Thursday, June 30, 2011
Chinese Central Bank Increasing Gold & Silver Panda Coin Production
According to the Chinese news agency Xinhua, the People´s Bank of China (PBC) announced at the beginning of the week an increase in the number of Panda gold and silver coins minted this year. Increasing production is necessary to meet the rapidly growing physical demand for the both gold and silver among the Chinese population.
Xinhua states that the Chinese central bank will increase production of the Panda gold coin with a weight of one troy ounce from 300,000 to 500,000 coins. In the case of 1/20, 1/10, 1/2, as well as 1/4 ounce coins, production will be raised from 200,000 to 600,000 coins.
The production of the silver Panda will be increased as well; the PBC has disclosed that issuance of one ounce silver coins will double from three million to six million pieces. Physical demand for gold and silver is rapidly growing in China, after inflation reached a new three-year high in the month of May. China‘s population is very concerned about rising domestic prices, with many Chinese shifting large parts of their disposable income and savings into precious metals. The same phenomenon is also evident in many other Asian countries.