Chinese Panda Coins

Spring Festival sparks a 'gold rush' in China

2012-01-30T23:15:00.000-08:00

The China Daily reports a 50% increase in gold sales at stores during Chinese New Year this year.

"People seem crazy about gold, snatching it up more like a 'cheap cabbage' than such a precious metal,"..

BEIJING - A "gold rush" swept through China during the week-long Lunar New Year holiday thisyear, with demand for precious metals and jewelry surging since the Year of the Dragon began.

Sales of gold, silver and jewelry rose 57.6 percent during the week-long holiday at Caibai, oneof Beijing's best-known gold retailers, according to data released by the Ministry of Commerce(MOC) on Saturday.

Other jewelry stores across the country also saw sales boom during the period, with customersfavoring New Year-themed gold bars, gold ingots and other types of Dragon-themed jewelries.

"Long treasured by Chinese, gold is no longer owned only by a privileged few, but has becomea new investment channel open to all," said Guan Qiang, assistant manager at Caibai.

The Spring Festival gives people a chance to preserve and present gold as gifts, offeringhopes that it will increase in value and not be impacted by inflation, Guan said.

During the week-long holiday, which lasted from January 22 to 28, the sales volume in Caibaiand Guohua, another of Beijing's top gold retailers, reached about 600 million yuan ($95.28million).

The figure showed a 49.7-percent increase over that of last year's Spring Festival, said areport released by the Beijing Municipal Commission of Commerce.

Caibai began selling gold bars as investment items during the 2008 Beijing Olympic Games, butthe trend of buying gold or silver bars during the Spring Festival has really taken off in the pasttwo years, Guan said.

For Guan and his colleagues, the Spring Festival rush was an exciting but exhaustingexperience, as customers flooded the store and surprised clerks with their purchasing enthusiasm.

"With customers crowding and rushing in, we did not even have time to eat and drink," said asales clerk at the gold bar counter surnamed Li.

She said each shop assistant had received hundreds of customers per day and wrote severaltimes more orders than on ordinary days.

"You can hardly even see the gold bars, necklaces and pendants in the display case. People seem crazy about gold, snatching it up more like a 'cheap cabbage' than such a preciousmetal," said Beijing resident Miao Miao.

"You have to quickly decide whether to make a purchase, or it will be taken away by others."

Link to full article

Chinese Coin Dealers are Quietly Buying Again

2012-01-18T23:36:00.000-08:00

Chinese coin dealers were required to prepay for 2012 Panda and Lunar Dragon coins, locking up a big chunk of cash in December. Now that Pandas and Dragons have been delivered and are being sold to the public, their cash situation has improved. Dealer end-of-year liquidations have abated and Chinese dealers are quietly buying again.

Gold is still much in demand in China. As their cash positions improves, Savvy China dealers will be looking to take advantage of lower prices behind the scenes. They will not chase prices and bid up auctions just yet, but buy they will...

We feel that Chinese coin prices have largely stabilized and some coins are beginning to recover. Now that gold is over $1650, China expected to ease rates, and more QE on the horizon to bail out Europe, those looking to pick-up bargains may want to act soon.

China Private Gold Savings

2012-01-12T10:49:00.000-08:00

The forces behind the Chinese coin market.....

and....

China’s Gold Imports From Hong Kong Climb to Record on Investment Demand

By Bloomberg News
January 11, 2012 4:50 AM EST

China’s gold imports from Hong Kong surged to a record as consumers bought the metal before the Lunar New Year this month and investors sought to hedge against financial turmoil. Bullion rallied to a four-week high.

Mainland China bought 102,779 kilograms from Hong Kong in November, up from 86,299 kilograms in October, according to the Census and Statistics Department of the Hong Kong government. China doesn’t publish gold trade data.

Demand for gold is climbing in China as investors seek to protect their wealth against slumping property prices and equity markets amid an inflation rate above 4 percent. The nation overtook India in the third quarter as the largest gold jewelry market, according to the World Gold Council. The country is also the biggest producer. Bullion rose as much as 0.9 percent to $1,647.45 an ounce today, the highest since Dec. 13.

“China’s appetite for gold is very strong and growing,” said Tao Jinfeng, chief investment consultant at Haitong Futures Co., China’s largest brokerage by registered capital. “The few months before the Lunar New Year is typically the peak demand period for Chinese people.” The weeklong holiday begins Jan. 23. more...

http://mobile.bloomberg.com/news/2012-01-11/china-s-gold-imports-from-hong-kong-climb-to-record-on-investment-demand?category=%2F

Chinese Central Banker Declares That 'Gold Is The Only Safe Haven Left'

2012-01-11T14:35:00.000-08:00

Read more: http://www.businessinsider.com/zhang-jianjua-gold-safe-haven-2011-12#ixzz1jBxBLEZd

China is making an even bigger move toward gold in reaction to money printing around the world (via @JamesGRickards).

People's Bank of China official Zhang Jianhua declared yesterday: "No asset is safe now. The only choice to hedge risks is to hold hard currency - gold."

Zhang, the bank's research director, recommended buying the dips: "The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation."

