---
title: "Composition and Purity of 1 oz Gold Buffalo Coins - Monex"
site: "Monex Precious Metals"
domain: "https://www.monex.com/"
type: "Knowledge Base Post"
description: "Discover the draw to the 1 oz American Buffalo Gold Coin, minted from 99.99% pure gold since 2006. A prized investment choice for purity and heritage."
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last_updated: "July 11, 2024"
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markdown_url: "https://www.monex.com/knowledge/composition-purity-1-oz-gold-buffalo-coins.md"
---

# Understanding the Rationale: Composition and Purity of 1 oz Gold Buffalo Coins

### The U.S. Mint Had a Dilemma

The U.S. Mint wanted to meet the demand for pure gold coins while maintaining the value of existing [Gold Eagle](/american-eagle-gold-coins-for-sale/) coinage (a 22-karat gold coin). Rightly so, the Mint feared that any alteration or enhancement to the purity of the Gold Eagle series could lead to older issues being perceived as inferior compared to all gold coins. And the Mint itself would gain the unsavory reputation of producing coins with depreciating value.

Although a copper alloy in [gold coins](/buy-gold-coins/) truly benefits strength against wear, it would have been compared to and disparaged as a disadvantage, making them totally undesirable. The U.S. Mint correctly determined they could support both product lines with alternative features and advantages. Thus, the concept of making a second pure gold bullion coin was born.

### How Much Gold Is In a Gold Buffalo Coin?

By the late 20th century, one-ounce coins were most popular with investors. Following suit, the [Gold Buffalo](/american-buffalo-gold-coins-for-sale/) is precisely one ounce of 99.99% pure gold. The pure 24k Gold Buffalo has the same 32.7mm diameter as the U.S. Mint’s 22k 1 oz American Eagle. Both gold bullion coins have seen great purchaser appreciation.

The American Buffalo Gold Coin quickly established itself as one of the world’s top bullion coins. Since its introduction in 2006, the U.S. Mint has minted and distributed approximately 4 million coins, with an average annual distribution of about 217,000. The coin’s popularity reached its peak in 2022, with over 400,000 coins purchased. These figures are a testament to the coin’s lasting appeal and its potential as a sound investment.

### Buy Gold Buffalo Coins

Indeed, the [1 oz American Buffalo Gold Coin](/american-buffalo-gold-coins-for-sale/) is a well-received and well-traded bullion item in the marketplace. The legal tender currency amount of this 1 oz gold coin is just $50, representing a mere token face value amount to make this gold coin an indisputable medium of exchange. Because of the Gold Buffalo’s high purity and legal status, it is frequently purchased for a precious metals IRA. Furthermore, it is a very popular item selected for Brinks depository storage through Monex Deposit Company. This simple process provides a secure and convenient way to store your investment.

Call a Monex account representative to discuss the ins and outs of [IRA investing](/precious-metals-ira/), Brinks storage, and whether the [American Gold Buffalo Coin](/american-buffalo-gold-coins-for-sale/) suits you best. Our knowledgeable staff is ready and willing to answer any questions you may have about investing in gold bullion coins.