2020 USA Gold Buffalo

I just bought some portfolio insurance in the form of a 2020 USA gold buffalo. The coin is a 1 oz. 24 karat gold American Buffalo coin.

I’ve collected coins for years and really loved the old USA buffalo nickels and ever since the US mint started minting these gold buffalo’s back in 2006, I wanted to get my hands on one.

Every year since 2006, the US Mint has produced these bullion coins. The vast majority are brilliant uncirculated bullion coins, but some are proof quality collector coins.

I just buy the BU coins because I don’t want to pay a premium for the proof coins.

As of May 15, Spot Gold according to Kitco is trading at USD $1742 per oz. But good luck actually getting real physical gold for that price.

Premiums on gold coins used to be about $50 above spot price, but now they’ve risen to about 10%.

The gold buffalo is one of the most popular pure gold bullion coins in the world. The others are the iconic Canadian Maple Leaf, the Australian Kangaroo, the South African Kruggerand and the Austrian Philharmonics.

I only collect Canadian Maples and USA Buffalo’s. And I buy them from Silver Gold Bull because of their price match guarantee: Silver Gold Bull – Your Trusted Bullion Dealer

Many US collectors stack the Gold American Eagles. These are 22 karat gold coins and weigh a little over an ounce because they are made from a copper/silver alloy for strength. I don’t really like them because they have a bronze color that’s unbecoming of a gold coin.

I buy gold because I view it as a kind of portfolio insurance policy. So I pay the premiums each year and build up my gold holdings as a hedge against market crashes and geopolitical instability.

This year has been quite a rocky year with the US-Iran war scare in January, the US China trade spat and the Coronavirus pandemic. Now we may face a deep recession or possibly even a depression.

And through it all gold has performed as expected. In fact gold is the best performing asset class so far this year.

I build my gold holdings the same way I build my stock holdings: slowly, little by little over a long period of time.

This helps protect me from price fluctuations by averaging in over time. Kind of like dollar cost averaging with stocks and ETFs.

Check out my post on investing in physical gold and check out my new You Tube Channel:

Protecting Gold Bullion Coins

These coins can be handled but the coin collector in me demands that I keep my coins in pristine condition. This also helps the resale value.

So I buy coin capsules to keep my gold bullion coins in the best possible condition.

Check out Amazon for some Coin Capsules.

Thanks for reading this post on my 2020 USA Gold Buffalo.

Please note this post contains affiliate links. As an Amazon and Silver Gold Bull affiliate this blog may receive a small commission on sales.