[NEWS] Silver Demand in China Booming

Discussion in 'Modern Chinese Coins & Medallions' started by yennus, Jul 28, 2011.

  1. yennus

    yennus Well-Known Member Silver Stacker

    Oct 24, 2010
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    Silver Demand in China Booming

    "Silver demand in China is soaring. Imports of silver to the Asian giant have reached new highs, and analysts maintain that demand for this year will only continue to grow. The growth comes not only from industrial and jewelry demand, but also from the increased investments in silver as a hedge against market losses and inflation."

    "Analysts see growing demand for silver in China, as well as India, rising by as much as 30 percent on the year. The increase in demand is also strong for Chinese silver 'Panda' coins, prompting the Peoples Bank of China to double the maximum issuance of coins for the year."

    "The growing demand for silver and gold coins underscores the concerns of the Chinese middle-class towards their economy. The weak economic data worldwide may dampen the outlook for the industrial use of silver; however, inflation concerns in China will most likely draw more investors into the silver market."

    Opinion: The only publicly available investment grade silver/gold coin in China is the Panda. Available at virtually any bank within China. I would expect to see modest gains in even 2011 1oz Silver Pandas within the next year above spot movements, especially as spot silver moves up, and physical silver supply moves down.

    If 2011 Panda bullions coins were to mirror the same population of lunars (e.g. 300,000) then there should be approximately 17million Panda bullion coins minted (exact number is 16,956,521). Panda coins have been under produced since their production, and even today they are still under produced (when compared against Lunars and Kooks).

    For those that lament not getting 2010 Pandas back in 2010, or 2009 Pandas back in 2009, 2011s might still present a modest vehicle to use to gain exposure on the Panda run. Bargains can be had on these, especially if they are priced between $40-$50/oz.

    6,000,000x 1oz 2011 Pandas for a Chinese population of 1,300,000,000.
    300,000x 1oz 2011 Lunars for an Australian population of 23,000,000.

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