Saturday, August 23, 2008

The Power of Beijing 2008 Olympic Banknote

Recently, I met up with a banknote dealer, asking for the market value of the 10-Yuan Beijing 2008 Olympic Banknote that issued by People's Bank of China (PBOC) in July 2008. It came to my surprise that this banknote has appreciated so much so that it now costs about RM700 (USD225) to own a piece of this commemorative note. Searching through the auction website, I generally figure that that should be it current market value.

The Front features the "Bird Nest" of National Stadium and the official emblem of Beijing 2008 Olympic Games

The Back features a statue of a Greek sculptor Myron's famous work "Discobolus" (discus thrower) and the year 2008 written in Arabic script

What has caused this 10-Yuan banknote to escalate 150 times of its face value in less than 2 months time? To answer this, we have to go back to the fundamental of economic theory : the force of supply and demand. Image that the whole Republic of China has population of 1.4 billion and only 6 million limited edition of 10-Yuan commemorative note that issued to celebrate the Beijing Olympic. This has not taking consideration of many banknote collectors around the world have aimed to add this wonderful piece of banknote to their collection album.

The China Daily reported that Chinese people queue up overnight to buy the Olympic Banknote at 300 bank branches in Beijing. The queue was also observed in Nanjing and Jiangsu province. Many of the Chinese people are proud with the Olympic Games that held in Beijing and wanted to own of a piece of this commemorative banknote as a souvenir.

People queue up to buy Olympic banknotes at a bank in Nanjing, Jiangsu province [China Daily]

The bottom line is the value of a banknote can appreciate so much and so fast than what you can image. This is what we call the Power of an Olympic Banknote and also the Power of Banknote APPRECIATION.

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