MALAYSIAN INTEREST IN PHILATELIC ARE DECLINING

PENANG STAMP FAIR 13TH - 16TH SEPTEMBER

The reason for the Malaysians philatelic interest are declining because POS Malaysia kept reprinting commemorative stamps when the initial mintage ran out of stocks.

Back to the years before POS Malaysia was privatized about a decade ago when the entity was fully owned by the Malaysian government the interest in philatelic was very strong among avid collectors. Long queues can be seen lining up the street from POS Malaysia during the first day of launching of commemorative stamps. During those days it has limited mintage between 20,000pcs to 50,000pcs of commemorative stamps being printed and once sold out it was never reprint again and there were strong secondary market for these stamps.

After POS Malaysia been privatized and listed on the stock exchange in Bursa Malaysia everything changes and "profits" was the main priority. Before the date of launching new stamps to mark an occasion POS Malaysia will announce that they will print limited numbers of stamps only (eg: 20,000pcs) to create a rush of demand to the public and once they have sold out the commemorative stamps on the first day POS Malaysia will secretly reprint the stamps again. 

Reprinting stamps is like printing money and that is very easy to make huge profits for POS Malaysia. For instance once you buy a single piece of RM5.00 stamp and kept inside your stamps album POS Malaysia has profited 100% gain from you ! Just imaging the profits of POS Malaysia when the whole nation stamp collectors bought commemorative stamps from POS Malaysia. It is huge and easy money been made !

However this practice of reprinting was uncovered and has irked the collectors and people has loss interest big time in philatelic and now you can go to POS Malaysia main office to buy those yesteryear series still available at face value. POS Malaysia does not understand that once you lose the secondary market people have loss the interest in philatelic and also the collectors.

Stamps collectors has switched interest to Numismatics - Banknotes and Coins collection. This is one of the many reasons that have contributed into the rise of Malaysian numismatics.

Shame on you POS MALAYSIA !

Only a handful of people came to visit the stamp fair.

POS Malaysia counter selling those yesteryear series and personalized stamps.

Happy Reading.

Andrew

FIRST BANKNOTES AUCTION BY BANK NEGARA MALAYSIA

Date : Saturday, 27 September 2014

Session 1 - 10.00 a.m. - RM1 & RM5 Banknotes
Session 2 - 11.30 a.m. - RM10 & RM20 Banknotes
Session 3 - 12.30 p.m. - RM50 & RM100 Banknotes

Venue  : Auditorium, Sasana Kijang, Bank Negara Malaysia, Jalan Dato’ Onn, 50480 Kuala Lumpur.

Registration : 9.00am onwards

Demonstration and Understanding of Banknote Auction Process. Light refreshment will be served.

Public Viewing :  MNP’s Kuala Lumpur Office. Thursday, 18 September 2014, 10.00 a.m. to 2.00 p.m.

MNP’s Penang Office. Saturday, 20 September 2014, 10.00 a.m. to 2.00 p.m.

Initial Deposit : RM300.00

Buyer's Premium : 15% to be payable in addition to the hammer price.
Successful bidders must collect the Lots from MNP’s Kuala Lumpur Office
within seven (7) working days from the date of auction.

Auctioneers : MNP Auctioneers

This will be the first ever banknotes auction held by Bank Negara Malaysia. The lots of banknotes to be auctioned are the present Malaysia 12th Series paper and polymer notes for all the denominations from RM1, RM5, RM10, RM20, RM50, RM100 for :-

“Single Ladder”
The more commonly known combination of serial numbers, e.g EG 1234567. Whereas “Super
Single Ladder” simply means the alphabetical prefix in the front is the same, e.g FF 1234567.
“Reverse Single Ladder” just means that the combination of numbers are in reverse, e.g
EG 7654321 and with the same alphabetical prefix it would be called “Super Reverse Single
Ladder”, e.g FF 7654321.

“Low Numbers”
These are serial numbers typically with either single or double digits at the back of the sequence, e.g
AB 0000001 or AB 0000010. However, if the alphabetical prefix in the front is the same, it will be
considered as “Super Low Numbers”, e.g BB 0000001 or BB 0000010. The more sought after
numbers are typically the numbers with single digits at the back of the sequence, which when
available in a set of 10 pieces, fetches an even higher demand. This combination is known as
“Set-of-10”, e.g AB 0000001 to AB 0000010.

“Solid”
A combination of serial numbers where all the numbers are the same, e.g AD 8888888. Higher
demands have been recorded for the “Super Solid” which has the same alphabetical prefix in the
front, e.g CC 8888888.

