The American Buffalo $50 gold coin was released on June 22, 2006, from the United States Mint facility at West Point, New York. This coin was the first 1 Troy Oz. 24-karat gold bullion coin stuck by the Mint. The coin's face value is $50.00 and it was released both as a proof coin for collectors and a bullion coin for investors. The proof coin was released for $800 and the investment coin was publicly sold based on the market price of gold.
HISTORY
The American Buffalo or Gold Buffalo coin was produced under the authority of the Presidential Coin $1 Act of 2005, mandating a one ounce, face value $50 coin, with a mint limit of up to 300,000 coins. The coin was also created as a 24-karat investment bullion coin in order to compete well with other 24-karat bullion coins from foreign markets. Although 24-karat gold coins are softer and less durable for use as legal tender, different types of 24-karat bullion coins constitute about 60% of the gold market worldwide. On July 22, 2006, two of the minted coins were transferred to the Smithsonian for their historical value.
DESIGN
The design of the American Buffalo gold coin is a modified replica of the original Indian Head nickle issued in 1913 and designed by James Earle Fraser. The front or obverse of the coin shows the head of a Native American. Fraser is said to have had several Indian chiefs sit for portrait sketching. The resulting coin was a likeness mix of three or four of these chiefs. The reverse shows the buffalo or American Bison. The model for the buffalo is said to have been an animal named Black Diamond who lived in the New York City Central Park Zoo in the 1910's. The buffalo had to be repeatedly distracted so that the the artist could create a profile sketch of the animal.
Although the gold coin is substantially similar to the original Indian Head nickle, it does have several distinct differences besides its obvious bullion content. On the original nickle, the words FIVE CENTS appear, but on the gold coin it reads $50 1 OZ. .9999 FINE GOLD. Also, on the gold coin, IN GOD WE TRUST appears beneath the buffalo's head. All proof versions of the gold coin carry the mint mark W on the front of the coin behind the Indian's neck.
DISTRIBUTION
Collectors in 2006 were first allowed to purchase the coin on July 22, 2006 with a limit of 10 per household. On September 26, 2008, production of the coin was halted due to excessive demand during the mortgage crisis of 2008.