[QA] 1oz Gold Pandas or Fractionals?

Discussion in 'Modern Chinese Coins & Medallions' started by yennus, Oct 24, 2011.

  1. yennus

    yennus Well-Known Member Silver Stacker

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    Q> I am thinking of getting a few current and vintage Gold Panda coins but at this stage I do not know where to start. Am I better off with 1oz Gold Pandas or fractional Gold Panda coins?

    A> Hi Xcxxx,

    many thanks for your question.

    You ask a very deep question, regarding whether you should get the 1oz gold Pandas or fractionals...

    There isn't an easy answer to this, and the answer will depend on your level of risk/reward that you are willing to undertake.

    Here are a few things to consider in answering your question of whether you should go for full 1oz Pandas or fractional Pandas.

    1. 1oz Pandas sell the easiest in China. 1oz silver or gold Pandas usually perform very well... it is a cultural thing where Chinese buyers often want to either buy a full 1oz Gold Panda, or a full set (1oz, 1/2oz, 1/4oz, 1/10oz and 1/20oz), in preference of individual fractionals. This also applies to fractional silver Pandas. 1oz silver Pandas have traditionally sold much better than 1/2oz silver Pandas.

    This naturally leads to 1oz Pandas being in the greatest demand historically and also at the present.

    2. HOWEVER, with the increased worldwide interest in Panda coins, and with the rising price of gold, many people have been purchasing fractionals, expecting that these will be the next Pandas to jump in price. Afterall, it is more affordable to put together a Panda collection of 1/20oz Pandas from 1989 to 2011, than trying to assemble the whole 5piece set from 1989 to 2011*. Fractionals are also very limited in mintage, so the rarity factor is an advantage.

    *Check out the Comeaux Collection!!! Stunning!

    3. HOWEVER, on Silverstackers I have found 1oz Gold Pandas the hardest to move... HOWEVER, outside of Silverstackers I have been unable to keep up with demand for 1oz 2011 Pandas... so it depends on the audience you are familiar with.

    4. At the SydneyStackers Meet, I made the case that buying fractional Pandas was a riskier move than buying 2011 1oz Silver Pandas, but it was likely going to be a move that gave better returns in the medium to long term.

    I would recommend subscribing to Peter Anthony's Pricepedia - I do, and I compile a lot of strategies from his suggestions and also his numbers. Usually he also makes very sound recommendations especially regarding which fractionals may do well in the future.

    Comeaux is probably also better experienced in buying gold Pandas than I am, so asking for his suggestions would be a good idea... I'm primarily a silver Panda collector since my pockets don't go too deep, though I do collect a few older gold fractionals just incase they do take off.

    Thanks for your question. Fishball, 25Grizzlies, Tamo42, Comeaux, and PandaCollector (as well as others) would be in a good position to answer this question.

    25Grizzlies is giving a Panda presentation this Sunday in Sydney! Such an honor to have a fellow stacker make time to visit us in Sydney! His recommendations are likely to be very good.

    Many thanks,
    Yennus
     
  2. tamo42

    tamo42 New Member

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    Personally, I'd go with 1/4 and 1/2 oz gold fractionals if it were a choice. They are typically the key coins in the tao.
     

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