How investors buy gold and silver coins

Recently, the international gold price plummeted, triggering market shocks. In the domestic gold and silver coin market, the investment coins closely related to the gold price have been directly affected, and some new and new gold and silver coin prices have also fallen. Under the current market situation, what impact will gold prices have on gold and silver currency prices, and whether the gold and silver currency market that is undergoing adjustment can reproduce the explosive market conditions of 2010? How should investors choose gold and silver currency varieties?

After the plunge of gold, market participants generally believe that the dramatic fluctuations in the price of gold raw materials will have very different effects on different types of gold and silver coins.

Yin Min, deputy secretary-general of the Chinese Collectors’ Association’s Coin Collection Committee, believes that the plunge in gold prices has had a great impact on Panda gold coins. Because Panda coins belong to investment coins and their circulation is large, their prices are linked to gold prices. At present, with the fall in the price of gold, the market price of the five gold panda coins in 2013 has dropped from about 23,000 yuan in March to about 19,000 yuan. The rapid decline in prices has made many people who want to buy not dare to buy and can only wait and see, which has had a certain impact on the psychology of investors.

Huang Ruiyong, director of the Institute of Contemporary Gold and Silver Research at Shanghai Finance Institute, believes that this round of gold price plunge is a sign of suppression. At the macro level, major economies such as the United States, Europe, and Japan are all implementing extremely loose monetary policies, and the economic recovery is not clear. In terms of fundamentals, it does not support a sharp drop in the price of gold. If the price of gold falls too sharply, a rebound will occur and the price of the investment currency will increase.

To analyze the impact of gold price fluctuations on gold and silver coins, investors must note that gold and silver coins are not a unified concept. The senior gold and silver coin collector Ge Zukang said that for the newly issued gold and silver coins, or the new new gold and silver coins, the price is affected by the drop in the price of gold. For example, the Putuoshan series, which was issued shortly after, was still at a high price when it was priced, and the price of gold dropped sharply after its issuance, and its price was also affected in the short term. The “old and thin” gold and silver coins with relatively long issuance time and relatively small circulation are relatively “resilient”, and some varieties are still rising. Because the "precious and thin" itself was issued at a small premium, and after sufficient market precipitation, most have become collectibles that are sought after by the market.

The downturn is still compared to the popular market of zombie world war iQIYI movie network in 2010, and the current gold and silver coins market is in a downturn. For some time in the future, gold and silver coins will continue to adjust sideways, or will re-emerge after accumulating energy. This is an issue that investors are concerned about.

Many market participants believe that the market is still in a natural adjustment stage. Yin Min said that the gold and silver coin market has been adjusted for more than two years and is still continuing. There are two main reasons for this. First, the heat of the entire market before and after the Olympic Games and the World Expo was too high, and even to some extent it overdrawn the enthusiasm of investment in gold and silver coins. After a big fever, it needed to recuperate. In recent days, the market has also experienced a round of gold bullish retreat. The combination of the two factors has magnified the negative impact. Ge Zukang said that any collection cannot be forever rising. Before and after 2010, gold and silver coins, especially the “old and thin” varieties, have generally risen. They need a digestion process. This is a natural phenomenon.

The current relatively cold market conditions cannot prove the reversal of market trends. Huang Ruiyong believes that after peaking in 2010 and early 2011, the gold and silver coin market is currently gaining momentum. Although the prices of some gold and silver coins have now been adjusted by 20% to 30%, the transaction volume is very small, and there is absolutely no phenomenon of people competing for shipment after losing their confidence. This shows that the market is now at a very delicate juncture and everyone is watching.

In the market waiting period, there is no lack of potential benefits. Huang Ruiyong said that the Ministry of Finance and the State Administration of Taxation jointly issued the "Circular on the Exemption of Value-Added Tax on the Gold Coins of the Panda General System" at the end of last year: Since January 1, 2012, Pandas have been sold to eligible taxpayers. VAT exemption. The exemption of the value-added tax of 17% on the gold coins of Panda will not only reduce the cost of purchasing the Panda coins through formal channels, but also clear the tax and fee barriers for the repurchase of Panda coins. However, once the repurchase of Panda gold coin can be universally implemented, the trading volume of Panda gold coins will increase, which is also a clear positive for the entire gold and silver coin market.

Ge Zukang said that from the perspective of the international market, investors’ demand for China’s gold and silver coins remains strong and the outlook is still very good. He just returned from the international numismatic exhibitions in Germany and Singapore and found that China’s gold and silver coins are still the most popular at the show. The goods in the hands of Chinese currency dealers have almost been wiped out by foreign buyers and their prices are higher than those in China. And compared with the past, there are fewer and fewer "old, thin" gold and silver coins. Ten years ago, at the International Coin Show in Hong Kong, 5 ounces of old coins were common and almost invisible now.

How to get real money Compared to 10 years ago, the prices of many gold and silver coins have gone up by 10 times or even 100 times. Although market participants generally believe that the outlook is still good, how to choose the most potential for appreciation from more than 2,000 kinds of gold and silver coins? Variety is still a problem. In this regard, industry experts also gave their own suggestions.

Ge Zukang said that if there is a certain amount of money, it is still a small gold coin with the theme of buying less circulation. Because relative to the silver coin, the gold coin itself is of high value, the issue premium is small, it is easy to preserve, and the appreciation potential is even greater. It is recommended that you mainly choose 1 ounce and half ounces of gold coins issued before 2000. These gold coins have a smaller circulation than the recent gold coins, and they are cheaper than the larger ones. They cost about tens of thousands of yuan each, and ordinary investors can afford it economically. Although there are many varieties of gold and silver coins, so far, only 1 or 4 ounces of gold coins and half an ounce of gold coins have been issued for only 40 or 50 types respectively. Investors can only find their own varieties by doing their homework.

In terms of specific methods of purchase, Ge Zukang proposes to focus on investment, buy the best currency, not the cheapest currency, and hold it for a long time. For example, if investors have 100,000 yuan to invest in gold and silver coins, they will buy three gold coins worth 30,000 yuan. Although the price is higher now, but because of its greater potential for appreciation, long-term holding can also obtain good returns.

Huang Ruiyong suggested that investors should first separate the investment currency from the commemorative currency, and panda gold coins should be linked to gold prices, and should be used as a form of asset allocation for gold and silver. In the choice of commemorative coins, the most important factor is the circulation volume and manufacturing volume. As long as it is a scarce variety, the space is still not small, it can be described as a "rare" cover 100 ugly. The second is to pay attention to the design, craftsmanship, and themes of gold and silver coins. He suggested making a relatively decentralized portfolio, one-third of Panda coins before 2006 or earlier, one-third according to their hobbies, to buy some beautifully carved gold and silver coins, the rest of the funds can be invested High-end varieties in gold and silver coins. Among the varieties released in recent years, Yin Min believes that the Wutai Mountain and Putuo Mountain series are good choices. The circulation of the two is the same. In terms of pattern selection and production process, the latter is also slightly superior. Moreover, due to the fall in the price of gold and the suppression of consumer spending, the current price of the Putuoshan series is not high, and there is still great potential in the long-term.