With the recent announcement by the mint that the .9999 fine US Buffalo gold coins are again available after an extended hiatus, it is critical to revisit an important press release made by the mint in 2006, after a wave of grading and “first strike” distinction drove the price on these run-of-the-mill bullion coins to unreasonable levels:

U.S. Mint Press Release — Consumer Awareness and Business Guidelines

Regarding the definition of “First Strike”:

“Currently, there is no widely-accepted and standardized numismatic industry definition of “first strike.” Coin dealers and grading services may use this term in varying ways. Some base its use on dates appearing on United States Mint product packaging or packing slips, or on the dates of product releases or ceremonial coin strike events. Consumers should carefully review the following information along with each dealer’s or grading service’s definition of “first strike” when considering a purchase of coins with this designation. The United States Mint has not designated any 2005 or 2006 American Eagle Coins or 2006 American Buffalo Coins as “first strikes,” nor do we track the order in which we mint such coins during their production.”

Regarding the rate of occurrence of MS69 and MS70:

“The United States Mint strives to produce coins of consistently high quality throughout the course of production. Our strict quality controls assure that coins of this caliber are produced from each die set throughout its useful life. Our manufacturing facilities use a die set as long as the quality of resulting coins meets United States Mint standards, and then replace the dies, continually changing sets throughout the production process.”

JK Comment:  If you were so inclined to purchase MS69 or MS70 Buffalos, perhaps you would be best served to purchase Buffalos from USAGOLD-CPM, Inc. at the attractively low premium of 6% over the spot price of gold.  They are available now by contacting our trading desk.  After receiving delivery, you could submit them on your own to one of the primary grading services (PCGS or NGC).  The cost to grade coins is roughly $25/coin plus a membership (varying levels/costs).  If the US Mint’s statement regarding their quality standards is accurate, odds are the majority, if not all of your coins, will come back MS69 or MS70.