me.....I buy 10 buffalos and sell 9 to defray the cost of the one I keep to at least below spot, perhpas even free, with not really much to risk. So, I'll get my buffalo to keep and enjoy at a very modest price. Plus.....I get 8004 frequent flyer miles :-).

KeithinMD · June 27, 2006 6:47AM

That does not sound all that impressive, even though they do cost $800 each. I would have thought at least half would have been sold on day one.

kranky · June 27, 2006 7:01AM

Regarding looking at order numbers... wouldn't the order number increment no matter what product was ordered - proof sets, etc.?

tincup · June 27, 2006 7:09AM

Sure looks like a neat coin. But with a mintage like that..... I'm just not convinced that it is that good of a deal. However, I do think it will sell out.

MajorDuty · June 27, 2006 7:13AM

<< Regarding looking at order numbers... wouldn't the order number increment no matter what product was ordered - proof sets, etc.? >>

Could very well be. Someone should try an experiment: Buy something like an SAE, then later the same day place an order for a Proof Set, and compare the order numbers.

INXS · June 27, 2006 7:33AM

There should be two more as I just cancelled mine, I'll hold the two UNC's and thats it. I will be watching for the 20th anniversary sets. Its going to cost alot of money this year if you get one of each. The cost was just to high and I talked myself out of the GB proofs.

crito · June 27, 2006 7:39AM

The proofs should hold their value better than the uncs, when the price of gold gets cut in half, that is.

GAT · June 27, 2006 9:10AM

I wouldn't read too much into the Buffalo sales figures at this point. If gold dropped $100, I suspect 90% of the existing orders would be cancelled. Even a $50 drop would trigger large cancellations.

obleft · June 27, 2006 9:20AM

If the price of gold continues to fall, would the us mint lower their price?

TwoSides2aCoin · June 27, 2006 9:29AM

Hurry ! Time's running out.

crito · June 27, 2006 9:30AM

When gold was $300/oz in 1999 proof one ounce gold eagles were $600 straight from mint. So I don't think they'll drop price on those much regardless. Unc buffalos are trading like bullion at this point though, so wouldn't be so sure about those, at least not until next year, if/when they change the design like they're supposed to.

tincup · June 27, 2006 10:53AM

Hmmm.... let's see..... 75,000 coins, at $800 a pop....... comes to around 60 million dollars. That's quite a chunk of cash going towards these coins, in only a 24hr period. Impressive to me anyways.....

SanctionII · June 27, 2006 11:04AM

I would like to see all 75,000 proofs ordered so far get sent by the Mint to PCGS for slabbing and then to the customer who ordered same. It would be interesting to see the grades assigned by PCGS. How many would be 70 DCAM and how many would not. What would be the lowest grade (67 or 68 DCAM).

tincup · June 27, 2006 11:17AM

Hey SanctionII, don't give that idea to the Mint..... they might realize that working a deal with PCGS would allow them to increase the issue price due to 'value added'; will get much more expensive for us! But it would be an interesting concept.... you order the coin from the U.S. Mint, they send it to PCGS, who grades and then ships to you. The Mint would not know what the grade is.... and you might receive a 'dog' or an MS70 or PF70! Of course, the Mint could not allow any returns with this service; what you get is what you get.....!

topstuf · June 27, 2006 11:58AM

Buffalos? GOLD BUFFALOS????

HonoluluDude · June 27, 2006 12:04PM

deleted

dpoole · June 27, 2006 1:59PM

I'll be interested in seeing the production quality of these. With the softer alloy mix and the special packaging, we may just see true perfection. I'd be surprised if they introduced this series without special care.

aficionado · June 28, 2006 12:15AM

WOOHOO !! VINDICATION !!

I posted this 24 hours after the Buffalo's went on sale, needless to say, some didn't agree:

" I put in a dummy order last night, the difference in the order number between about 1 PM and 9 PM was 40,000, times the average number of buffalo ordered.
Everyone ordered 1, not likely = 40,000 first day sales.
2 average, still low, = 80,000
3 average = 120,000 sold
5 average = 200,000 - sold

I'm updating my numbers.

50,000 orders are the difference between when I ordered and an order I just put in. " (at 11:30 AM Friday, 24hrs)

Looks like an average of 1.5 Buffalos per order, I though it would have been higher, non the less, the numbers jive. Thank you, Thank you very much.

By the way the difference in the order numbers is well over 100,000 as of Monday.

ScarsdaleCoin · June 28, 2006 12:47AM

For the guys who order 10 Buffalo in the hope to sell 9 and keep 1 for free....you may be in for a big disappointment..... you assume someone is going to pay you an extra $90 bucks $890 ..... as long as the mint doesnt sell out....who is going to pay you..... the big surge is now over and what about 100,000 pieces are sold......oh well...at least you can sell em to your local dealer and get spot....

BigTom · June 28, 2006 1:15AM

I don't see it either. I understand the whole supply and demand thing, but I also understand 300,000 is a big number. As a matter of fact it is very close to ten times the approximately 31,000 AGE's the mint has produced the last 8-9 years.

aficionado · June 28, 2006 2:06AM

Here's an idea, Maybe, Just Maybe, people like the coin and want to own one. Gee, what a concept.

As for the quality, I HOPE it's good, I hate sending back coins because they are crap. So why's that a bad thing?

As for reselling them, don't under estimate the stupidity of the consumer. Some Proofs have sold on ebay already, and they are still available from the mint.

As for 300,000, the first year of the AGE sold over 400,000. And that was BEFORE the internet. Plus there are more consumers of coins, worldwide.

