Saturday, January 11, 2014

Why You Should Invest In Chinese Gold Coins

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.

Although there are several companies that deals in minting, the actual release and control is done by China Gold Coin Incorporation (CGCI). In the United States of America, they are distributed by Panda America.

A bullion symbol, bullion fineness, the denomination and the size are also encrypted on the reverse. This makes it the most attractive and series of currencies particularly due to universally appealing subjects featured.

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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