Silver Panda Coins Outperformed Silver Eagles

Current year Chinese silver pandas usually sell for a few dollars more than Silver American Eagles.  For example, 2014 BU 1 oz Silver Eagles are currently retailing for about $6 over spot while 2014 Silver 1 oz Pandas are about $9 over spot (single coin price, excluding shipping).  This is because the China mint charges more for their coins than the US Mint, Panda mintages are lower, and demand for Pandas within China is seemingly insatiable. 

American silver buyers will sometimes shy away from Pandas because they don't want to "overpay" for silver bullion.  If you plan someday to melt your coins or trade them post-apocalypse, then by all means, spend as little as possible.  However, if you are looking for investment return, please take a look at the two charts below.

These charts show the current retail price of China silver pandas and US Silver Eagles (coins dated 2004 to 2014) on ebay and other mainstream retail websites (spot silver current near $20).  While the eagles certainly have tracked the price of silver, Pandas have greatly exceeded eagles at holding their US dollar value, despite the decline in silver prices in 2013.

So for example, a 2010 silver Eagle purchased in December 2010 would have cost about $30, and a 2010 silver Panda would have cost about $33. (spot was ~$24 at the time) Today the Eagle is worth about $27 while the Panda sells for about $40.

As you can see, silver eagles have not really appreciated vs silver, while pandas have continued to increase.

	Dec 2010 Price	Dec 2013 Price	Gain
Silver Eagle BU	$30	$27	-10%
Silver Panda BU	$33	$40	21%

The reasons for this include low mintages and high demand for silver pandas.  In 2013, 8 million pandas were sold while the US Mint sold more than 40 million eagles!  In addition, pandas are widely viewed as more beautiful and collectible then their somewhat boring US counterpart.

Over the past 10 years (actually since 1983), Silver pandas have delivered a better US dollar return than other bullion silver coins.  If you are looking for a little extra zip in your silver investment, Chinese Pandas may be an good option.

With Silver prices at 4 year lows, perhaps now is a good time to consider stocking up on silver pandas.

Gold & Silver Panda Coin Buyer's Guide Book - 2nd Edition

The new Second Edition of the Gold & Silver Panda Coin Buyer's Guide by Peter Anthony is now available.  This book is the essential panda coin collectors reference book.

It also makes a great holiday gift for the Panda coin collector in your life!

The new 2nd editions covers Pandas up to 2013, add coverage for Unicorns, and includes new detailed information about key Pandas varieties

I highly recommend this book!


The Gold and Silver Panda Coin Buyer's Guide Second Edition is a comprehensive guide to Pandas.

Its 256 pages provide unique insights, photos and the best reference in print about nearly 600 charming -- and often valuable -- coins in this growing family.

From basketball games to kite festivals to international diplomacy, the second edition of the Gold and Silver Panda Coin Buyer's Guide tells the stories behind the Panda coins and their native country. It will bring hours of enjoyment to all coin lovers -- from experts to beginners.

Besides beauty, Pandas offer outstanding profit potential. Pandas that used to be sold as bullion now cost thousands of dollars. 

Many valuable coins still trade hands based on their metal content because buyers and sellers don’t realize their scarcity. High profits are already going to those who know which is which. The second edition of the Gold and Silver Panda Coin Buyer's Guide is the only book that gives you the information to pinpoint overlooked and undervalued Pandas — the coins most likely to rise farthest and fastest.

Highlights include:

Photos of Panda coins and medals from 1982-2013
Weights, metal content and mintage for each coin
Identifies best buys
Expanded estimates of current B.U. populations
Includes platinum, palladium coins and medals
New varieties described and analyzed
NEW! Panda catalog numbering system
Bonus chapter on Unicorns
256 pages
English-Chinese for selected key facts

Books are available now in the Rare Panda Coins store.

