One of the requirements of the Presidential $1 Coin Act of the United States of America of 2005 was for the US Mint to produce a 24-karat one-ounce gold bullion coin with a $50 face value — maximum number to be produced was set at 300,000 coins. The coin produced by the US Mint for this purpose is called the American Buffalo and was the very first time the US government minted for public sale pure 24-karat .9999 gold coins; the price of one of these mint coins struck for the year 2007 was $899.95.
The design of the 2007 American Buffalo $50 coin is a modification of the original design by James Earle Fraser for the nickel issued in 1931, commonly called the Indian Head. The front of the coin depicts the head of a Native American chief; the reverse shows a buffalo standing on a mound. There are two differences in the design, both on the reverse or buffalo side of the gold coin:
- The words FIVE CENTS engraved on the mound were changed to $50 1 OZ. .9999 FINE GOLD.
- The words IN GOD WE TRUST were added underneath and to the left of the head of the buffalo.
Also, a W mint mark is seen behind the neck of the Native American chief only on the proof version of the coin. American Buffalo coins were also sold to the public by the US Mint in both Uncirculated and Mint condition.
In July 2008, two examples of the American Buffalo coin were transferred to the Smithsonian for archive and display purposes. The American Buffalo coin was created as competition to the 24-karat gold bullion coins of other nations. However, the US Mint halted sales of these coins on September 26, 2008, because their production facilities could not keep pace with the growing demand due to general economic conditions at that time that pushed investors into buying pure gold.
Reproduction versions of the American Buffalo, including the 2007 coin, have been made over the last few years by several companies that are not affiliated with the US Mint. The coins made by National collector's Mint, described as gold-clad rather than pure-gold, meaning that each coin actually only has a very thin layer of gold covering it, have the word COPY engraved in the braids of the Native American chief's hair. American Coin Treasures has also made reproductions of the American Buffalo coin, but their version puts the word COPY above the words $50 1 OZ. .9999 FINE GOLD on the mound upon which the buffalo stands. Neither one of these reproduction coins is considered legal tender of the United State of America.