In 2021, the demand for gold remained high and rose 10% for the year, according to the World Gold Council, mainly from a combination of central banks buying gold, and high demand in the jewelry and technology industries. Many investors remained concerned about rising inflation, and the Federal Reserve’s plans to raise interest rates, which at the time was expected to be in 2023.
Demand for gold and other precious metals was offset by a strong dollar and rising equity markets, as well as rising yields on 10-year Treasury bonds. In a low interest rate environment, investors are more likely to invest in gold compared to periods when they can earn higher returns on long-term bonds.
For the year, the price of gold declined by 3.51%, starting off at $1,946.60 and ending at $1,828.60 with an average price of $1,789.89. The metal ranged between a low for the year of $1,683 and a high of $1,957. After the sharp rise in the price of gold from below $1,200 in mid-2018 to as much as $2,089 in mid-2020. Twenty twenty-one was a year in which the metal’s price consolidated.
Demand for United States Mint gold coins was especially strong – the best in 20 years, according to the Mint’s annual report for Fiscal Year 2021. Demand for American Gold Buffalo coins in particular rose 57.1% during that period (which is different from the calendar year) compared to Fiscal Year 2020. This was a year in which sales of U.S. Mint bullion and collector coins was very strong thanks to strong demand from bullion investors and numismatic collectors.
And sales of the 2021 American Buffalo Gold Bullion Coin (Buy on eBay) started off in January at 65,000 and remained strong throughout the year with most months being in the 30-40,000 range. Total year sales for the coin were the highest for the entire history of the series, reaching an impressive 350,500 coins. That was an increase of 45% compared to 2021, which was another strong year and higher than the previous yearly high in 2006 of 337,012 coins.
The 2021-W Proof American Buffalo Gold (Buy on eBay) went on sale with no order limits on May 13 at a debut price of $2,740, and sales for the first three days were 14,254, which was the strongest initial sales for this version of the coin since 2010. The Proof coins continued to be sold in brown leatherette presentation boxes, and the price when the coin sold out was $2,840. Total sales for the year are 16,958 based on the May 22, 2022 cumulative sales report.
2021 Gold Buffalo Specifications
- Bullion Mintage: 350,500
- Proof Mintage: 16,958
- Mint Mark: none (bullion), W (Proof)
- Designer: James Earle Fraser
- Composition: 24 karat (.9999) fine gold
- Weight: 1.0001 troy ounces (31.1035 grams)
- Diameter: 0.116 inches (32.70 mm)