2013 "Shanghai Memory" Jewish Ghetto Panda Coins - Beautiful Low Mintage Panda Medals

The Shanghai Mint has just produced a new and very interesting set of Panda medals commemorating 70th anniversary of the shelter of more than 18,000 European Jewish refugees in Shanghai during World War II.  Officially known as the "Designated area for stateless refugees", and also know as the "Shanghai Ghetto" or "Hongkew Ghetto".  The design of the medal represents the hospitality and humanitarianism of the Chinese people who offered the Jews refuge during the war.

The commemorative medals are a very unique and groundbreaking issue from the Shanghai Mint.  These medals have a number of important characteristics that will make them very desirable to collectors.  All are 99.9% pure gold or silver.

• First Panda medals minted with laser etched serial number
• First Chinese numismatic piece with a Jewish theme.
• Extremely low number of pieces produced
• Designed by famed mint designer Rocky Zhao with his father, legendary engraver Qiming Zhao

Exceptionally Low Mintages

We have not seen such low mintages Pandas since the 1990s.  One example would the the Zurich International Coin Expo 1 oz Panda medal, mintage 550, which sold at the recent Hong Kong Auction for

almost $5700 in PF68.

Here are the official mintages:

2013 Shanghai Memory	Mintage
5 oz Gold Panda	36
1 oz Gold Panda	570
1 oz Silver Panda	5773

The 5 oz gold was sold out from distributors via pre-orders before release.  In addition to the usual interest from Chinese collectors, demand from collectors of Jewish historical commemoratives has been very strong.

Laser-Etched Serial Numbers

The Shanghai Memory medals are all sequentially serialized with a number unique to the specific medal.  The 5 oz Gold are numbered #1 - 36, the 1 oz Gold  #1 - 570, and the silver #1 - 5773.  Each coin has a certificate (COA) with the matching number.

Serialization presents some interesting new possibilities for collectors.  As with serialized prints in the art world, early (lower numbered) coins may be considered more desirable, certain numbers may be more or less "auspicious", and matched sets can be created.

In fact, the lower numbered Shanghai Memory medals have been pre-packaged into gold and silver matched sets.  Each of the different coins in the set has the same serial number.  So in order to get the lower numbers, one must buy all of the available sizes.  For example, to get #35, you have to buy the 5 oz gold, 1 oz gold, and the 1 oz silver, all of which will have 35 etched.  Here is the serial number map.

Matched Sets	Serial Numbers
3-coin Premium Set 5 oz Gold 1 oz Gold 1 oz Silver	#01 - 36
Gold & Silver Box Set 1 oz Gold 1 oz Silver Special 2-coin Box	#37 - 200
Gold & Silver Paired Set 1 oz Gold 1 oz Silver Separate Boxes	#201 - 570
1 oz Silver with box	#571 - 5773

Packaging

The medals are all distributed with special packaging and materials.  

All come with:

• Glass-Top Display Box
• Torah-like scroll containing historical information.
• Certificate of Authenticity (COA)

Details

• The silver medals are not in sealed plastic packs - only capsules.
• #37 - 200 comes with a special glass-top display box which holds
• one 1oz Gold
• one 1 oz Silver
• one Scroll
• Single display box that holds both coins and the scroll
• Two individual COAs
• #201 - 570 are sold in matched pairs

• one 1oz Gold
• one 1oz Silver
• two separate glass-top display boxes, each with scroll.
• Two COAs
• #571 - 5773 are 1oz Silver only
• Glass-top display box
• scroll
• COA

Where is the Panda?

There is a Panda on this medal.  The girl under the umbrella is holding a panda doll!

Therefore this qualifies as a "Panda Coin"

Exquisitely Detailed and Full of Symbolism

The medals were commissioned by Danny Spungen, a major collector of Chinese coins as well as a researcher and collector of materials related to the Holocaust.

The medals are chock-full of symbolism.  A detailed guide can be found here.

The Chinese Coin Market - Where Next?

After the big run-up of gold Pandas this last spring, many market participants are now cautiously standing on the sidelines wondering where things are headed next. Here we present some analysis and food for thought.

As I have written in previous posts, there is a tendency toward sector rotation in many markets, coins included. This means that after one sector has a bull run resulting in high prices, buyers will begin to look for undervalued bargains elsewhere.  Often in sectors that have been ignored for a while.