But back to my original statement, maybe it's just a nice coin and people want to own it.

holadude · June 28, 2006 2:11AM

<< What would be the lowest grade (67 or 68 DCAM). >>

Probably lower. I actually have sent coins straight from proof sets that came back PR66 before. I did not crack them out first either. My own stupid fault for not paying attention before submitting though.

BigTom · June 28, 2006 2:23AM

<< ...................maybe it's just a nice coin and people want to own it. >>

IMO, that is the only reason to own it. But you don't buy 10 coins because you simply want to own one. I'd like to own one too, but I'm betting I can get one 5 years from now for $800 or less. We'll see if my patience is rewarded. If they change the design every year, I may loose that bet. Otherwise, I'm highly confident I can score it at a better price than the initial opening price (and spend my money elsewhere for now).

HighRelief · June 28, 2006 2:27AM

<< But back to my original statement, maybe it's just a nice coin and people want to own it. >>

That is what coin collecting is all about

JustaRookie · June 28, 2006 4:21AM

If one bought 10 of these with the intention of holding them for a lengthy period of time then undoubtedly they will get their return on the initial investment but I would agree if one expects to make an immediate profit, they may be in for a big disappointment.

INXS · June 29, 2006 4:34AM

Mint to begin shipping proofs on 07/06. At least thats what it said before I cancelled it.

DeepCoin · June 29, 2006 7:16AM

For those people interested in how the Mint numbers orders, each different method of ordering has its own numbers. So mail order, telephone, internet and subscription will all be different sequences. The big ones are telephone and internet.

Conder101 · June 29, 2006 10:59PM

<< As for 300,000, the first year of the AGE sold over 400,000. And that was BEFORE the internet. Plus there are more consumers of coins, worldwide. >>

And after 20 years, the 1986 proof still doesn't sell for much more than bullion and well below what the mint wants for the Buffalo. Long term I would suspect the same will happen to the buffalo and it will sell for a modest premium over the spot price. Unless they start changing the design yearly. Then they may hold their value better, or it may have no effect.

PerryHall · June 29, 2006 11:10PM

<< 

<< As for 300,000, the first year of the AGE sold over 400,000. And that was BEFORE the internet. Plus there are more consumers of coins, worldwide. >>

And after 20 years, the 1986 proof still doesn't sell for much more than bullion and well below what the mint wants for the Buffalo. Long term I would suspect the same will happen to the buffalo and it will sell for a modest premium over the spot price. Unless they start changing the design yearly. Then they may hold their value better, or it may have no effect. >>

What about the buffalo silver dollar? Is that selling at a small premium over melt?

keets · June 30, 2006 12:11AM

What about the buffalo silver dollar? Is that selling at a small premium over melt?

probably not a good comparison. i seem to recall buying the two-coin Buffalo set for $54.95 at the time of issue when silver spot was about $5. extrapolated for this Gold Buffalo, the selling price would be about $3000-----5X spot @ $600/oz.-----and noone would buy it. this is almost certainly tied more to the spot price at least for now. time will tell where it sells in the aftermarket. to carry the point further along, that $54.95 issued set seems to sell around $300 now, approximately 6X it's issue price. this buffalo as a single issue(either Pr or MS) will almost certainly never sell for $2400.

the silver Buffalo prices have remained steady since they reached their high point, fluctuating a bit to either side. tied to the spot price as a bullion issue as i suspect this new Buffalo will be, it'll probably be available only as long as the price of gold remains high. when that slips, as we all know that it will, the coins will probably not be readily available, instead seeking a safe pasture to graze in until the price rises to higher levels, again, as we all know it will.

from that perspective i view this issue as a ploy by the Mint and Congress to to dump some of the nations gold reserve at perhaps the most optimum time. i'm not one of the forum economists who knows how this stuff works, but it makes sense to me to dump the gold that was bought at a low price while the price is high, seeing as how the Mint could never have moved this same volume with the Eagle gold bullion.

DeepCoin · June 30, 2006 1:53AM

Keets,

The only problem with your theory regarding dumping gold due to high prices is this program has been in the works for about 2 years or more. It takes forever to get something approved by Congress from the intiation phase. This program is entirely independent of the price of gold with respect to its development.

TheRaven · June 30, 2006 2:00AM

But this program is sucking up newly mined supplies of gold likely causing some type of price increase I would assume.....

keets · June 30, 2006 2:57AM

This program is entirely independent of the price of gold with respect to its development.

ah, but is the timing of the gold increase and the release of this much ballyhooed Bullion Item coincidental, that's the real question. strangely there doesn't really seem to be any reasoning for the rise in Gold prices past other coincidental happenings, nothing else that couldn't have had a finger pointed at it some six months ago as a reason. it's kind of like the spike in gas prices this weekend-----it just so happens to take place every holiday weekend and there always seems to be some type of reason that the oil companies offer up to explain it, some coincidence. we all know it's prioce gouging, nothing ever seems to be done about it. i'm not given to conspiracy and i'm not a paranoic, just someone who grows more cynical over the course of time. it's funny how the generality with regards to politics is to be liberal when young and to grow more conservative, almost never the oposite, though i'm sure it happens. eventually everyone becomes a Republican.

mind you, now, i'm not saying that when the legislation for this Bullion Item was proposed some grand scheme was put in place to drive the price of gold up to where it is, but i do wonder about the timing of the gold price and the items release. i assume someone has profitted, it's just too much money for manipulation not to be involved. greedy, greedy, greedy. you know what, maybe there was a plan...............................

co·in·ci·dence ( P ) Pronunciation Key (k-ns-dns, -dns)
n.
1. The state or fact of occupying the same relative position or area in space.
2. A sequence of events that although accidental seems to have been planned or arranged.

Mint sells 75,000 Proof Buffalos first 24 hours

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