U.S. Mint Issues 24-Carat Gold Coin

There's a new gold coin for investors and collectors, courtesy of the U.S. Mint.

On Monday, the U.S. Mint began offering 24-carat gold coins at a face value of $50. The coins depict an Indian chief on the front side, and a bison on the back side. According to Becky Bailey, a spokeswoman at the Mint, Buffalos are expected to be sold at gold's spot price plus a markup of about 12%. The New York Times reports that 300,000 of the proof version (a mirror-finish version for collectors) will be minted in 2006 and sold initially at a price of $875.

$875 for one gold coin is pricey. In my opinion, you can find better deals through private dealers (and quite possibly, Ebay).