Chinese coin sectors for consideration:  Gold Pandas (BU, Proofs, Medals), Silver Pandas, Lunar Animals, Cultural.

Gold BU Pandas
Having just finished a very heated run, many of the most appreciated coins have cooled. Many buyers and sellers are waiting to see how prices settle-out.  Sales have slowed, but prices on most Pandas have not plunged. Crazy exceptions like 2002 1/10 are down quite a bit, but good solid 1990's gold pandas seem to be holding steady. There are just not many coins available to be sold, and most are now in strong hands. These coins seem quiet now, but key dates like 1995 and 1998 will be increasingly scarce and may eventually command very high prices

Gold Panda Proofs
The gold proofs were not part of the Spring 2013 frenzy and are very cheap right now. The scarce 1995 and 1996 1oz proofs are down 50% off their highs of over $20K a few years ago. With mintages ~1000 coins, these look very cheap compared to BU pandas. 1990-1993 proofs are cheap as well. The bimetals are in the same category. A 1986 to 1996 proof set is a nice long term buy.

Panda Medals
The Panda Medals are non-monetary "coins" issued by the China Mint to commemorate major coin shows around the world. Medals were issued regularly from 1987 though the mid 1990s, usually with very low mintages; 500 - 2000 coins for gold, 10K or less for silver. These are not technically coins, since they have no face value, but they are generally considered part of the official Pandas series.

After a long hiatus, minting of the medals resumed in 2012 at the Singapore show, followed by Philadelphia ANA, Berlin, and Long Beach. More are expected to follow. The arrival of new medals has brought new attention to the series overall. After years of neglect, and given the very low mintages, the medals a ripe for a resurgence. The Panda medals appear undervalued and are a key series to watch.

Silver Pandas
Silver pandas are still well below highs of 2011. Key dates are still in demand. I don't expect fireworks in silver until silver bullion resumes its ascent toward $100/oz.

Lunar Animals
The Chinese Lunar Animals are a very beautiful, unique, and well made series proof coins. Each year several
are issued depicting one of the 12 Chinese animal zodiac symbols. They have been made in various interesting shapes and sizes, such as plum flower, fan, rectangular, as well as round. Some are colorized. The designs are intricate, distinctive and very attractive. Chinese collectors tend to buy one each year and then put it away forever...  And very importantly, the mintages are very low.

These coins have had run-ups before, but not for several years. The availability of coins for sale is low, so there is real potential for price spikes.  These coins are very marketable in China, so any promotional programs would have a powerful affect. They are easy to like. We place these high on our list of coins to watch and accumulate.

The Spring 2013 Panda Coin Surge

February, March, and April were very exciting months for the Chinese coin market, especially for gold Pandas.  As the price of gold paper contracts on the COMEX and London markets declined from $1700 to $1350 per ounce, Chinese panda collectors went into full buying mode, driving prices of most pre-2011 pandas up substantially.

A major driver of the buying surge was marketing program run by one or more Chinese banks which sold complete 1982-2012 "master sets" of BU gold pandas to high net worth collectors.  A master set is a complete set of all 1/20 oz to 1 oz gold panda coins for each year.  That would be 5 coins (1.9oz) for each year except 1982 which has only 4 coins (no 1/20 oz) - a total of 154 coins, 58.85 ounces, 31 years.  Major China coin dealers were contracted to build many of these sets, setting off a competitive buying spree worldwide, driving up prices of most pandas and sending a few key coins into the stratosphere.

The fierce buying drained dealer inventories as well as ebay.  Soon, certain fractional coins were in short supply, preventing completion of sets. As we noted in past entries of this blog, dealer inventories were already low.  Chinese dealers had to outbid each other to get set completions.

As a result, some new panda scarcities were uncovered.  Surprisingly scarce coins and peak prices in late April:

1995 25Y 1/4 oz:  $5000
1995 50Y 1/2 oz:  $4500
2002 50Y 1/10 oz:  $3000  (that equals $30,000 per ounce!)
2006 50Y 1/10 oz:  $1000

The previously known scarce coins, 1998 all fractionals and 1994 1/2 oz also moved up.  1997 1/2s were tough to find as well.  1995 1 oz were over $5000.  Even "common" dates like 1985, 86, and 88 saw increases.