“Ten Million”
This particular note is said to fetch a very high demand amongst collectors due to its uniqueness. The
typical Malaysian banknotes denominations have only seven digits, but this has eight digits, e.g
AA 10000000.

This auction is good for all collectors to have the chance to obtain these special numbers through auction that open to the public, otherwise these special numbers and prefixes are being monopolized and controlled by "certain people" that have "close relations" with the bankers therefore they are the ones that control the prices.

Now everyone stand a chance......

I would like to say "Syabas to Bank Negara Malaysia" !

Happy Reading !
Andrew

MALAYSIAN COLLECTORS VERSUS SPECULATORS

During the good times when the stocks exchange were making new highs almost every week easy money were make from the stock exchange and everyone were more generous in spending money in numismatics thus driving up the prices. Those non collectors were attracted with making fast and easy money also jumped into the numismatics band wagon and became collectors or speculators and everything rises. Numismatics are more tied to the economy or level of discretionary income and everyone were happy with the hobby while speculators kept speculating and push up the prices and collectors were delighted with their increasing value of their collections. What hobby are more rewarding than numismatics huh ?

What happen to the "numismatics economy" during slow months ? Numismatics do share some common similarity with the stock market and that makes it more interesting to be in this hobby. It has the speculators and collectors that kept vintage and expensive banknotes/coins (blue chips in the stock exchange) and it has its up and down trend too.

During the slow months speculators that unable to hold on their inventory of banknotes/coins (mostly are modern replacement notes) will liquidate their stocks thus flooding the market and weaken the prices. And those small time speculators follow suits to cut-losses afraid the prices will drop further and this has caused a chain-reaction to other speculators too. The greatest impact were on modern replacement notes but nevertheless the negative environment also affect other vintage notes too.

Whereas the "smart money" will come pouring into vintage notes/coins from the collectors because they knew that is the best time to buy when everyone are selling and rare notes/coins will surface during bad times and in contrast it was very hard to find rare vintage notes/coins during good times because collectors held them tightly in their collections and they does not need money.

So you ought to know the timing when you should buy and certainly you dont buy when everyone are buying along side with you.


Below here are only some of the selected few of my banknotes which came back from PMG recently.

Happy Reading !

2007 2008 RM50 50TH ANNIVERSARY OF MALAYSIA INDEPENDENCE (MERDEKA GOLDLINE) 4 ZEROES AA0000 XXX

These are my collection of 2007 2008 RM50 Merdeka Goldline of 4 zeroes that are very scarce extremely hard to find. There are only 899 pieces available for 4 zeroes in the front of the serial number out of the total mintage of 20,000 pieces issued by BNM (Bank Negara Malaysia) to commemorate the 50th Independence of Malaysia in 2007.

All graded as PMG 67 EPQ

Happy Viewing.

Andrew

RM1 ZB AND RM5 ZB REPLACEMENT NOTES REVISIT

Amazingly the current price of 2012 RM1 Zeti "ZB" replacement note surged to RM700.00 each thus prompting me to review this banknote that i have blogged before please click on the link here ( RM1 ZB ).

Serial no. ZB 0134990

The reason for its rise attributed to scarcity despite the huge mintage of 134,990 pieces issued last year 2013 before Hari Raya Adilfitri. Many claimed it did not came out in a stack of 100pcs but only few pieces was slotted in between stack if you're lucky to find it.

However while i was browsing the web last night and i came across a photo of RM1 ZB in a stack of 100pcs from another blog (as picture shown below).

Does that mean stacks of 100pcs do exist from BNM (Bank Negara Malaysia) that not many people was aware off but only very few people knew about it and was being hoarded or cornered by them since it has low face value of only RM1.00 thus making it very easy to hoard ? And once the price is high it will come out slowly to the market with gradual controlled release only on low serial numbers (of course). This will artificially manipulate you to believe that the mintage was low with "2 zeroes" on the front but in reality it was not ? Well this is only my hunch and I let YOU be the judge.

However the currently price of 2012 RM5 Zeti "ZB" replacement note was consolidating at RM68.00 as at today but before it shot up to RM80.00 two months ago despite having low mintage of 60,000 pieces compare to RM1 ZB. 

The RM5 ZB came out in stacks unlike the RM1 ZB. Could it be because it was not being targeted to hoard because of its higher face value and it takes five times more capital to be hoarded ?

Please tell me your thoughts.

Happy reading.

Andrew 

MALAYSIAN NUMISMATIC COLLECTORS ARE SPECULATORS

Latest update : 13th Aug 2014

Two pieces of RM5 "ZC" was on auction on Ebay Malaysia and just ended with realized price of RM10.25 each and RM10.75 each with 5bids and 6bids respectively.

