While I was in surgery, the US Mint announced that they will be accepting orders for the new American Buffalo 24-karat Gold Coins starting on July 22, 2008. In addition to the one ounce coin that has been issued since 2006, the Mint will add half ounce ($25), quarter ounce ($10), and one-tenth ounce ($5) fractional issues. They will also sell a four-coin sets that contain one coin in each size.
I was curious as to what premium the Mint was putting on these coins. Using the spot price of $975.10 (as of market close, 4:00 PM on July 15), I took the Mint’s announced price of these coins to create the following table:
|Option||Price||Metal Value||Premium||Premium Pct|
|Proof One Ounce||$1,199.95||$975.10||$224.85||23.06%|
|Proof Half Ounce||$619.95||$487.55||$132.40||27.16%|
|Proof Quarter Ounce||$329.95||$243.78||$86.18||35.35%|
|Proof Four-Coin Set||$2,219.95||$1,803.94||$416.02||23.06%|
|Uncirculated One Ounce||$1,059.95||$975.10||$84.85||8.70%|
|Uncirculated Four-Coin Set||$1,959.95||$1,803.94||$156.02||8.65%|
If you are into buying gold coins for investment purposes, it looks like the uncirculated one-ounce and multi-coin sets are the best bargains. Since I am not an investor, I will be purchasing the proof one-ounce coin to go with my 2006 and 2007 coins.