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 Tenth-Ounce $159.95 $97.51 $62.44 64.03%
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 Half-Ounce $539.95 $487.55 $52.40 10.75%
Uncirculated Quarter-Ounce $289.95 $243.78 $46.18 18.94%
Uncirculated Tenth-Ounce $129.95 $97.51 $32.44 33.27%
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.

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