Fake SJC Gold Bullion Returns to Market

Gold bullion copying SJC, the country’s most popular brand name, has recently re-emerged on the market, dismaying both gold traders and the bars’ authentic producer, Saigon Jewelry Co.
While forged gold bullion used to be produced only under the form of the 1/5-tael, or 0.24 ounce, bar, it is now circulated in the form of one-tael bullion, according to gold traders.

Faking SJC gold bullion will help gold smugglers regularize their contraband raw material gold, and rake in huge profits.

With SJC gold bullion chosen as the national gold brand name, Saigon Jewelry Co has called on the State Bank of Vietnam and police to probe into the case.

Many gold shops in the Mekong Delta provinces have reportedly refused to buy gold bullion, fearing that the metal has not been authentically produced by SJC.

On the fake gold bullion, the first letter of the word ‘tael’ is embedded on its surface in a slightly larger font than that of the authentic bars, according to an owner of a gold shop in Ho Chi Minh City’s District 8, who currently has an allegedly fake SJC gold bar.

“Its purity is also less than 99.99 percent, which an authentic SJC gold bar is supposed to have,” he added.

The fake bullion is made in such a sophisticated way that it is almost impossible to tell it apart from the real deal with the naked eye, gold traders said, adding that even the distinguishing differences on the fake gold bullion have all been rectified.

Gold shop owners are now more wary of customers wishing to sell SJC gold bullion than ever before, and all refuse those with old or torn packaging.

“We only earn a little profit by buying SJC gold bullion. But a fake gold bar will cost us a huge loss,” the owner of a gold shop in District 1 said.

Whopping profits

In response to the market concern, Saigon Jewelry Co said the root of the problem stems from the fact that domestic gold prices are still VND2 – 3 million higher than their global counterparts.

“With such a huge price difference, gold smugglers are willing to spend millions of US dollars investing in machinery to create fake SJC gold bars, as they will soon recoup the investment,” a company chief official who requested anonymity told Tuoi Tre.

Experts also said narrowing the price gap is the only solution to the issue.

“Successfully producing a fake SJC gold bullion will bring in a VND3 million profit to the producer, and with 1,000 bars sold, the figure is an enormous VND3 billion ($143,888),” a CEO of a gold company, who preferred to be anonymous, revealed.

Demand leads China to increase 2012 Panda bullion mintages

Pandas have notoriously sensitive populations, but the coins depicting them are proliferating at least: amid soaring demand the People’s Bank of China has announced higher mintages for 2012 Panda bullion coins.

The 2012 mintages for the coins will in some cases double or triple compared to 2011 mintages, according to the June 20 announcement.

The decision to increase mintages was reported by state news agency Xinhua and confirmed by a spokesperson for China Gold Coin Corp., the distributor of the coins in China. PandaAmerica, the California-based distributor for the United States, also confirmed the increased mintages for 2012, the second consecutive year China has raised mintage figures for the Panda precious metal bullion coins.

The stalwarts of the program are the 1-ounce .999 fine silver 10-yuan coin and the 1-ounce .999 fine gold 100-yuan coins; the mintage for the silver 10-yuan coin will double from 3 million pieces to 6 million coins, while the mintage limit for the 1-ounce gold coin is raised from 300,000 coins to 500,000 coins.

Four different sizes of fractional gold bullion coins — the 20th-, 10th-, quarter- and half-ounce pieces — will see the largest increases, rising from mintage limits of 200,000 in 2011 to 600,000 next year, per size.

“Chinese investors have rushed to buy precious metals this year to hedge against rising inflation,” according to the Xinhua report.

In the first quarter of 2011, China became the world’s largest market for gold coins and bars for investment, according to a May 19 report from the World Gold Council, a trade group.

China currently issues 10 different Panda coins annually. The six pieces for which mintage increases have been announced are issued as bullion pieces. Four additional coins, 5-ounce and kilogram sizes of both silver and gold coins, are issued in Proof versions and were not discussed in the recent announcement; their mintages will not be revealed until later this year.

That doesn’t mean they will immune to increases; mintages for eight of the 10 Panda coins (bullion and Proof combined) rose from 2010 to 2011, in some cases dramatically.

The mintages for small Panda gold coins, those of half-, quarter-, tenth-, and 20th-ounce sizes, were raised from 120,000 each in 2010 to 200,000 each with the 2011 coins, a 67 percent increase.