Buying Panda Coins on Ebay

2011-11-13T16:53:00.001-08:00

Chinese Pandas have very low mintages compared to US modern coins, and they are dispersed widely around the the world. Ebay is one of the few places where a large number of Pandas are available for sale 24/7, worldwide.

Ebay and its subsidiary Paypal have significant strengths and weaknesses that are important for anyone trading Chinese coins to understand.

Ebay Strengths

Worldwide market with many coins listed
An large pool of active buyers and sellers of Chinese coins
Fees that are lower than most major coin auction houses like Heritage and Bowers
Paypal has excellent buyer and seller protections against fraud

Ebay Weaknesses

The seller rating system is not sophisticated and doesn't communicate a sellers character.
Unknowledgeable sellers and expert sellers are difficult to distinguish
It can be difficult to identify problem coins vai photos alone.
Scammers occasionally sneak by ebay screening systems, especially in China, and collecting on buyer protections can be a hassle.
Ebay and Paypal fees are still quite high compared to face-to-face deals.

How to use Ebay and Paypal for buying coins

Ebay is excellent for connecting buyers and sellers of chinese coins. Finding coins to buy and comparing prices has never been easier.

Paypal provides fraud protection for both buyers and sellers. If a seller's coin is not as advertised, or not delivered. a buyer can get refunded by Paypal if the seller is uncooperative. Similarly, if a buyer doesnt pay, files a fraudulent chargeback, or tries to use a stolen credit card, Paypal will cover the loss. This very valuable feature allows both parties to have the confidence to make high value transactions online.

Nevertheless, be cautions of sellers like these:

A history of selling $2 trinkets and then suddenly start selling $2000 coins
Gold coins selling under spot
Photos that are "stock" or copied from another seller
Photos that are not of the exact coin
Blurry or dark photos
Prices that are way out of line from other sellers or the price trend.

Although you are protected by Paypal, it is still a hassle to have to wait for disputes to be resolved.

We also recommend buying Pandas certified by PCGS or NGC only, unless you are very knowledgeable and can identify fakes, or you are working with a seller who you trust to identify fakes for you. This will be very important when it comes time to sell.

Ebay and Paypal Fees

The seller pays all Ebay and Paypal fees.

Ebay Powerseller fees vary from 11% for items under $50 and drop to about 2.3% ($114) for a $5000 fixed price item. New ebay sellers will pay 20% more ($137 on $5000) until they are established.

Paypal fees depend on monthly volume. About 2.9% for low volume sellers scaling to 1.9% for those processing more than $100K per month. Typically, its about $110 on a $5000 coin.

Overall, the seller has to carry at least 5% in fees on a sales over $1000. In a business where margins are often 5% or less, this is a huge tax. As a business necessity, very often this fee is embedded in the listed price. It effectively inserts 5% into the bid/ask spread that buyer will have to pay.

Clearly, the value of Ebay and Paypal services are diminished once buyer and seller know and trust each other. Ebay and Paypal fail to consider trusted party transactions in their current pricing structure. As a result, many sales go "offline" in order for reasonable deals to be made.

How to save 5%

If you already have a good relationship with a seller, you may want to ask the seller if he has any coins he can sell "off-line" with a payment by check in exchange for a price discount of 4-5% off a comparable Ebay listed item. The seller will net the same amount and you save a few hundred dollars!

It is against Ebay policy to negotiate off-line sales through the Ebay message system, or to renegotiate items already purchased through Ebay. However Ebay does not have jurisdiction over sales conducted entirely outside of Ebay. So it is best to use the sellers direct email address or a phone call to make this kind of deal. Ask if he has any other coins like the one you saw on Ebay, but at a lower price.

Note that you will not have the Ebay/Paypal buyer protections, so be sure you trust the seller to deal fairly.

Until Ebay and Paypal adjust fees to better match the needs of the coin market, this is a good way to pay less for good coins from reputable sellers.

Auctions

Many of the best coins will be listed at a fixed price, waiting for a discerning collector to come along. However, sometimes Pandas come up or sale on Ebay as an auction rather than at a fixed price. There are three reasons why a seller would use an aution.

the market is hot or the coin is very rare and he hopes that his coin will be bid higher than previous sales
he doesn't know what the coin is worth and lets the auction decide
he doesn't care to maximize his selling price and just wants to liquidate quickly

Mass marketers and pawn shops sometimes dump coins onto ebay to raise cash or take a quick profit. If too many are sold at once, or the auction ends at 3:00am, there are not enough cash-ready buyers online to bid for everything. High-end auctioneers like Heritage manage auctions to maximize prices, but Ebay is unmanaged. This can be a short term buying opportunity for savvy buyers.

Sometimes coins are underbid because the coin has problems or the seller is unkown to collectors. Sellers who "dont know" or "dont care" about pandas, may not be able or willing to properly disclose issues and stand behind their coins.

Auctions can be fun and sometimes good bargains can be found. However, a relationship with a good dealer can help you avoid costly mistakes.

