WBCC Newsmail 22, Vol. 2, January 11, 1997 ------------------------------------------------------------------- The Worldwide Bi-metallic Collectors Club (WBCC) is still grouwing. This week we can welcome the 30th WBCC member. Also you can read a great story about the China's precious Bi-metallics from our WBCC Helpdesk. As every week this WBCC Newsmail is sended to the WBCC members with an Internet connection and to the R.C.C. Newsgroup. We start this week with Hot Bi-metallic news. 1. Hot Bi-metallic news....By Martin Peeters, Netherlands End this month (January 24, 25 and 26th) there is in the Netherlands, The Hague, traditionally the coinshow "Holland Coin Fair". As each year The Dutch Mint will show and sell 2 new mint Sets (1997) with each a Bi-metallic token. The First Mint set is the yearset for 1997 and has a Bi-metallic token with a picture of the province "Gelderland". The quality is BU and the price is 28.50 Dutch Guilders, about 17.50 US Dollars. The second Mint set is a Special theme set and only 2500 pieces. The theme is King Willem I. This set has also a Bi-metallic token. The quality is BU and the price is 30 Dutch Guilders, about 18 US Dollars. 2. Hot Bi-metallic EURO news.......By Martin Peeters The Dutch Mint has struck a new EURO serie. The serie will have a 5, 10, 20, 50 and 100 EURO. Only the 10 EURO is a Bi-metallic and has a picture of P.C. Hooft, a famous Dutch Lyrics- and playwriter. The price for the Bi-metallic 10 EURO is 19.90 Dutch Guilders, about 12 US Dollars 3. Profile of a (new) member....By WBCC Focal Point Name: Ray Lockwood, USA E-mail: sunray@pulse.comtek.com Age: 58 Occupation: Teacher Hobbies: Collecting Bi-metallics including Bi-metallic Tokens, Medals. Love to travel and correspond with coin cellectors around the world. 4. China's Precious Bi-Metallics.......By Larry Friemel, USA China ranks sixth in world gold production producing 4,501,000 troy ounces a year. The leading producer is South Africa with a production of 19,737,000 troy ounces followed by the United States, Australia, Canada, Russia and then China per the Encyclopedia. However, in the realm of gold coin and gold coin bullion production China ranked 2nd in the world for its 1996 sales per Coins. China's ability to sell large quantities of gold coins appears to result for two primary factors. First, the ethnic group which they focus on still prefers to retain on-hand hard currency (gold) versus putting it in the bank. Secondly, China has found 3 very innovative designs to highlight their coins that make them desirable for jewelry, as gift items and provide instant recognition for those looking to buy bullion coins. China's principal bullion coin design feature is that well known Panda for most of the English and Asian speaking world. However more recently for other Asian and several European markets, China has begun marketing the Unicorn and Dragon series gold bullion coins. An array of other items are produced that go with the season (like the year of the rat coins), but I will not go into these because they have not been produced in Bi-metallics. As it turns out the three designs chosen by China to be placed on their coinage have long historical significance... A) The giant pandas, Ailuropoda melanoleuca, which looks like a bear, has been classified in the bear family, Ursidae; it also has been placed in the raccoon family, Procyonidae. The giant panda inhabits cool, damp bamboo forests in the mountains of central China near the Tibetan border, where it is generally found at elevations of 1,500 to 4,000 m. Giant pandas grow to 1.5 m long, plus a short, 16 cm tail and weigh 150 kg or more. Bamboo constitutes the major part of their diet. Mating takes place in April or May, and one or two young are born, usually in January. The Chinese government has established 12 Panda reserves with new breeding centers in an attempt to prevent their extinction. It is this same animal that people have flocked to see in the National Zoo in Washington DC and that the San Diego, California Zoo is willing to pay $10,000,000 to lease a pair which has just arrived for the next 10 years. B) In both Western and Eastern mythology, the unicorn is a fabled animal resembling a horse but with a single long horn growing out of its forehead. Those who drank out of its horn were to be protected from poisoning, stomach trouble and epilepsy. According to medieval European folklore and art, the unicorn symbolized the power of spiritual love over fierceness. However, in Chinese mythology, the unicorn presides over the safe keeping and enlightenment of literature. C) The dragon another imaginary creature common to many mythologies, has a reptilian body covered with scales. Many dragons have wings or the head and forelegs of a lion or bird of prey. Dragons usually breathe fire and are associated with water. Most dragons are symbols of evil, but in China many are benevolent protector. Because of the power of the dragon, it was adopted as the symbol of the emperor of China. The Phoenix was the Greek name for the mythological bird that was sacred to the sun-god. An eagle like bird with red and gold plumage. Symbolic of the rising and setting of the sun and used in China to represent the empress of China. Very imaginative and focused marketing plus very artistic coin designs have propelled gold bullion coins from China into a very lucrative money making endeavor. China has developed a commodity that can compete with the South African krugerran, Canada's maple leaf and the United States gold eagles. China yuan (dollar) coins are basically produced in 10, 25, 50 and 100 yuan denominations. The 10 yuan contains around 1/10 ounce of gold, the 25 yuan contains 1/4 ounces of gold and so on. These bullion coins are produced in fairly large quantities for sale to investors world wide. However, it seems that China has also seen the interest in the Bi-metallic coinage of Europe and decided to produce several very limited sets of Bi-metallic pandas (from 1990 to present), unicorns (from 1994 to present) and the dragon-phoenix (1994 is the only year I know of since it was produced in honor of a royal wedding with the dragon representing the emperor and the phoenix the empress). These were likewise produced in various 10, 25 and 50 yuan denominations which represented the amount of gold in the center ring. The silver outer ring