So by now you should know where you stand in the speculation chain don't you ?




Date : 11th Aug 2014

Generally speaking Malaysian numismatics collectors are pure speculators and they are not collectors at all. Majority of them like to speculate on replacement notes akin to buying penny stocks in the stock exchange and hoping to make quick bucks.

The most recent replacement note which came out to the market was the RM5 prefix "ZC" replacement just days before the Hari Raya Adilfitri on 28th July 2014. The price was sold at RM80.00 per piece (with ordinary serial numbers nothing special) and today at the time of writing the price fell to RM18.00 per piece just barely 2 weeks.  Modern replacement notes carry no numismatics value and the prices are solely base on "demand and supply" and once the demand vanishes so as to the price.

Many collectors like to speculate on replacement notes because they hope to make fast money but not everyone are so lucky. Obviously the last person in the speculation chain will lose out and first person on top of the chain will gain the most. Not everyone could be on top of the chain one must have good relationship with the bankers to receive the supplies with the lowest cost possible close to the face value of the banknotes. Usually these bankers work on "buddy-buddy" system with the dealers and both parties need each other.

Most dealers don't have much numismatics banknotes/coins (eg :- Straits Settlements, Malaya, Sarawak, British borneo and etc.) stocks left in their inventory and it is not easy to replenish your stocks once you have sold them and this dilemma are faced by every full time dealer. But then they still have their monthly commitments and cost to cover and they need to sell something to make profit, therefore to trade replacement notes is a best way to make fast money as there are frequently new replacement notes were issued in a year.

Whereas for collectors the approach are different like myself and time is not against us but time is on our side in contrast, if i don't sell anything in a year i still live happily and my life style still maintain. However i do have an ebay store to sell my excess stocks and to make some profit and so that i could use the money to expand and upgrade my personal collections.

I consider myself to be 70% collector and 30% seller. How about you ?

Happy reading.
Andrew

STRAITS SETTLEMENTS, MALAYA AND BRITISH BORNEO, MALAYA AND BRITISH ADMIN BOARD OF CURRENCY

Straits Settlements 1935 $1 KGV PMG 64  EPQ

There is nothing special about this banknote from the era of Straits Settlements but its "EPQ" designation from PMG make it stand out. It is extremely difficult to obtain EPQ for any Straits Settlements banknotes because of its "old age" and coupled with the tropical climate in Malaysia making it almost impossible to keep its condition pristine. You can only find the good ones from collectors in the United Kingdom. One must remember that once our forefathers were laborers mostly working in tin mines or as farmers with very low salary and could not afford to keep these banknotes as "collection" in their album (there was no such album existed).

This banknote was instantly sold when i listed it on Ebay Malaysia. The buyer bought from me without hesitation because of its rare "EPQ" designation.

Malaya & British Borneo 1953 $100 QE II PMG 30 NET

I couldn't afford to collect the 1953 $100 QE II in "UNC" condition hence i have to satisfy myself with VF condition as a consolation until the day come when i'm ready for an upgrade.

Malaya British Administration 1940 $10 (purple colour) KGVI PMG 20 NET 

This banknote was issued on 1940 before it was phased out by new currency in 1941 (red colour) hence making it very scarce and much sought after by collectors.

The first notes consigned by the Board of Commissioners of Currency Malaya were for the value of $1, $5 and $10 and dated 1st January 1940. Of these issues, a large quantity of $1 notes (1940 Green colour) and $5 notes (1940 blue colour) was despatched to Malaya before the Japanese invation on 8th December 1941 but were all seized by the Germans. 

When British forces reoccupied Singapore in Septemeber 1945, they found all the abandoned notes of this series (1940 series) except for a bundle of one thousand of the notes captured in Penang, in the vaults of the Japanese sub-treasury. Nevertheless, all stocks were destroyed in 1946, as it was feared that the notes seized by the Germans might be handed over to their Japanese allies, ready to be passed into circulation when the notes became current. There is no evidence of these notes ever reaching Malaya. During the Japanese Occupation, the Japanese government issued the famous banana notes to replace the Malayan dollar as legal tender.

British forces landed at Penang and Singapore on 3rd Septemeber 1945 and gradually reoccupied the whole of Malaya. It was decided that no value should be accorded to the Japanese banana money.

However the $10 1940 (purple colour) was uncompromised and eventually went into circulation after the war and remained legal tender until it was phased out by the new currency - 1941 $10 KGVI red colour. This banknote was in circulation for only a year.

Happy reading !

Andrew