Panda Coin Buying Opportunity

2011-11-06T01:31:00.000-07:00

Like any market, the Panda coin market goes through short term cycles. After very powerful moves in spring and summer of 2011, it looks like this fall is a time of consolidation. With a pull-back in gold from $1950 down to the 1600's, many newer entrants in the market are now hesitating. Some are selling. Did the market peak? Will pandas go down from here?

Whatever the reasons, there are now many excellent quality Pandas available on the market, and overheated prices have pulled back. Key dates and rarities are still quite strong and going higher, but many excellent coins are now re-appearing at good prices.

The old-timers and market savvy collectors see pull-backs as a prime opportunity to find good deals. Major dealers are happily re-stocking at bargain prices. This is the time to buy!

Chinese dealers are buying in full force, raiding US inventories for any gold panda from 1990 to 2003. Certain dates are targeted for accumulation, including 2000 to 2003 gold panda sets. They know to strike when the coins are available, and they are expecting renewed Chinese market strength in December and January.

Gold fundamentals are stronger than ever. We will see $2000 gold soon. The European debt crises illustrates how deep the economic rot has become worldwide. Chinese investors are looking to store wealth outside of the weakening real-estate sector and outside of paper currencies. This trend will continue.

Key coins to watch:

1989 BU Gold, all sizes (maybe not as common as we thought!)
1989-P proofs
1990-P proofs
1992 and 1993 still in thin supply
2000 frosted (1oz and 1/2 already pushing $3000), all sizes
All 1/2oz Pandas

High Flyers - look for deals that wont last:

1998 small and large dates
1999 all types still strong
1995 - ready to catch up to 1998?
91, 92, 93 and 94 proof sets are still being acquired by strong hands

Global Gold Demand

2011-10-26T18:55:00.000-07:00

The graphic below shows that physical gold trading in the US is just a quite backwater. China and India are doing the buying, hand-over-fist.

Chinese gold coins were sold only to foreigners for decades, but now they are being brought back home by eager Chinese buyers. As the China real estate market falters, wealthy Chinese are seeking new places to preserve wealth. That place is gold!

The US panda coin market has been slow in October, but Chinese dealers are buying from US dealers on the weakness. Prices for many Pandas are decoupling from spot gold, and did not decline appreciably despite a $300 drop in gold. Prices on many pandas may not be this low again, and will likely surge with the next run-up in gold.

This represents a once-in-a-lifetime opportunity. Gold Pandas will be sold to Chinese investors. Will they buy the coins from you or someone else?

Hong Kong Coin Show

2011-10-17T02:02:00.000-07:00

In August, I attended the 2011 Hong Kong International Coin Convention. The Hong Kong show is the world's #1 show for Chinese Modern coins, and I wanted to get the pulse of the market in Asia.

Compared to the major coin shows in the US, the HK show is physically small, occupying a little more than a ballroom at the Holiday Inn in Kowloon. Surprisingly, the show floor is about 70% occupied with watch dealers - a throwback to when coin and watch dealers needed to join forces to draw enough visitors. However, now it appears that the fairly small contingent of dealers in Chinese coins attracts the majority of traffic.

Attendance at the show was overwhelming. The bourse floor was so packed with people, that you couldn't walk the aisle or see the dealer tables without pushing your way between bodies. US shows feel like a leisurely stroll in a spacious mall by comparison.

Just prior to the first day opening, a large contingent of dealers from the Chinese mainland descended on the tables of the major US and European dealers, each elbowing their way into position to try to be the first in line to buy. It was very clear that these wholesale buyers were very hungry for any new material they could find to feed what must be very strong demand in Shanghai and Beijing.

As I have mentioned previously in this blog, most Pandas and many other Chinese modern coins were exported to the west up until about 2001. Therefore, most of the desirable coins are outside of China and are now making their way home.

For coin dealers, the first day of the show could be described as a feeding frenzy. Buying was fast and furious, and there was little or no negotiation for the most desired coins. To say that money was being thrown at coins would not be an overstatement. At times, paper money was actually thrown on the counter to try to close a deal.

Before and after the show, there were coin auctions in nearby hotels held by Baldwin, Spectrum, and Champion. The Champion auction was focused entirely on modern Chinese coins and had the most high-end coins overall.

The next show will take place in early December.

Summer Slowdown Buying Opportunity for Pandas

2011-07-22T10:37:00.000-07:00

The first half of 2011 was an extremely intense period for for Chinese Pandas and Chinese modern coins. Beginning with the very strong Hong Kong Champion Auction in December 2010 through June, extremely strong buying from China, US, and Europe drained dealer stocks and drove prices skyward.

In July were are finally getting a rest. The summer doldrums that are typical in coin and precious metals markets have set in, allowing dealers to catch-up and re-stock. The relentless rise in prices has taken a pause, presenting an opportunity to buy many of the best coins while they are still available. We fully expect Chinese buying to resume in earnest this fall, accelerated by what may also be a rising gold bullion price.

Strong hands are now focused on buying some previously over-looked coins. Including:

1/2oz Gold Pandas from 1990-2007
Gold Panda Proofs 1986-1994

The half ounce pandas have some of the overall lowest mintages of the series, but have been overlook in favor of the big 1oz coins. However, with most 1oz Pandas now trading over $2000 (and many at $3000+), the half ounce looks much more affordable. Mid 1990's dates are already scarce, but early 2000's are still possible to find, but are going fast.

