I am writing this report in the hope of helping other consumers who could quite easily be ripped off by a misleading TV advert. A company called National Collectors Mint has recently been advertising 2012 Buffalo coins on TV at a huge discount of $9.95, down from $50 previously, plus postage and handling.
What consumers need to be careful of is that the gold they claim the coin contains is only 14 mg. A mg is only a 1000th of a gram. There are approximately 31.8 grams to 1 oz, and an oz of gold is worth around $1600 at today's spot price, so 1 gram is 1/31 of an oz, making 1 mg 1/3100 of an oz. Dividing $1600 by 3100 gives the true value of the coin, which is about $0.51.
True buffalo coins can be purchased from reputable companies such as APMEX (American Precious Metals Exchange) and the US Mint. Real American Buffalo coins come in about 4 sizes: 1 oz $50 (stamped "1 oz. 9999 fine gold"), 1/2 oz $25, 1/4 oz $10 and 1/10 oz $5. So it is buyer beware if you are thinking of buying these coins at some ridiculously cheap price. The truth is that even at $9.95, buyers are getting ripped off.
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