The Reasons Why The Demand For Chinese Gold Coins Continues In An Upwards Trend

By Marissa Velazquez


Chinese gold coins have a rich history dating back to over 3000 years. Minting of the modern coins which are of 99.90% fineness started in 1982. The bullion coin is currently released sizes of 1, 1/2, 1/4, 1/10, 1/20 ounce and 1 g by China Gold Coin Incorporation (CGCI). Although larger sizes of up to 12 ounces have been released, they remain very scarce as they are hardly released on circulation. They are named gold pandas after the panda depiction on their reverse.

Chinese gold coins are much sought after item by investors, coin collectors and even jewelry dealers. It is not surprising they are always in an appreciation path. This is largely attributed to the fact that the spot price is always higher than the bullion melt value even at the time of production. They are also minted in limited quantities keeping demand high above supply.

Such factors as limited quantities minted, high demand from investors, jewelry industry and coin collectors, the spot price of is always high above bullion melt value. This is best evidenced by a comparison with other international bullion currencies, majority of which hardly trade above their melt value.

What perhaps makes this coin irresistible to coin collectors is the adorable panda depiction on the reverse. The images of giant pandas are so well depicted with each of the subsequent series with a unique panda picture as a tradition. The tradition that has lasted since first minting to date except for those of 2002 which were similar to the 2001 series as the policy had been changed that future gold panda coins maintain similarity. The objection from collectors forced CGCI to reconsider this policy and went back to the tradition.

These coins have attracted interest from large pool of investors and collectors. While collectors find them highly attractive particularly with the panda image on the reverse that changes every year, the jewelry dealers on the other hand are faced with high demand both from fashion lovers who prefer to either wear them directly as a necklace or the other category that goes for the modified ones.

The collectors like them for their monumental value, majority preferring to collect them with date series. In jewelry industry, a collection of these coins is won directly as a necklace. With such high level of fineness, it is also used to manufactures other ornamental items. Investors too are not left behind; they are actively investing in them. They are encouraged by the active market this currency enjoys both locally where it serves as a legal tender and a banker of choice and internationally where it is used as a store of wealth and monumental item.

Investors are perhaps the reason behind their scarcity. The fact that they are always trading at a price above their melt value in addition to high demand from the jewelry industry and collectors, they find ready market both domestically and internationally. China uses them as a legal tender in addition to items store of wealth with Panda America being the sole distributor in America.

Chinese gold coins are still the most sought after bullion currency driving interest from all investors globally. With bright future largely by the fact that Chinese government are preparing to use bullion as a reserve currency, the demand is set to sky rocket, and speculators are already taking advantage of the situation. As an investor, it will be unimaginable to miss out of this opportunity.




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