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Shortages of 2011 Buffalo Gold Tribute "Infomercial" Proofs Reported, Panic-Buying Seemingly Inevitable

By Alec Nevalainen, Coinflation.com
Published: April 01, 2011

*** Please Note: This article was an April Fool's joke. To see the current melt value of the Buffalo Gold Tribute Coin, please visit the bottom of this page.

It was only a matter of time. Multiple unreliable email sources have stated anecdotally that the 2011 Buffalo Gold Tribute Proof is currently experiencing a dramatic shortage, and while still unconfirmed, the National Collector's Mint may not be able to meet current demand.

This proof clad layered in 14 mg of pure gold has been riddled with controversy beginning with the National Collector Mint's decision to essentially flip-flop on their pricing. It was originally set at $50, but in a surprising move, decided to issue a special release for only $9.95. While collectors were delighted with the new special-release pricing, many of the authorized purchasers were reportedly less than pleased with the strict and confusing guidelines handed down by the Mint. Many accused the Mint of potentially creating an out-of-control aftermarket with their pricing rules.

In response to potential criticism and to ensure availability, the National Collector's Mint acted with a heavy-hand and implemented firm rules of only 5 proofs per order. Despite purported customer and distributor outrage of the order limit, the Mint has stated publicly on television and on their website that this is a "strict limit".

While this writer may have been critical of the Buffalo Gold Tribute Proof in the past, I must concede that perhaps I was a bit reckless with my rush to judgement. A major part of my folly is that I relied solely on the raw numbers and on this gold calculator which repeatedly told me that 14 milligrams of pure 24 karat gold only equals 64 cents. What the purely "numbers-driven" website calculator doesn't begin to comprehend is the anticipated collector premium and relentless market demand which has yet to develop (and likely never) for this one-of-a-kind collector's piece.

But if we focus only on the metal value of 14 mg of pure 24 karat gold, it will take a gold price exceeding $21,000/ounce to break-even on the 2011 Gold Buffalo Tribute Proof (not including shipping and handling). Based on my exhaustive technical and future trend analysis, this price target should be reached, conservatively, by the year 2016.

As you can see from this really big chart below, an intermediate term-high in 2013 of $3,620/ounce will be established, and yet another intermediate high of $6,740 in 2015. By 2016, the gold chart will morph into the geometrically-rare indefinite hyperbolic parabola and take out my long-term target of $21,400/ounce, thus producing the long-awaited profitability on our 2011 Buffalo Gold Tribute Proof that we've waited for patiently.

Unfortunately, Time May Have Run Out

I spend an inordinate amount of time trying to understand future trends and place my investments appropriately, exercising patience and extreme due diligence. I must confess, in this case, I've failed spectacularly. If you've seen the popular late-night 2011 Buffalo Gold Tribute Proof infomercial, you know it ends with the prescient line, "Avoid disappointment and future regret. Call now!" Well, disappointment and regret is kicking at my door and I'm not getting out of my chair. Fortunately, and much to my surprise, their 7-day price guarantee of $9.95 has inexplicably been extended for several months!

So, in the spirit of due diligence, I emailed the National Collector's Mint to see if the limit of 5 per order was flexible. I received this auto-reply, left unedited below:

I believe the email speaks for itself.

The National Collector's Mint can't even reply to order inquiries in a timely manner, let alone satisfy Tribute Proof demand. The only reasonable conclusion we can reach is that the buying panic has arrived.

Coinflation.com has initiated coverage of this special proof, and issued a ranking of STRONG BUY *. I must say with a light heart, this is my highest buy recommendation that I have given since the inception of Coinflation in 2004. I'm making this recommendation publicly available on my website for free and will update it periodically with Twitter alerts if this exclusive and rare ranking changes between now and the year 2016.

The road to $21,000 gold begins here. I've added the 2011 Buffalo Gold Tribute Proof to the bottom of the gold coin values page where we can track this historic "break-even" opportunity together.

Update #1: Um... you do know what day it is, right?

Update #2: RIGHT?

Update #3: The day is April 1. The first day of April. Friday, April 1, 2011. Also known as April Fool's...

About The Author: Alec Nevalainen publishes several websites to help investors price coins and bullion products including Coinflation.com, GoldCalc.com, GoldGramBars.com, and SilverGramBars.com... except on April Fool's day where his advice is generally considered awful. You can follow Coinflation.com on Twitter at https://twitter.com/coinflation.

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* Please note, the story above is wholly inaccurate. I'm a fool for April.

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