PREP Exchanging Gold Eagles for Buffaloes?

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Rucus Sunday

Veteran Member
I'm thinking of trading in my US gold eagles (22 karat) for US gold buffaloes (24 karat). Although gold eagles contain exactly the amount of gold stated, there is additional silver and copper added for wear resistance, and I can't see why I'd not want the "pure" stuff on hand. I'm not interested in "proof" coins or such, just the regular bullion coins. However, not very familiar with how easy it is to find buffaloes, if there are special premiums ($) on them, etc. Any reason why I shouldn't do this?
 
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BlueNewton

Membership Revoked
DON'T do it. Gold Eagles are well-known and widely-accepted coins. Buffalos are less so. You will perhaps be restricting your options later if someone does not receognize the coin.

But also consider that you will receive less than spot price (premium) on the coins you trade in and pay MORE than spot (premium) on the ones you buy. So, you will be losing money just on the "trade" transaction. Plus you will pay extra to the extra 2 K's of gold for which you likely will not receive money later in an "unofficial" transaction.
 
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Dozdoats

On TB every waking moment
If you want one just because it's the first .9999 gold coin minted in the USA, get one.

But IMHO it would be silly to spend more money to swap 22k gold you already have for 24k. It makes NO DIFFERENCE in the marketplace, you still have an ounce of gold in your eagles, plus the silver/copper hardener (eagles actually weigh 1.1 ounce). Buffalos are often pushed by sellers as a "premium" coin at higher prices per ounce of gold, and what you always want when buying PMs is the most metal for the money.

JMHO. YMMV, but I sure wouldn't do it. Heck, I only buy eagles if premiums are lower than on anything else, which is sometimes the case on the fractional eagles. Mostly I get krugs, since the premiums are lower on them. Most metal for the money, remember, and gold is gold IMO.

dd
 
Worrier King

Worrier King

Deceased
BlueNewton said:
DON'T do it. Gold Eagles are well-known and widely-accepted coins. Buffalos are less so. You will perhaps be restricting your options later if someone does not receognize the coin.
Click to expand...

I agree. With Eagles, be they silver or gold, you have a widely recognized coin and it's highly unlikely to be a fake.

I got rid of all my junk silver because I believed the group of people they would appeal to would be a smaller percentile than those who recognize silver eagles.

I would say Eagles are the standard.
 
Milk-maid

Milk-maid

Girls with Guns Member
If I have goods to sell (In a SHTF scenario) I will only take silver and gold coins I easily recognize. Otherwise I might get screwed in the transactions. I think I feel like most people will feel. It will have to be easily identified coins since I'm not a coin dealer. If you were to tell me that it has 2 karats of gold more than the other coins I probably won't believe you. I am the person selling food, wood and fuel to you and your family. Do you see my point of view?

Now if you're getting them just because you're a coin collector, go ahead.
 
Milk-maid

Milk-maid

Girls with Guns Member
While recently visiting my mom back home, I took her to a local coin shop to get some Silver Eagles.

The guy behind the counter did two things wrong;

#1 He was handling all the silver coins with his dirty paws. It showed on the coins too; they were all tarnished.

#2 He wouldn't sell her Silver Eagles and kept pushing just plain silver rounds. One of them had a cartoon character on it, another had a impression of the Hindenburg on the face. Who can take these kinds of coins seriously? If SHTF, I think she wants coins that people will accept as true money and not have to figure out it's worth, or if it is pure silver.

As a result, my mother went elsewhere. She knew enough from the years with my dad, to know she didn't want what he was selling to her. JMHO

MM
 
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Rucus Sunday

Veteran Member
OK, ye have convinced me :D The main reason I've bought eagles is because they are widely recognized. Maybe buffaloes will become that someday, but they aren't now. Guess I was getting gold fever, thanks for keeping me on the straight and narrow.
 
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tanstaafl

Has No Life - Lives on TB
Rucus Sunday - If you really like taking out gold coins to just admire them, then go ahead and get at least one Gold Buffalo.

I have an Australian one troy ounce of .9999 gold and it's absolutely gorgeous to see how the light reflects off the different parts. The reverse proof 2006-W Silver Eagle is similarly gorgeous. They both look like works of art instead of the run-of-the-mill gold and silver coins.

But to trade? Don't bother unless you have money you are aching to give to a coin dealer (for the much higher premium on the Gold Buffalo). I personally just buy gold Krugerrands for my tradable gold, since they are probably THE most recognizable gold coin in the world (you know, in case bugging out involves another continent and a foreign language which you don't speak).

I suggest buying some books and hardware (scales, coin gauges, etc.) for anyone planning to be a "seller" in a trade (that is, the one accepting someone else's gold and silver in return for something you have). If you're a "buyer" then you're pretty much at the mercy of finding a "seller" willing to take whatever it is you have to trade no matter what you personally think about your stuff.
 
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tanstaafl

Has No Life - Lives on TB
Dozdoats - Thanks for that link! I like those so much better than what I already have that I just ordered a complete set (except for the Isle of Man Noble 1 oz, which I've never even heard of). From the web site's explanation, they sound elegantly simple yet completely functional. Hopefully flat surfaces won't be hard to come by in a post-SHTF world (I guess I need to buy a small level just for the Fisch set). ;)
 
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