2006 Buffalo Gold $50 on ebay!

Hello,

I am looking at buying the PCGS PR70 DCAM 2006 $50 GOLD BUFFALO PROOF for an investment. Just wondering if you guys think this would be something to go after, or is there any other coins you could all recommend as an investment?

Thanks,
Jeff

 

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it would be cheeper to buy direct from the mint http://catalog.usmint.gov/webapp/wcs/stores/servlet/ProductDisplay?catalogId=10001&storeId=10001&productId=13730&langId=-1&parent_category_rn=14239.

 

2006 American Eagle Gold Uncirculated One Ounce Coin (Z6A)

Would this be better than the American Buffalo.

Thanks,
Jeff

 

While it would be much cheaper to buy directly from the mint, there is no gaurantee (and odds are most likely against) randomly getting a $50 Gold Buff that would grade out at a PR70 DCAM at PCGS.

Personally, I am not a modern coin guy, so I avoid this. I'm also not really into modern PR70 DCAM/First Strike stuff, but plenty of people seem to be. In fact, many people are making good returns buying limited sets and mintages from the mint, and turning them on ebay. I haven't tried this, so I really couldn't comment.

As for investing, I would look to other investment vehicles if you are looking for a solid return (equities, debt, etc.). Unless you are looking at maybe a 5-10% diversification into rare metals, I would avoid coins a pure investment play.

Many people have good results (not necessarily monetary ones) by simply collecting coins for their own personal pleasure. If their collection appreciates, then they are happy; if not, they are still happy.

By the way, welcome!

 

As a follow-up, I have read a decent book on investing in coins by Q. David Bowers. It is called The Expert's Guide to Collecting and Investing in Rare Coins (available at most any bookstore or online).

If you are set on investing, you may want to start with this book first. Good luck!

 

Jeff:
Welcome.
Just be sure that it is PCGS and NOT PCS or any other permutation of letters.
Also, as far as investing, first decide if you are a gold bug, or looking for rare or scarce coins.
Gold values will fluctuate with the value of gold, although here you are paying a good premium for condition.
However, rare and scarce coins will always be rare or scarce.
flyer is right, read Bowers' book as a starter, then read some more.

 

Am I to understand that the Bufalo Coin is going to be a regular annual mintage?

Ruben

 

It's supposed to be a full calender year design. The legislation was apporved late enough that the Mint didn't start minting these until the middle of this year. So, they are being offered for at least a full year meaning that they will be offered in 2007. The Mint will extend sales of the 2007 Buffalo gold program through the end of 2007 and include fractional pieces matching that of the American Eagle Gold Program.

After 2008, the Mint can offer a 24K buillion coin with a different design if it so chooses.

 

And the 2007 and fractionals don't have to be aproved by Congress?

Frankly, this is getting to be a bit much and the Presidential coins are going to be the icing on the cake. You must need almost $20,000 to buy all the Mints coins these days. They are flooding the collectables market.

Ruben

 

I don't think the fractionals need to be approved by Congress. Although, I'm not sure. For the new dollar coins, the Mint would need Congressional approval to mint the dollars in proof silver.

By 2007, it will be close to $20,000 for sure to get each of the Mint's products. In 2006, it was very close to $15,000. It is out of hand. Their prices are way too high. But, people will pay those prices. So, I guess it's hard to blame the Mint for keeping them high.

 

I don't believe that these "grade rarities" are going to be such a big deal in the future, and people aren't going to pay such a big premium over the minute differences between PR69 and PR70 as they do now. As such, I wouldn't expect a graded PR70 coin to be a good investment - atleast in the long term. Probably either a PR69 graded coin or a raw coin would be a better investment, in my opinion.

As for the Uncirculated American Eagle vs the Buffalo, remember the Buffalo is a popular coin (good thing - high demand), but that also means a lot have been sold (large supply of them out there). In contrast, the Buffalo certainly has taken sales away from the American Eagle coins, and the American Eagles for this year could be a sleeper if the mintage turns out to be lower than previous years. Another coin to consider would be the 2007 Buffalo, coming out real soon now. I'm going to guess that the 2007 Buffalo is going to have a lower mintage than the 2006, as most people who wanted a Buffalo as a type coin already have a 2006 one, and won't be buying the 2007 Buffalo.

Of course, this is all speculation on my part, so I would advise doing your own research and coming to your own conclusions before purchasing.

 

Thank you everyone for the advice, I think I will do some research first. I always seem to make these quick decisions without thinking too much.

Jeff

 

I think that any coin you can get at melt price is a good investment , look at what silver has done in the past year: started at 9.00 oz and closed at 14.12 today