is the seventh coin in the Perth Mint's Lunar Series, which the Mint launched in 1996 with the Year of the Rat. When the Series is completed, twelve coins, dated 1996-2007, will be minted. Production of all the 1-oz. gold coins is limited to 30,000 coins. The Year 2000 Gold Dragon was the first coin to reach its production cap. CMI believes the 1-oz Horse will be the second.
Although the Perth Mint's official brochure indicates a production limit of 50,000 for the 1-oz Gold Horse, the limit is 30,000. When the brochure was printed, it was the intent of the Perth Mint to raise the production limit to 50,000 coins, but the Perth Mint rescinded the increase. Additionally, the Perth Mint stated, in a press release, that the limit for the rest of the 1-oz gold coins is 30,000. This policy should make the Lunar Series even more attractive to collectors.
Investors have the opportunity to profit two ways by going with the Lunar Series 1-oz gold coins, by an increase in the price of gold and by an increase in the premiums. Going in, investors pay only a few dollars more than they would for Gold Eagles. However, Gold Eagles have little, if any, potential for premium increases. They are strictly bullion coins. The Lunar Coins, on the other hand, are sold mostly to collectors who are used to paying premiums for collector coins. CMI believes there are several reasons to expect the Lunar Series coins to achieve premiums.
First, the Perth Mint produces the most exquisite coins in the world. The Mint's coins are renown among collectors. In fact, CMI can categorically say that not one of its clients has been dissatisfied with the quality of Lunar Series coins that they have purchased.
Second, Lunar Calendar animals are immensely popular with Asians. All Asians know what Lunar Calendar year in which they were born. As Asians discover to Lunar Series coins, prices could be pushed higher in the secondary market as many of the coins will be collected, used in jewelry, and turned into novelties.
Further, in 2008, China will host the Summer Olympics. As those Olympics approach, we can expect a torrent of media hype about China, its land, people, and culture. More people will learn about the Lunar Calendar, and we can expect Lunar Calendar promotions of everything from trinkets to gold coins. And, the Horse, which is the 2002 coin, is the second most popular creature of the Lunar Calendar among Asians.
And, the horse is one of the favorite animals in the Western World. This is especially true in the United States, where we have been brought up on Western movies and where tens of thousands of Americans keep horses for enjoyment, from showing them to horseback riding. Additionally, horse racing is one of the most popular sports in America, with the Kentucky Derby being its pinnacle.
the Dragons sold out, CMI recommends that investors go with
the Year 2002 Horse, which we believe will be next 1-oz Lunar
Series coin to reach its production limit. Year 2001
Gold Snakes are still available also, but the
snake is not an endearing creature to most people. [Yet, the
artwork for the
Snake is perhaps the best of the Series.]
Investors putting together sets of the Lunar Series coins will
want coins from each year.
CMI recommends that investors seriously consider the Lunar Coins when investing in gold. In the past, collectible coins have risen to very high prices during precious metals bull markets. Actually, sometimes those markets have overheated, and collectibles have achieved unrealistic prices. We are confident that the metals have turned the corner and are headed upward. If we are right, the Lunar Series coins could do very well.
Other Horse Years include 1990, 1978, 1966, 1954, 1942, 1930, 1918, and 1906.