Dow Jones plunged 2 percent on 20 August and seemingly continued its slide on 21 August as uncertainty over the Fed’s timing on interest rate hike and global growth weighed on investors’ confidence in the financial markets. Weak data on China’s growth also dealt another mighty blow to investors and heightened fear on the world number two economy. Given the volatility in the stock market, it is no surprise that investors turn to gold.
Widely seen as a safe haven, investors drove gold price up 7% from a 5-year low in 5 August. This development is a reverse on the recent bearish sentiment on precious metal. According to World Gold Council, demand on gold dropped 12% on a 6 year low in 2Q 2015. The gold market also faced weakness from jewellery buyers in China and India. However, it should be noted that the 2nd half of the year would be more encouraging given the anticipated responses from investors in view of the recent price correction.
Investors seeking wealth protection should diversify their assets and allocate a certain portion of their wealth in gold and silver. The current window is a good opportunity for wealth builders to adopt buy gold on the cheap and preserve wealth. In Singapore, if you want to buy gold bar or coins, you can easily place your order online in BullionStar and withdraw the physical metal from their store. BullionStar offers two different options for buying and storing precious metals.
1) Bullion Products
Segregated allocated bullion products held under legal ownership. If you buy a 100 gram PAMP Suisse gold bar, you get one identifiable serial-numbered PAMP 100 gram gold bar stored separately from BullionStar’s own inventory.
Your bullion products are inspected, photographed and stored securely under your legal ownership. When we have received your payment, you can sell, audit or physically withdraw your bullion any time. If you would like to physically audit or withdraw your bullion, you can visit us at 45 New Bridge Road or have your bullion shipped to you.
The Live Audit Report lets you audit your metal online in real time. The Live Audit Report is a list of all holdings for all vault account numbers storing precious metals with BullionStar as storage provider. You can thus verify the existence of your bullion with its serial number in the Live Audit Report. All other customers can likewise verify their bullion holdings through the report.
Storage is FREE until 2016 with the most competitive rates in the industry thereafter.
2) Vault Gram®
Vault Gram® is BullionStar’s trading solution for physically backed up gold, silver and platinum. The price premium and spread for Vault Gram® is lower than for most bullion products.
When you buy a Vault Gram® of gold, silver or platinum, you get one Vault Gram® as represented in your account under My Vault Storage®.
BullionStar backs up the Vault Grams with an equivalent or larger amount of physical metal. Even though Vault Grams are not stored under your name directly, the bullion is backed up by physical precious metals.
Since BullionStar often holds large bullion bars such as 1 kg gold bars backing up Vault Grams, and since larger bars have lower price premiums than smaller bars, you are able to purchase Vault Grams of gold, silver or platinum at a low a price premium and trade at a low spread.
Delivery can’t be requested for Vault Grams as a 1 kg gold bar can back up 1000 Vault Grams owned by different customers.
There are no fees for buying or selling Vault Grams.