The lowest mintage gold proofs, 1995 and 1996 are trading in 5 figures and are out of reach of many, but the earlier proofs, especially 1986-1991 are still reasonable. Mintages over this period were 10,000 to 3,500 coins, but prices do not yet fully reflect this scarcity.

Other current market trends include:

Very strong buying of MS69 and PR69 coins. The premium for 69 over 68 and raw coins has expanded.
Silver pandas of all types have been very strong despite the pull-back in silver bullion prices.

Silver panda mintages are much lower then US Eagles and other mainstream coins, and silver is more afordable to collectors worldwide. MS69 graded silver pandas and certified silver pandas in general are commanding a premium as buyers seek out quality and authenticity. As silver resumes its upward climb past $50, we expect to see silver pandas out-perform the metal.

We see a few pandas that remain "sleepers" with prices that do not reflect the scarcity. These include 1991, 1994, and 1997 gold 1oz, 1986-1989 proofs, as well as 2002, 2003, and 2004 of all sizes. Value seekers may want to consider these for the longer term.

China buying up world's gold bars and coins

2011-05-26T22:03:00.000-07:00

Below is a link to mainstream article that notes the massive Chinese buying of gold.

This is the force driving the rapid price increase of gold Pandas and other Chinese gold and silver coins.

http://money.cnn.com/2011/05/20/markets/china_gold/index.htm

CNN Money.com
Ken Sweet, contributing writer, On Friday May 20, 2011, 3:47 pm EDT

China edged out India to become the world's largest buyer of investment-grade gold products, according to a World Gold Council report.

In the first quarter, Chinese consumers purchased 90.9 metric tonnes in gold bars and coins, valued at $4.1 billion.

That's more than double the amount Chinese consumers were buying year ago. It's also more than the 85.9 metric tonnes bought by Indian consumers during the first three months of the year.

"Persistent high inflation levels in [both countries] continued to motivate investment in gold," the organization's analysts wrote in a research report.

India still dominates the gold jewelry market, buying 206.2 metric tonnes in the first quarter, compared with China's 142.9 metric tonnes.

China and India account for nearly half of all gold products sold during the first quarter, said the World Gold Council.

"You have a growing middle class that has increasing disposable income that is also concerned about upward inflation pressures," said Carlos Sanchez, a precious metals analyst with independent metals research firm CPM Group.

Sanchez expects China's market to continue to grow noticeably for the foreseeable future as the country's economy expands.

Massive Chinese Gold Buying

2011-03-07T15:59:00.000-08:00

3/7/2011

The buying frenzy reached a peak in December at the Champion Auction in Hong Kong. Low Mintage modern Chinese coins sold at prices well above expectations. Anything with a mintage less than 2000 saw breathtaking prices. Buyers were particularly eager to bid on Chinese commemoratives, with some 1oz gold coins selling at more then $10,ooo each. 1995 and 1996 Panda proofs were well bid in the December auction, but most Pandas were out of the spotlight.

The serious Panda buying took off in January and February. Gold BU pandas with 1990's dates were purchased in large quantity by Chinese buyers, draining dealer stocks. Coins such as 1996 and 1991 gold pandas that were readily available last summer are now difficult to find.

The list of "sold-out" dates now includes these 1oz Gold Pandas:

1991

1992

1993

1995

1996

1998

1999 serif and small date

2000 Mirror

2001-D

Most Gold Panda Coin Show Medals

The following are still available, but perhaps not for long:

1990

1994

1997

1999 large date

2000 frosted

2002

2003

Half-ounce pandas are even more scarce for all 1990's dates.

Silver Pandas are also seeing heavy buying, pushing premiums up to $20 - $80 over spot for many dates

Gold Panda Coin Prices Show Continued Strength

2010-11-02T16:58:00.000-07:00

Gold Panda coin prices have continued to increase since my last post in September. Demand from investors and collectors in China is reaching a fever pitch, with the most rare coins selling for very impressive prices to Chinese buyers.

Chinese coins with mintage 1000 or less are going for record prices (if you can find then at all). The "2nd tier" coins with mintages below 2500, are moving up rapidly as collectors seek to obtain these coins while there are still available.

Off the Charts

These coins have had major moves and are nearly impossible to find. The $5000-$12000 prices on these coins is 2-3 times what it was a year ago!

1992-P Gold Panda Proofs
1995 Gold Panda Proofs
1996 Gold Panda Proofs
1994-96 Gold Unicorn Proofs

Rising Rapidly

Certain date variety Pandas are also skyrocketing due to an apparent shortage of available coins. No mintage data is available for specific varieties, but the market is telling us which coins are the most rare. Expect to pay $3000+ for the 1oz coin of the following types!

1999 Gold Panda Large Date with Serif (all sizes)
1998 Gold Panda Large Date (all sizes)
2000 Mirror (all sizes)
2001-D (all sizes)

Near Term Potential

Looking ahead, price pressure is building on the following coins:

1991 Gold Panda Proof sets
1990 Gold Panda Proof sets
1998 Gold Panda Small Date (all sizes)
1995 Gold Panda (all sizes)

The 1oz coins for these may still be available in the $2000-$3000 range, but possibly not for long.

