Interesting article on Panda coins (from post on CCF)

Discussion in 'Modern Chinese Coins & Medallions' started by comeaux, Nov 16, 2011.

  1. comeaux

    comeaux New Member Silver Stacker

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    http://www.crocodileclips.org/2011/11/11/investing-in-coins-gold-panda-chinese-bullion/

    Investing in Coins: gold Panda, Chinese Bullion

    Posted on November 11, 2011
    Gold coins have a timeless value. Using this rationale, it is easy to see why a growth in the gold market is not only a reality, but a new historical trend. While there are many options to do this, there seem to be some very popular options. For the people who are trying to make an effort to invest ingold, bullion in the form of gold bars can be among the most intelligent of choices. Conversely, in the opinions of many other investors, the popular and proven method of easily buying gold coins made by the mints of a variety of countries and accepted as currency, is the better option. The Chinese Panda has not been historically known for its popularity, but times are changing.

    Historically, the Kruggerrand which is produced by South Africa has managed to acquire the most popularity within the niche which it essentially created by itself. In the past few generations, various countries have brought into existence a large amount of popular choices. The result of the chaotic and unstable financial markets around the globe around 2011 has been soaring spot prices for precious metals, and especially for gold which is often viewed as among the safest vehicles with which to store wealth. Those pressures from the global market will probably strongly influence the popularity and trading of one of Asia's only gold bullion coins, China's Panda.. This theory is not just a guessing act, we can take a look at concrete facts to get a clue.

    The most popular coins have never been the most technically superior. In truth, some of the most historically loved, traded and circulated gold coins which were produced by official mints have not held the highest measures of gold pureness. The two industry favorites to this day have been the two coins which manage to rank tied for last in the industry for this same measure. Both the Eagle of the USA, as well as the Kruggerand of South Africa are gold coins made up of only twenty two carat purity. In sharp contrast, the Panda produced by China is not only twenty four carats, but also three nines pure.

    If we want to understand why China's bullion coin, the Panda, will soon see a gigantic rise in trading volume, first we need to take a gander over at the situation of the economic health of the world's markets. Of course, there are some countries which tend to have a much higher percentage of GDP to invest in products such as gold because they tend to be savers and not spenders. China and Japan are two such examples. This is due to their emergence as global financial leaders, but mostly due to the fact that they save a lot of money. History will show? The Panda will be the bullion coin of choice.
     

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