Mintages for some of the large versions were also raised: the kilogram gold coin went from a mintage of 200 pieces in 2010 to a 300-coin mintage maximum this year.

The kilogram-sized silver 300-yuan coins for 2011 have a limit of 8,000 pieces, twice the 2010 mintage, and the maximum of 20,000 5-ounce 50-yuan silver coins compares to 10,000 for 2010.

But the biggest increase for 2011 was registered for the 1-ounce silver size, as the 10-yuan coin, which had a mintage maximum of 800,000 pieces in 2010, saw its maximum shoot up to 3 million pieces, a 275 percent increase in 2011.

The only mintage limits not increased in 2011 were the 1-ounce 500-yuan and 5-ounce 2,000-yuan gold coins, remaining stable at 300,000 pieces and 1,000 pieces, respectively.

The accompanying table lists full details of the rising mintage limits from 2010 through the announced limits for 2012.

The obverse of each Panda coin shows the Hall of Prayer for Good Harvests (the Temple of Heaven). The reverse design has changed every year since the Panda made its debut, except for 2002, and shows a different design of a panda or pandas.

China’s Panda coins are minted at the Shenzhen Guobao Mint, Shenyang Mint and Shanghai Mint, and are generally not identified with a Mint mark.

2010 Chinese Gold and Silver Pandas

The 2010 Chinese Gold and Silver Pandas have been issued by the People's Bank of China. This year's program consists of ten different issues, including seven gold and three silver coins with a new reverse design. The high quality bullion coins have become popular around the world.

The Gold and Silver Pandas feature a common obverse design depicting the Hall of Prayer for Good Harvests of the Temple of Heaven located in Beijing, China. An inscription in Chinese indicates "People's Republic of China" along with the year "2010".

The new reverse design for 2010-dated coins features two pandas at play. The face value of the coin, bullion weight, and purity also appear. Each year, the coins have featured a different Panda themed design. All coins have a purity of 99.9% fine gold or 99.9% fine silver.

2010 Gold Panda Coins

This year's Gold Panda coins will be available in weights ranging from 1/20 oz to 5 oz. Each weight carries a different fave value and has a stated maximum mintage. The details of each coin are below:

Weight	Diameter	Face Value	Maximum Mintage
1/20 oz	14 mm	20 Yuan	120,000
1/10 oz	18 mm	50 Yuan	120,000
1/4 oz	22 mm	100 Yuan	120,000
1/2 oz	27 mm	200 Yuan	120,000
1 oz	32 mm	500 Yuan	300,000
5 oz	60 mm	2000 Yuam	1,000
1 kg	90 mm	10000 Yuan	200

2010 Silver Panda Coins

This year's Silver Panda coins will be available in three different weights from 1 oz to 1 kg. Each coin carries a different face value and has a stated maximum mintage as included below:

Weight	Diameter	Face Value	Maximum Mintage
1 oz	40 mm	10 Yuan	800,000
5 oz	70 mm	50 Yuan	10,000
1 kg	100 mm	300 Yuan	4,000

The 2010 Gold and Silver Pandas were first issued by the People's Bank of China on November 30, 2009. The coins are minted by the Shenzhen Guobao Mint, Shenyang Mint and Shanghai Mint, and solely distributed by China Gold Coin Incorporation.

2009 China Commemorative Silver and Gold Panda Coins

Each coin’s reverse bears the same Panda design as depicted on the 2009 Gold Panda and 2009 Silver Panda bullion coins. The new commemoratives, however, feature a ring surrounding the pandas with the inscription "30TH ANNIVERSARY OF THE ISSUANCE OF THE CHINESE MODERN PRECIOUS METAL COMMEMORATIVE COINS."

The obverse design of both coins has the traditional image of the Hall of Prayer for Good Harvest in the Temple of Heaven in Beijing.

The central bank said it would issue a maximum of 10,000 gold coins in 1/4 oz size, with a diameter of 22 mm and a fineness of 99.9%. Up to 300,000 of the 1 oz silver coins are to be struck with a diameter of 40 mm and the same bullion 99.9% purity. The legal tender face value of the gold and silver commemoratives are 10 and 100 yuan, respectively.

Panda coins are among the most popular in the world, featuring adorably detailed images of playful pandas that change annually. Although the Chinese precious metal coin program dates back to 1979, the Gold Panda coin design was first introduced in 1982 while the silver version debuted in 1983.