Small Panda Coins

Although I have not covered them in detail here, many of the fractional Pandas (1/2oz and lower) have risen in substantially price as Chinese collectors rush to assemble complete date sets. Often the 1/2oz or 1/4oz coin is the most rare coin in the set. Example dates are 1994, 1995, 1998.

Low Mintage Gold Panda Coin Varieties Heat up

2010-09-13T17:32:00.000-07:00

The Chinese gold Panda coin market has been heating up over the past several months. Low mintage and low population varieties have disappeared from dealer inventories as prices have soared.

As recently as one year ago, nearly every date and variety of gold panda was readily available on ebay and major dealers. Today, the list of "unobtainable" coins is growing, partially as a result of strong demand from China. Strong Chinese demand for full dates sets (all sizes of the coin for a given date) has put a lot of pressure on the more scarce coins in each set, especially the fractional sizes. All Panda coins with mintage or population of less than 2000 have seen major price increases, and my guess is that anything in the 2000-5000 range is next.

Difficult (and expensive) gold panda coins now include:

1995 all types and sizes
1998 large date, all sizes
1998 small date fractionals (1/2, 1/4, 1/10, 1/20)
2000 mirror
Coin show panda medals with low mintage under 1000
1992, 1995, 1996 proofs
All bimetal pandas
Most fractional size pandas from the 1990's

Some candidates to soon move into scarcity may be:

1991-P Proofs
1990-P Proofs
1999 large date with serif
2002 pandas
2003 pandas
2004 panda
1997 small date
Other 1990's date types with lowest population
Panda Coin show medals with mintage over 1000

1982 and 1983 Pandas have remained stable, but the coveted MS69 grade has become very tough to come by for these dates. PCGS and NGC are not kind to the early date pandas, so top grade prices will continue to reflect this. MS68 premiums are strong as a result of very high MS69 prices.

Comprehensive Guide Book to Panda Coins

2010-05-27T15:25:00.000-07:00

Exciting news for Panda coin collectors! We finally have a comprehensive English language guide book which details all of the coins in the series.

The just published Gold and Silver Panda Coin Buyer's Guide by Peter Anthony is a comprehensive 208 page reference book that is a must-have for any serious Panda collector. The guide covers every Panda coin issued by the China Mint from 1982 until today. Full color images are provided for nearly every coin, as well as valuable background information and mintage data. We highly recommend this excellent new book.

Of great interest to collectors, Mr. Anthony has published the first estimates of current surviving Panda coin populations. Over the years, many Panda coins have be mishandled, used for jewelry, and melted for scrap. This has resulted in some surprisingly small remaining populations for many coins in the series. This information is sure to change the landscape of the Panda coin market as many common coins are suddenly appear to be a lot less common!

Gold and Silver Panda Coin Buyer's Guide is available now at Rare Panda Coins as well as Amazon.com

Chinese Citizens are Rushing into Gold

2010-05-20T17:24:00.001-07:00

Chinese citizens are rushing into gold, as shown in this news report of precious metals shops packed with buyers. The Chinese middle class of 300 million people is moving to protect its savings.

http://www.youtube.com/watch?v=dwWso5m2f5c&playnext_from=TL&videos=JgC6Zjnohtc

The Chinese government is buying and mining gold, and it is encouraging its citizens to put savings into gold as well. History shows that nations with the most gold have the most power. What are you doing to protect yourself from the currency crisis?

The Panda coin series fills only a small portion of Chinese gold demand, and mintages of many dates are very low. Some of the more scarce dates are disappearing into strong hands. These gold coins may become the Chinese equivalent of the US "Double Eagle" - desired by collectors and investors for generations.

Red Spots on Gold Panda Coins

2009-10-09T13:19:00.000-07:00

One of the most frequently asked questions is: Does the Panda have any red spots?

The red spots that sometimes appear on gold pandas and other gold coins are the result of very small amounts on impurities on or near the surface of the coin that oxidize over time. Although Panda gold coins are 99.9% pure gold, the 0.1% is responsible for the red spots. These impurities can get on the coin from the die or other tooling used to make the coins, or there could be impurities in the gold that gather near the surface. The impurities may not be visible when the coins leave the mint, but exposure to oxygen over time can make the the impurities oxidize and change color.

Are Red Spots Bad?

Red spots are the subject of some debate among collectors and coin grading experts. The major coin grading services like PCGS and NGC consider the spots to be "toning" which is generally not a major factor in determining the grade of a coin. The spots are not considered a defect or damage. Therefore, the measles-like coin at left could grade MS69.

Many Panda collectors, however, try to avoid coins with spots like, well, like the plague! Spots are present on coins still in the mint plastic, especially after they are several years old. To make matters worse, they can be hard to see through older mint plastic sleeves which are not adequate to protect the coins over years. The only way to avoid the spots is to look at the coin carefully before you buy it, and then make sure it stays in a sealed holder away from heat and humidity.

