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Tags: China Stock Market, Chinese Demand, Olympic, Post-Olympic Hangover In Chinese Demand, world stock market

Don’t Expect A Post-Olympic Hangover In Chinese Demand

Posted on 08 August 2008 by Alex

The lead up to the Olympics this week in Beijing has seen a time of immense activity levels in the Chinese capital as facilities and infrastructure had to be built. But the scale of activity left some market participants worried about the potential for a post-Games economic hangover.

Barclays Capital argues a significant slowdown in activity levels would be unlikely in coming months, saying there is scope for stronger demand growth in some sectors of the economy late in the September quarter and into the end of the year.

In part, this view reflects the shift in the driver of the Chinese economy from exports to domestic demand. This has been seen over recent months as a result of government policy aimed at generating strong income growth and an improved distribution of income throughout the economy. Such policies have produced ongoing expansions in industrial production, retail sales and fixed asset investment.

To fully understand the trend in commodities demand, the group suggests it is also necessary to take a more microeconomic view as each market has different characteristics and fundamentals at present. As an example, Barclays suggests the pre-Olympic shutdown of a number of industries related to the metals market implies a post-Games ramp-up of output as operations get back to normal.

As well, de-stocking in the copper and aluminium markets simply cannot continue forever. This leads the group to expect some spot market buying in coming months as activity levels return to pre-Games levels and stockpiles are at least partially restored to previous levels.

In the oil market, policies in recent times have essentially been focused on ensuring sufficient supply during the Games. Still, there are no signs supply has risen to substantially above likely demand. This makes it unlikely there will be any stock overhang once the Games are completed, especially given car owners will be free to return to the roads without the current restrictions.

The other positive point for commodities the group makes, is that even without the Olympics, Beijing accounts for only 2% of China’s GDP growth. This means there are still a huge number of large scale infrastructure and development projects being undertaken throughout the rest of the country. This suggests demand for commodities will remain high, particularly in Shanghai, where Expo 2010 is to be held. This activity should ensure solid post-Olympic commodity demand, in the group’s view.

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Tags: 6-coin Gold, 6-coin Gold and Silver Proof Sets, Beijing 2008 Olympic Games, Olympic, Olympic Games, Olympic Games Record

An Olympic Games Record May be Broken

Posted on 08 August 2008 by Alex

I’m not talking about the decathlon or gymnastics. I’m talking about the incredibly beautiful 6-coin Gold and Silver Proof Sets commemorating the Beijing 2008 Olympic Games! Series I and II have already sold out in China, and the small U.S. allocation of the Series II set will more than likely be gone before the first U.S. athlete competes in China. That just may set a new record for the sale of Olympic Games Commemorative coins.

And these aren’t just coins—they’re works of art in gold and silver and a wonder to behold. I know, because I’ve actually had the opportunity to see them firsthand. If I’m any judge of beauty and craftsmanship, the artistry of these Gold and Silver Proofs will more than exceed any expectations you might have.

When you consider that there are 140 million coin collectors in this country, many of whom are trying to get their hands on these Series II Six-Coin Sets—and millions more Olympic Games fans lining up for their sets—it’s easy to understand that those who procrastinate or wait until the Games actually start will literally be left in the starting blocks.

Take my word for it. This might be your only chance to actually own a part of the Beijing 2008 Olympic Games history—and what a historic event this promises to be! More than $40 billion dollars have been spent by China in preparation for their moment on the world stage. They’ve obviously pulled out all the stops—and this 6-coin Gold and Silver Proof set is no exception.

Now that I’ve piqued your interest, you’re probably wondering how to secure this Series II set before they’re gone. I wondered, too. Thankfully, a friend of mine put me in touch with Nick Bruyer, CEO of First Federal Coin Corp and world-renowned coin expert. It turns out his company is one of just two U.S. distributors for these sets. A man of few words, Nick simply said “Call us right away. With each day that passes, our small allocation gets smaller.”

Wouldn’t it be nice to be relaxing in your living room this August, watching the drama of the Games unfold and knowing you’ve secured your own Olympic Games gold and silver? Of course, once the Games are over you might be able to locate this Proof set, but without a doubt the price will likely be much higher than the current official price Nick’s company is asking.

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