What’s The Difference Between the Gold Eagle and the Gold Buffalo?

Since 2006, there have been two gold bullion coins produced by the government of the United States of America. The US Mint has offered the Gold Eagle since 1986, but chose to add the Gold Buffalo after the Eagle had enjoyed a 20-year monopoly, so to speak.

Both coins have been immensely popular collectibles since their respective inceptions. Both of them routinely command higher prices than other prominent bullion coins, like the Gold Maple Leaf or Gold Krugerrand.

Now, you may not immediately understand the differences between the two or why you would choose one over the other. So, this page is here to help you make a better decision.

At the end of the day, there’s no wrong choice. However, you should make the right choice for you, and we can help you do that.

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Side-by-side Comparison of the Gold Eagle vs. Gold Buffalo

Before we get into the details, let’s break down the two coins side by side.

*Troy ounces, not standard/imperial ounces

Design of Gold Eagle vs. Gold Buffalo

Both coins have historical designs on them that pay homage to past coinage in US history. Given that the Mint intends these pieces to be collectors’ items, it makes sense to sculpt them in the style of two of their “greatest hits,” so to speak. So, let’s talk about the way each of these coins looks.

Gold Buffalo

The Gold Buffalo is the newer of the two American bullion coins and has only been produced since 2006. However, its design is nothing short of classic.

The Native American portrait on the obverse and the buffalo portrait on the back are both modified versions of the designs on the historic buffalo nickel. These two portraits were the work of sculptor James Earle Fraser, who created the images after his commissioning in 1911.

The buffalo nickel became one of the storied coins of the 20th century due, in part, to their designs. So, the Mint chose to nod to this venerable design when it created its new bullion coin.

Gold Eagle

The Gold Eagle has been around long enough that it has its own reputation. The original modern bullion coin of the USA is renowned by investors around the world and is one of the most popular gold purchases today.

When the Mint decided to unveil its new bullion coin, it seemed appropriate to use a version of one of the most celebrated designs ever used on an American coin. Augustus Saint-Gaudens’ design of Lady Liberty that he created for the Saint-Gaudens Double Eagle, the early 20th-century $20 piece.

Saint-Gaudens never lived to see either of the coins he designed be introduced. However, the fact that his image has adorned the obverse of this coin from the beginning stands as a fitting testimony to his legacy.

As befitting its theme, the design on the reverse of the Gold Eagle has featured an eagle. The first design, the product of sculptor Miley Busiek, displayed the national symbol soaring in the sky. A more recent design, however, now depicts only the side profile of the eagle – a choice by sculptor Jennie Norris.

Purity of Gold Eagle vs. Gold Buffalo

Perhaps the biggest difference between the Eagles and the Buffalos is their purity. The Gold Eagle has been minted in 22-karat gold since its first stamping in 1986. Specifically, the Eagle’s alloy is 91.67% gold, 5.33% copper, and 3% silver.

By contrast, the Gold Buffalo is the purest gold piece ever minted by the US Mint. It is minted with 99.99% (or higher) fine gold. In other words, the Gold Buffalo is a 24-karat coin.

This higher purity was mandated after the 2005 passage of the Presidential $1 Coin Act. The language of the law specifically mandated the design and metallurgy of the coin.

Now, there’s no explicit reason given for the creation of such a coin. However, it is entirely possible that the coin is a response to the Canadian Gold Maple Leaf, which is minted at the same level of purity and exceeds the purity of the Gold Eagle.

Because of its increased gold content, the Buffalo often sells for more than the Eagle. However, this relationship is not set in stone. The reputation and history of the Eagle sometimes generates a higher premium, even though the Buffalo is significantly purer.

Denominations of Gold Eagle vs. Gold Buffalo

When we refer to the Gold Eagle or the Gold Buffalo, we are referring to the 1-oz version of the coin. However, there are some fractional-ounce coins available for purchase through one of these series.

Specifically, the Gold Eagle is available in ½ oz, ¼ oz, and 1/10 oz denominations. As a general rule, the premium on these coins increases as they decrease in size. In a sense, buying gold is like buying many products – cheaper in bulk.

By contrast, the Gold Buffalo is available in a single denomination – the 1 ounce. So, the price of a Gold Buffalo is universal.

Both 1-oz coins bear a face value of $50. Interestingly, the Buffalo is slightly larger in diameter than the Gold Eagle, although the size is not a factor in their value.

However, since both coins contain a full troy ounce of gold, the Gold Eagle is a heavier coin because of its other metals.

Premiums of Gold Eagle vs. Gold Buffalo

Though Buffalos and Eagles trade places with each other in terms of expense, they are usually priced very closely to each other. In general, they are available for roughly 5% above the spot price of gold.

However, you may also notice that both coins routinely trade for higher prices than other countries’ bullion coins. The Canadian Gold Maple Leaf, the British Britannia, and the South African Krugerrand all consistently command lower premiums than the American coins – even when they exceed the purity levels of one or both of them.

The reality is that the American influence and backing of the mighty American government counts for something in the minds of investors and collectors. There is a certain reliability in the value of Eagles and Buffalos that exceeds (slightly) the trust given to the foreign coins.

On the one hand, it may seem more economical to choose one of the other coins. Conversely, you should also think about the resale value of your purchases.

Liquidity of Gold Eagle vs. Gold Buffalo

Another aspect to consider is closely tied to the notion of resale value. The American Gold Eagle and Gold Buffalo are likely to be more liquid investments than bullion coins from other nations – particularly if you are trading in the US.

Because the two coins – especially the Eagle – are such well-known commodities, it is easier to find buyers and sellers for them than other coins. People know these coins.

As far as their comparative liquidity, the Eagle is going to surpass the Buffalo due to its reputation and seasoning within the market. Again – the Eagle’s premiums go back and forth with the Buffalo despite its lower gold purity. We cannot deny the ingrained popularity of the Eagle over the Buffalo, and the situation is unlikely to change.

IRA Eligibility of Gold Eagle vs. Gold Buffalo

Many people save for retirement through an Individual Retirement Account, or IRA. Naturally, some of us would like to include gold or other precious metals as part of those accounts. So, are IRAs permitted to accept Gold Eagles and Gold Buffalos as parts of their investments?

Yes. The IRS, through mandates in US Code, allows for gold coins to be included in IRAs so long as they meet certain requirements.

Gold Eagles are all but specifically defined as acceptable in the law. A coin, as defined under the law, includes “a fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold.” Since those parameters are exactly the attributes of Gold Eagles, you can use them in IRAs

The other types of gold coins permitted for inclusion into an IRA are any uncirculated coins minted with .995 fineness or greater. The Gold Buffalos exceed these requirements, and are thus permitted for introduction into your IRA.

Contact Us

Now that you understand the differences between America’s two gold bullion coins, you are ready to make a decision. Again – there’s no wrong answer, but you have to decide which set of attributes is more important to you.

We are here to help. If you are ready to make a decision or just have questions, please reach out to us. JM Bullion is open around the clock to answer any questions about Gold Buffalos, Gold Eagles, or other precious metals needs that you have.