When buying online, make sure listing includes pictures that are clear enough to show any spots, and don't be afraid to ask the seller or dealer if there are spots on the coin. Mint sealed coins often have spots and it can be hard to see through the plastic, so we recommend buying certified coins where the condition of the coin is clearly visible through the optical quality plastic holder.

Chinese TV Promotes Gold and Silver Ownership

2009-09-05T23:47:00.000-07:00

Chinese promotion of gold as an investment can only help to increase demand for relatively scarce Gold Panda Coins.

Author: Lawrence Williams
Posted: Thursday , 03 Sep 2009

LONDON - We are indebted again to Paul Mylchreest's Thunder Road Report for news that will bring big smiles to gold and silver investors everywhere. Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. If 1.3 billion Chinese citizens start buying gold and silver, even in tiny quantities, imagine what that will do to the market!

The report notes that China's Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying, "China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in."

What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold-related investments are said to be soaring in popularity.

Hong Kong is pulling all its physical gold holdings from London

2009-09-05T23:32:00.000-07:00

Recent news items suggest that China is making moves to reposition physical gold within its economic system.

HONG KONG (MarketWatch) -- Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city's airport, in a move that won praise from local traders Thursday.

The facility, industry professionals said, would support Hong Kong's emergence as a Swiss-style trading hub for bullion and would lessen London's status as a key settlement-and-storage center.

"Having a central government-sponsored vault would create a situation where you could conceivably look at Hong Kong as being a hub, where metal could be traded for the region," said Sunil Kashyap, managing director at Scotia Capital in Hong Kong, adding that the facility was the first with official government backing in the region.

The Hong Kong Monetary Authority, which functions as the territory's unofficial central bank, will transfer its gold reserves stored in other vaults to the depository later this year, the Hong Kong government said in an earlier statement.

Chinese Gold Panda Proof Coins: Fact vs Hype

2009-07-30T17:11:00.000-07:00

When browsing the web for modern gold coins, you will likely encounter sellers who proclaim their offerings to have qualities such as "Mint", "Brilliant", or "Proof". These terms are often thrown around improperly and can lead to a bit of confusion. Here are some clarifications with regard to the Chinese Panda coin series.

A "Mint", "Mint-state", or "MS" coin is simply a coin that is uncirculated and preserved in the condition it was in when it left the mint. This is no assurance that the coin is shiny and clean. Mint State coins may have been stored in bags with other coins where they received "bag-mark" scratches from other coins. An issuing mint may or may not have good quality controls, and dies can become worn and damaged. The standard coin grading scale reserves the grades MS60-MS70 for these coins. MS60 can be beat-up looking and MS70 is essentially perfection.

"Brilliant Uncirculated" or "BU" is a standard issue coin that is in Mint State. This is usually the mass-produced version of a coin. This term is often used to distinguish a coin from "Proof" versions of the same coin that may have been issued.

"Proof" coins are specially produced coins that are usually made with highly polished dies and struck multiple times. Quality control is generally higher and the coins are typically sold with collectors in mind. Contrary to many offerings on the web, a proof coin is not just a clean shiny example of a BU coin!

The Chinese Panda coins are very attractive coins which often have a mirror finish contrasted with frosted elements, however, the majority of the Pandas are not proofs. In fact, the Pandas are so nice looking, that most of the genuine proof issues have a "P" mark on the obverse to identify it as the proof version.

1986-P Proof

Among the 1oz Gold Pandas, the following are the only proofs issued:

1oz Gold Panda Proofs
Date and P mark	Official Mintage Limit
1986-P	10,000
1987-P	10,000
1988-P	8,000
1989-P	9,000
1990-P	5,000
1991-P	3,500
1992-P	2,000
1995	2,000
1996	1,500

From 1986-1996 proof sets were issued. except for 1993 and 1994, these were 5-coin sets with a 1oz and fractionals 1/2, 1/4, 1/10, and 1/20 ounce. In 1993 and 1994, the largest coin in the set was a bimetallic gold-silver 50Y coin - no 1oz was issued.

1986-1992 the proof coins have the exact same design as the BU coin, except for the P mark on the Panda side of the proof versions. If there is no "P", its not a proof. In 1995 and 1996, the proof have a different design than the BU coins, making them easy to distiguish.

In addition to the 1oz and fractional proofs, there are jumbo size Pandas in 5oz, 12oz, and 1kg sizes that were issued as proofs in many years. I have not covered those here, but you can browse a good Chinese coin database at http://china-mint.info for more info.

So be advised that there are many mis-labelled, improperly advertised, and even incorrectly certified proof pandas. I have seen NGC certified PF proof Pandas from years in which proofs were not issued. PCGS has not made the same mistake to my knowledge.

The Panda proofs are especially attractive to collectors dues to their low mintages as well as their beauty. All of the proofs have mintages of 10,000 or less. With the 1996 being the rarest at only 1500 coins!

2009 Panda Coin Mintage Limits Reached

2009-04-16T10:21:00.000-07:00

The word from the coin dealer network is that 2009 mintage limits of the gold and silver pandas coins have been reached. Each year, China Gold Coin Inc (CGCI) designates a limit on how many Panda coins will be produced and sold for that mintage year. Due to the strong demand from the market, as of April 2009 those limits have been reached.

