[QA] What happens to Pandas when the SHTF?

Hi Popcorn, in my view, there is a lot of hype regarding the counterfeit Panda issue that does not accurately reflect the actual domestic or international market. It is normal for people to be naturally suspicious of coins they are not familiar with, but as Pandas increase in popularity and become more commonly available, I am sure the paranoia will disappear fairly quickly.

Within my circle of investors which are mainly professionals and farmers, the counterfeit topic is a non-issue.

When it comes time to sell Pandas, I have discovered the greatest amount of resistance does not lie with the general public, it is usually only a couple of people within these forums that make a lot of noise.

In the last few of years that I have been collecting Pandas, I have never had any issues selling (or buying) Pandas in these forums, or outside of these forums - and I have sold to personal collectors in Melbourne, Canberra and Sydney. Similarly, in dealing with Pandas overseas, I have done deals within Malaysia, Singapore, China without any issues. I have also negotiated Pandas in Israel without any issues.

In China the issue of counterfeit Pandas does not exist (at least at the places I've been to, and i've probably been to more coin places in China than most people within these forums)... because if you get caught peddling bad bears, you are likely to die. When it comes to fake overseas coins, that is a different topic - and those are usually destined for overseas markets instead of the local market (different story for another day).

From what I have experienced, the average Aussie mum and dad looking for a bullion coin to invest in quickly realizes the profitability of Pandas and gets over the hyped up counterfeit issue pretty quickly. They often quickly realize, "Oh! I understand that Pandas are worth counterfeiting!" and not "Oh! There are counterfeit Pandas so I don't want to be involved with these coins."

Those who get over the paranoia faster are in a better position to profit from Pandas.

E.g. If I let the counterfeit issue stop me from buying Pandas in 2009, I would not have been able to profit from having coins that are now three times the value of a standard bullion coin.

Just think about the $100USD note. It is one of the most counterfeited notes in the world, yet it is the most commonly accepted note in the world. The counterfeiting doesn't stop the USD note from being traded or accepted.*

Similarly with Pandas. If the counterfeit issue was as serious as some people hype it up to be, then Pandas would not be as profitable as they have been. Obviously there is a market for Pandas as the prices achieved by Pandas at the auctions and dealers daily prove this.

Those who constantly harp on the counterfeit issue in my view are doing a disservice to the general public, because they are scaring people away from what has historically been one of the most profitable bullion coins to own in the last 20years (fact). Just think, if you could get into Panda coins even just 2 years ago in 2009, you could have tripled your REAL value in ounces of silver by buying Pandas. This isn't fantasy, this is a verifiable fact, and what stops some people from investing in Pandas is a lie that the counterfeit Panda issue is significant.

Those who do consider the counterfeit issue to be a significant issue should aim to guide people to where they can buy genuine Pandas confidently, instead of advising people to avoid one of the most profitable bullion coins in the last 20years, because by giving poor advice, that does not help anyone.

The Pandamonium is just getting started, and I honestly believe that those who get in early will do better than those who get in late (or don't get in at all).

As Jim Rogers says: Do your homework.

I hope this helps.
Yennus.

* Here is a story about a person who got landed with a fake $100USD note and wasn't able to return it... Hopefully most people that do get fake bears on Ebay can get their money back.
http://www.flickr.com/photos/11441631@N00/2268028694/

 

wow!! you heard it !! India is getting popular!!
Its called BIS HALLMARK. Done by Bureau of Indian Standards (BIS).
It is necessary for all gold jewelery, and is a standard for Purity

And as for the thread, Counterfeit are every where, and you won't believe, we in India were getting a lot of counterfeit Gold jewelery, thats why this standard was introduced.

In my opinion Counterfeit are always there, where good money is to be made. So, it is important to be educated in the think you are getting in...

We have a quote here " If you are in a field, try and get to the top of it. Otherwise Don't touch it."

Thanks
Miner

 

Agree 100% ... I have said the exact same thing in another thread ...