The master sets were mostly built with pandas that are not certified, with some dealers even buying and cracking-out MS69 coins to fill gaps.  The relative premiums on MS69 shrank as the prices for sealed and unsealed pandas increased

The marketing programs ended in early May, so the demand for these coins has subsided and extreme prices have retreated.  However, we have learned of more Panda rarities.  The master sets were sold to long-term buy-and-hold collectors for wealth preservation, so it is unlikely many of these coins will re-appear on the market any time soon.   It seems very likely that the coins above will be increasingly expensive and difficult to find.

Dealer stocks of almost all pre-2011 Pandas are still very thin.  The summer doldrums will be a time to slowly re-stock, but North American supplies are now very depleted.  The next buying binge, whenever that occurs, should send some Pandas to new and extreme heights.  This most recent bull-run happened when gold was declining and there was almost no participation from US and European collectors.  What will happen when gold starts to go up again and the west gets on the gold bandwagon?

Summer is traditionally the quite time in the coin business...  and an excellent time to be a buyer. 

http://rare-panda-coins.blogspot.com/2013/06/the-spring-2013-panda-coin-surge.html

Ebay Fee Increase on May 1

Dear Customers,

I wanted to make sure everyone is aware of the major increase of eBay fees that begins on May
1st 2013.  While the new fee structure has only modest effect on purchases less then $100, the increase
on items from $1000 to $4000 is very substantial.  The worst impact hits many gold Chinese modern coins.

The new system is billed as "simplified", but actually it is riddled with exceptions and special rates.  According to their website (buried behind links), the "special rate" for coins appears to be 7%.

Under the current system eBay fees slide from about 6% at $1000, 4% at $2000 declining to about 2.5% at $10,000.  Next week, the fees will be 7% all the way up to about $3800 and then fixed at $250.  This is a huge increase for coins in the $2000 to $4000 range.

Paypal then adds 2.2 to 3.2% on top.  So sellers could soon be paying as much as 9% in fees on a 2500 sale - that's $225!

Here are some before and after comparisons:

$1000 Coin:
Before May 1:  $63
After May 1: $70

$2500 coin:
Before May 1: $93
After May 1: $175

Over $3500:
Before May 1: $112
After May 1:  $245

While "Top Rated" sellers get a small 20% discount on these fees, the fee on a $3500 coin is still more then $100 higher in the new system.  I expect that some very high volume mass market sellers will have special secret negotiated rates with eBay, but for the average collector or smaller dealer, these fees are very substantial and cannot be absorbed.

Clearly this will force more coin transactions to take place outside of eBay.  It is unfortunate, because eBay is a reliable platform and the eBay sales history helps the market with price discovery.  However, I expect very few well informed buyers will click buy-it-now, and few well informed sellers will accept such huge fees on coins over $2000.

At Rare Panda Coins, we will continue to list our coins on eBay for marketing purposes, but the eBay listed prices will have to increase to cover the new fees.  However, our independent online store at www.rarepandastore.com will offer the same exact coins at much lower prices that do not include the eBay fees.

Paypal remains a good value for its buyer and seller protection services at a cost of  about 2%. Of course, if you are comfortable to send a check, we will pass the additional 2% saving on to you.

Bottom line: Shop directly with us.  Email us, call, or shop at www.rarepandacoins.com and you will save big money off eBay prices.

Best Regards

Jay Feldis
Rare Panda Coins Inc
www.rarepandastore.com

1994 50Y Gold Panda 1/2 oz

The 1994 1/2 oz Panda may be one of the rarest of the entire BU panda series.  Over the course of the last few years, 1994 1/2 has been more difficult for me to find than the 1998 or 1995 1/2 oz coins.  While certain varieties may be more scarce, for collectors of 94 BU 1.9 oz sets or Panda 1/2 oz sets, this is the key coin,

We have one available now in the store.