American Gold Eagle vs Gold Buffalo: Same Ounce of Gold, Different Coin

If you only care about gold content, it's a tie: a 1 oz Gold Eagle and a 1 oz Gold Buffalo each contain exactly one troy ounce of fine gold. Choose the Eagle if you want fractional sizes or a tougher coin that shrugs off handling. Choose the Buffalo if you prefer pure 24-karat gold or the classic Fraser design. In practice, most buyers should simply pick whichever carries the lower premium per ounce on the day they buy.

The specs side by side

The US Mint makes both coins, both carry a $50 face value, and both are authorized by federal law. The details below come from 31 U.S.C. § 5112, the US Mint's American Buffalo page, and reference data on the Eagle and the Buffalo.

Purity: 22 karat vs 24 karat

The Buffalo was the first .9999 fine, 24-karat gold coin the US Mint ever struck, according to the Mint. It was authorized by Public Law 109-145, the Presidential $1 Coin Act, and first issued in 2006.

The Eagle takes the other approach. Its 22-karat alloy is the same standard South Africa uses for the Krugerrand, where Rand Refinery says the copper is there to make the coin harder to scratch. The Eagle mixes in a little silver as well as copper.

Neither purity is better for value. Dealers price both by their gold content, and both are sold as one-ounce gold coins. Purity matters more for preferences, durability, and some resale situations covered below.

Durability and handling

Pure gold is soft. A 24-karat Buffalo can pick up scratches and dings if coins rub together loose in a tube or get handled without care. The copper and silver in an Eagle make it noticeably tougher, the same reason Rand Refinery gives for alloying the Krugerrand with copper.

For a coin that sits in a capsule in a safe, this barely matters. For coins you expect to move around, show to people, or sell one at a time, the Eagle's toughness can help it stay in the cleaner condition buyers prefer.

Does the design change matter?

In 2021 the US Mint replaced the Eagle's original family-of-eagles reverse, used since 1986, with a new eagle-head design. Coins of both types trade as bullion, and dealers typically sell plain "random year" Eagles without letting you pick the type. If you specifically want one design, expect to pay a bit more for a specified year.

The Buffalo's design hasn't changed since 2006. Both sides reproduce James Earle Fraser's 1913 Buffalo nickel artwork, which is a big part of the coin's appeal to buyers who like classic American design.

Size options

This is the Eagle's biggest practical advantage. The US Mint makes bullion Gold Eagles in 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz sizes, so you can buy in smaller amounts or hold some gold in pieces that are easier to sell in parts later.

The Buffalo is essentially a one-ounce coin. The Mint struck fractional Buffalos only in 2008, so they're scarce and often sold at collector prices rather than as plain bullion.

One caution on fractions: smaller coins almost always carry a higher premium per ounce, because minting and handling cost about the same per coin regardless of size. Our guide to one-ounce coins vs small bars explains how that math works.

Premiums: what you pay over spot

Neither coin is sold to the public by the US Mint at bullion prices. The Mint sells bullion coins to a small group of Authorized Purchasers, who resell to dealers and the public. For the Buffalo, the Mint says Authorized Purchasers pay the LBMA PM gold price plus a 3% premium, with a 1,000-ounce minimum order. By law, the sale price of each coin has to cover the gold's market value plus the Mint's costs.

From there, every dealer adds its own margin. Retail premiums on both coins rise and fall with demand, and the gap between them changes. Some weeks the Eagle is cheaper, some weeks the Buffalo is. That's why comparing current listings beats any rule of thumb.

What you can count on:

• Payment method matters. Most online dealers price bank payments below card payments. At Bullion.com, for example, eCheck and wire are 4% off list, per its user agreement.
• Random-year coins are usually cheaper than a specific current-year coin.
• Proofs aren't bullion. Proof Eagles and Buffalos sold directly by the Mint cost far more than their gold value. See proof vs bullion strikes.

Compare prices at Bullion.com

Resale, IRAs, and recognition

Both coins are made by the US Mint and are among the most familiar gold coins in the American market, so selling either to a reputable dealer is routine.

For IRAs, the IRS collectibles guidance excludes certain coins described in 31 U.S.C. § 5112 and bullion meeting a minimum fineness, held by a bank or approved trustee, from the collectibles rule. Gold Eagles and Buffalos are both commonly offered by IRA providers, but your custodian decides what it will hold, so confirm before you buy. Our IRS-approved gold guide has more detail.

If you sell, the IRS generally treats physical gold as a collectible for capital gains purposes. Our gold reporting rules guide covers what dealers report and what you owe.

Authenticity checks

Both coins are counterfeited, as popular bullion always is. The simplest protection is buying from an established dealer. If you test coins yourself, know the right specs for each one: a real 1 oz Eagle weighs about 33.93 g, while a real 1 oz Buffalo weighs about 31.1 g, and both measure 32.7 mm across. A "Buffalo" that weighs like an Eagle, or the reverse, is a red flag. Our guide to spotting fake gold covers the tests.

Mixing both in one stack

You don't have to choose just one. Because both coins hold exactly one ounce of gold and both are US Mint products, many buyers simply buy whichever is cheaper each time they add to their holdings. Over time that averages out premiums.

If you do mix them, keep them in separate, correctly labeled tubes or capsules. They share a 32.7 mm diameter, but the Buffalo is a touch thicker and the two weigh differently, so labeling avoids confusion when you check weights or sell later.

Which one should you buy?

1. Decide on size. If you want anything smaller than an ounce, the Eagle is the practical choice.
2. Price both at the same dealer. Use the bank-payment price and compare the premium over spot.
3. Pick the cheaper ounce unless you have a real preference for purity or design.
4. Plan storage. Capsules or tubes for either; it matters more for the Buffalo.

Still deciding on coins in general? See our roundup of the best gold coins.