weight although not a consideration ran about 1/28 ounce for the 10 yuan up to 1/5 ounce for the 50 yuan. Seeing a new market opportunity, as has the Isle of Man with their King Arthur series, China has produced these Bi-metallics non-circulating legal tender (NCLT) coins in very limited quantity. Two distinct reasons for this come to mind. First, they are targeting a much smaller niche market. Secondly, they obviously hope to command premium prices for their uniqueness. Most sets were produced in quantities of 2,000 to 2,500 (except for some of the earlier releases which was produced in a limited quantity of only about 450 pieces). The 2,000 unit 1995 set was advertised as the worlds first all Bbi-metallic proof set containing the 10, 25 & 50 yuan denominations. As such, China's Bi-metallics have always been priced 1.5X - 2.0X higher than the equivalent single metal common bullion piece. So far, I have been able to acquire a couple of these Bi-metallics, but I have done it on the secondary market (that is sellers at coin shows). There I have been able to purchase them at values nearly equal the non-ringed gold coin prices. This I believe is partly because when the original buyer probably tried to sell it, he most likely found the buyers only willing to quote him bullion price for its gold content. The dealers I talked to found it difficult to account for the ringed variety any other way. As a result, the new owners (now the seller) were likewise willing to dispose of them at prices competitive with the other non-ringed pandas they had in stock (no added premium). As a matter of fact, one dealer even had a few discounted because he had been unable to sell them at the last 4 shows and he didn't want to keep them any longer. Under these circumstances, I can at least justify them as an acceptable investment and addition to my collection. I wonder how the numerous precious metal ECUs if they hit the secondary market will fare; because I have talked to several dealers that say they won't touch them because the are not coins, maybe medals at best and overall from their point of view -- they are simply very expensive junk. I guess as they say, "One person's junk is another person's treasure!". However, even at bullion prices these Chinese Bi-metallics are not inexpensive. I have wondered how these countries can continue to pump out so many each year and find buyers for them. Besides China, Pobjoy Mint has produced for the Isle of Man 5 ringed Bi-metallic coins in not one, but two, different combinations of gold and platinum and is selling the set for $1275 plus $7 postage, each. Now how many of us has that kind of cash laying around to spend on a hobby? Well, I was thinking about the need for some small coin investment lending company, THEN I see an advertisement from Panda America, the US distributor of Chinese coinage. They were offering their 1995 proof Bi-metallic set on an interest free payment plan. I called them for information on this $695 offer and found them willing to accept payments up to 6 months without interest. This is still a lot of money in a relatively short period of time, but I certainly must credit them for being creative and providing another alternative. I can not say I have ever seen a similar offer from another dealer or mint? The Mint of China seems to pride themselves in that... " They produce limited quantities to maintain value " They have a new design each year (however minor the change) " They have produced more Bi-metallic proofs than any other country. 5. Note from a non WBCC member.......By WBCC Focal Point A note from Bryan Ryker asking that I let everyone know his e-mail address (encased.coins@juno.com). He would enjoy hearing from anyone interested in encased coins. Over a five year period, Bryan did extensive research on Earl Fankhauser, "The Penny Man" of Fort Wayne, Indiana, USA. His book is 80 pages, telling the story of Earl Fankhauser's life and cataloging the 671 known different encased coins Fankhauser had made. Each encased coin is described in detail and is assigned a catalog number by city and state or province. Values are also given. Those interested may obtain a copy for $7.50 in US dollars (which includes postage within the USA) by writing to the Token and Medal Society (TAMS) at the address below. Outside the USA include another $2.50 for postage. TAMS is a non-profit organization dedicated to furthering the hobby. Bryan's research was donated to TAMS. Allow 4-6 weeks for delivery in the USA. TAMS 9230 S.W. 59 Street Miami, FL 33173 6. Bi-metallic Coindealer.........By Ray Lockwood, USA A USA dealer who recently featured Bi-metallic coins is Jay Woodside, owner of the Scotsman Coin + Jewelry Co. whose address is: Jay Woodside 11262 Olive Blvd. St. Louis, Missouri 63141 USA 7. WBCC Helpdesk.........is Larry Friemel The Worldwide Bi-metallic Collectors Club is proud to have a Helpdesk. Larry is waiting to help you when you want to know about a specific Bi-metallic or about Bi-metallics in general. E-mail: lfriemel@ccgate.hac.com 8. Joel Anderson Homepage......By Joel Anderson, USA When you want to visit my Homepage please use the following URL: http://web.coin-universe.com/janderson/ 9. Planning Bi-metallics...By several WBCC members The following Bi-metallics are planned in 1997 Canada 2 Dollar Polar bear, release date: end of January 1997 Great-Brittain 2 Pound, release date november 1997 Italy 1000 and 2000 Lire 1997 San Marino 500 Lire 1997 Singapore 5 Dollar, release date 10 January 1997 10. The WBCC competition is still on.........By Martin Peeters The Worldwide Bi-metallic Collectors Club (WBCC) is still on. To rememder, the question is: Who will get the FIRST 1997 Bi-metallic ? The winner will get the title "The most fanatic WBCC hunter". So, if you are the WBCC member who gets the first issued 1997 Bi-metallic, please E-mail me: martinp@concepts.nl 11. WBCC statistics.......By WBCC Focal Point Now we have 30 members it is nice to show you some statistics about the Worldwide Bi-metallic Collectors Club. The WBCC has established 14 september 1996 30 Members from 7 countries 17 From USA 5 From The Netherlands 3 From Canada 2 From Italy 1 From Australia 1 From Israel 1 From Mexico 26 members with an Internet connection 4 members without an Internet connection "See" you next week, Martin Peeters, WBCC Focal Point martinp@concepts.nl