This means that no more 2009 Pandas will be coming into the market from CGCI. Dealer stock is the only remaining source, but as that is consumed, price premiums can be expected to rise.

Published 2009 Mintage Limits
1oz Gold: 160,000
1/2oz Gold: 60,000
1/4oz Gold: 60,000
1/10oz Gold: 100,000
1/20oz Gold: 100,000

1oz Silver: 600,000

1990's Gold Pandas - Low Mintage Sleepers

2008-08-28T17:52:00.000-07:00

A recent comment raised a subject that I have been meaning to discuss for a while: I believe that the real surviving mintages for many of the Gold Panda coins of the 1990's is quite low.

The 1990's was a time of very low gold demand. Gold was declining in price and few collectors or investors were buying. Official mint sales limits were not met, and dealers could not sell the inventory of coins they had purchased.

Recent information published by the official Chinese Panda distributor has shown that the number of coins actually shipped by the mint at that time was much lower than what was officially published at the time. Ranging to as low as 4,000 coins for some issues.

I have heard from long time dealers that sales were so poor in those days, that many dealers were forced to liquidate thousands of unsold gold pandas by selling them to refiners to be melted down. It is unkown how many gold panda coins were lost. As one who watches the sales on ebay and other areas, I have observed that the mid-1990's Pandas are less common.

As investors and collectors worldwide move to gold and numismatics as a store of wealth against depreciating currencies, these coins are likely to emerge as unexpected rarities.

Have you got your 1990's Pandas?

Table of 1990s mintages click here

Bimetallic Pandas

2008-01-16T13:27:00.000-08:00

There has been much attention lately to very low mintage pandas, with prices moving up rapidly. These would include the 1998 50Y Gold 1/2oz ($2500), the 1995 100Y Gold Proof ($6277), platinum pandas, and the 5oz, 12oz and kilogram Pandas. All of these have mintages less than 2500 peices, but a large and growing collector base whos number well exceed the mintage.

When there are more collectors than coins, prices move up. Typically, as the collector base grows, coins with populations near the supply/demand threshold will suddenly move up.

The bimetallic pandas represent a very attractive and collectible subset of the Panda series with very low mintages. Although already in short supply, prices have not yet reached the levels of the hot coins mentioned above. I believe the bimetallics will eventually meet and exceed these levels.

The bimetallic Pandas have a gold center with a silver outer ring, and are thinner than other pandas, but also wider in diameter, making them appear large for the bullion content. They were issued from 1990 through 1996, often in sets, with values from 10Y to 50

Denomination	Gold	Silver
10Y	1/10oz	1/28oz
25Y	1/4oz	1/8oz
50Y	1/2oz	1/5oz
500Y	5oz	2oz

In 1990 and 1991 bimetallic medals (no face value) were issued along with the coin and included in the mint set.

Official Mintage Limits:

Year	Denom.	Mintage
1990	50Y	2000
1990	1/2oz+1/5oz	2000
1991	25Y	10000
1991	1/4oz+1/8oz	2000
1992	10Y	2000
1993	25Y	2500
1994	10Y	3000
1994	25Y	2500
1995	10Y	2000
1995	25Y	2000
1995	50Y	2000
1995	500Y	199
1996	10Y	8000
1996	25Y	2500
1996	50Y	2500
1996	500Y	199
1997	10Y	2800
1997	25Y	2800
1997	50Y	2800
1997	500Y	199

Actual Mintages

The actual mintages of mid-1990s gold pandas has recently been acknowledged to be much lower than the published maximums. No actual figures have been published for the bimetallic, but given the time period, it seems certainly possible that actuals could be lower.

As a side note, based on apparent availability in the market today, the 1997 set seems to be more scarce despite its slightly higher official mintage figures.

The 10Y, 25Y, and 50Y were issued in 3-coins 1995, 1996, and 1997. The 1996 10Y was also issued separately, and this is reflected in the higher mintage figure.

Several Reference Pictures are shown below.

1995

1997

New Panda Coin Info Website

2007-12-18T23:51:00.000-08:00

Pandacolletor.com is a new website dedicated to collecting Chinese Panda coins. It is not a promotional site, but rather a well researched informational site created by a dedicated collector.

I highly recommend this website for its original research into panda coin scarcity, including actual mintage figures and auction data, as well as its very complete set of coin images.

www.pandacollector.com

China's wealthiest investors set for gold spree

2007-12-14T16:21:00.000-08:00

This article from Reuters is quite interesting, but attracted almost no attention in the broader press.

China's wealthiest investors are on the brink of ploughing as much as $68 billion into gold markets as they take profits from roaring share prices and steer clear of property, a top fund manager and bullion bull says. Wang Weilie, a pale, bespectacled 40-something who manages over 1 billion yuan ($135 million) on the Shanghai Gold Exchange on behalf of himself and clients, says the so-called "Zhejiang clique" are ready to pounce after Beijing opens up spot market bullion trading and a futures contract launches early next year.

After amassing an estimated 3 trillion yuan ($400 billion) from investing in red-hot real estate and stock markets which have risen five-fold in the past two years, the wealthy group from eastern China is looking for the next sure bet. Wang says that's gold, and expects the amount of Chinese capital invested in the bullion market to soar 100-fold to some 500 billion yuan ($67.5 billion) in the next two years -- a sum that could catapult China ahead of India as the world's top buyer.

"We all agreed that upside room on stocks was limited, as was upside on property prices. But the gold price has only increased minimally, even after 20 years of China's reform and market opening," Wang told Reuters during a lunch with three business partners in Lujiazui, Shanghai's financial hub. Coupled with inflation and global economic uncertainty, the redirection of Chinese capital towards domestic gold contracts will help spot prices more than double, says Wang, who says he once cornered two-thirds of the Chinese gold forward contract. "Spot gold prices will hit $2,000 in coming years," he said. Wang expects more than 15 percent of the capital currently invested in China's stock market to move to gold trading. China's total market capitalization peaked at about 35 trillion yuan in October, exceeding the country's gross domestic product. The main stock index tumbled nearly 20 percent last month while Beijing has continued tightening controls over the property sector to limit price gains.

Rare Silver Proof Pandas on Fire

2007-05-27T10:27:00.000-07:00

One of the greatest sleepers in the Panda series appears to be taking off. While most of the silver Pandas issued have had mintages in the 200,000+ range, there are several little known issues with mintages from 8000 to 25000 peices. These are the 1983-1985 BU silver coins and the 1989-1996 Silver Proofs.

Mintages:

1983: 10,000
1984: 10,000
1985: 10,000
1989-P: 25,000
1990-P: 20,000
1991-P: 20,000
1992-P: 20,000
1993-P: 20,000
1994-P: 15,000
1995: 10,000
1996: 8,000

The 1983-1985 BU coins continue to increase in price steadily: currently in the $300-$500 Range when you can find them.

Since the BU silver Pandas often have a very proof-like finish, the proof versions have been often overlooked. In fact, the P mintmark may be all that distinguishes them in some years.

The 1995 and 1996 issues, however, have no P mark. The obverse panda design on the proofs is different from the BU coins. I have been amazed at the low prices of these rare coins, until recently. Over the last 8 months the prices have soared!

1995 Obverse:

1996 Obverse:

The 1989-P through 1994-P issues have also started to rise, moving from $30-50 and approaching $75-$100+.

Keep an eye on my Ebay store for rare silver and gold panda coins.

Jay's Rare Panda Coins

PCGS vs NGC Grading: Apples and Oranges

2007-04-29T21:09:00.000-07:00

NGC and PCGS grades are not the same. As shown in the graph below, for 1982 Pandas, PCGS clearly uses much tougher criteria than NGC. NGC graded 44% of 82 Pandas as MS69, but PCGS only allowed 16% to reach that level. In fact, you have to add PCGS MS67 (12%), MS68(16%) and MS69(16%) to equal NGC's MS69 rate. One could conclude from this that a PCGS MS67 coin could be equated with an NGC MS69 for rarity.

Dealers have noticed this too. They have sent 3 times as many coins through NGC. Could it be because they know NGC will give a higher grade?

Collectors beware. If you care about accurate and meaningful grading, stick with PCGS.

Why Invest in Chinese Panda Coins?

2007-04-23T23:57:00.000-07:00

For decades, the Chinese government has minted the Panda coins and sold them primarily to foreigners. Chinese citizens either were not permitted to own, or could not afford gold and silver.

Today China's wealth is growing. Billions of inflated dollars and euros flow in daily to buy cheap manufactured goods. China has a long tradition of holding gold and silver as a store of wealth, and the new rich and middle classes will seek to do the same.

Mintages of the Panda coins are very low when compared to many highly valued US coins, yet the emerging Chinese middle class of 300 million people is as large as the entire US! As the Chinese people discover the rare and beautiful Panda coins of their own country, these rare coins will become much more scarce and valuable.

Buy what China buys.

1982 Gold Pandas Go Through the Roof

2006-10-06T21:44:00.000-07:00

Evidence of the increasing demand for early rare Pandas can be seen in the chart below

Prices of 1982 1oz Pandas have nearly tripled from about $1000 in late 1994 to about $3000 today. The orignal mintage of this coin was 15,971 coins.

Interestingly, the 1982 1/2oz panda, with a lower mintage of only 13,339, has not yet moved up more than 30%, making it a very good value.

Low mintage, early gold 1983 and 1984 pandas are also still at reasonable prices.

The Market for Modern Chinese Panda Coins

2006-10-02T00:48:00.000-07:00

China began issuing the gold Panda coin series in 1982. Silver Pandas were minted beginning in 1983. These coins were very popular due to thier beauty and bullion purity, and many were used for jewelry.

Mintages for the early dates were very low, but until recently, prices did not reflect the rarity of these attractive coins. However, withing the last year, the price of the 1st year issue coins has tripled.

Factors driving demand for Pandas

the bull market in coins and precious metals
in 2006 China legalized the ownership of gold by chinese citizens
growing middle and upper class of 300 million people now have the financial means to buy gold and silver