SG Wealth Builder is pleased to catch up with Luke Chua, Chief Operating Officer of BullionStar on their latest product offering – Bullion Savings Program.
1) What are the key features of Bullion Savings Program? You can actually convert the grams in BSP to physical metals?
The key features of the BSP are that it allows customers to save and/or trade in precious metals. With the BSP, customers can buy BSP Grams of Gold, Silver or Platinum that is fully backed up by physical precious metals in BullionStar’s stock inventory. Grams in the Bullion Savings Program (BSP) are fully allocated physical precious metals. Our BSP Grams are available in Gold, Silver and Platinum for a low price premium and a low spread. This provides customers with a cost-efficient way to start saving in precious metals.
BSP Gold Grams can be converted in increments of 100 grams to 100 gram PAMP Gold Cast Bars. BSP Silver Grams can be converted in increments of 15,000 grams to 15 kg Heraeus Silver Bars. BSP Platinum Grams can be converted in increments of 1,000 grams to 1 kg Heraeus Platinum Bars. BSP Grams can be converted to physical bullion bars at any time or sold back to BullionStar at any time.
2) Fundamentally, what is the difference between BSP and the previous Vault Grams?
Fundamentally, the BSP is superior to Vault Grams because customers are now able to convert the BSP grams into physical bullion bars in the above mentioned increments. This is the major difference to Vault Grams.
3) Any restrictions for foreigners residing in other countries?
There are no restrictions whatsoever. Foreigners as well as companies and other entities are welcome to buy BSP Grams.
4) Is this the first-of-a-kind of bullion scheme in Singapore? To address the transparency concern, I understand that BullionStar publishes daily report of total amount of bullion saved on the BSP compared with the physical bullion held in stock by BullionStar?
Yes, we believe this is a first-of-its-kind in Singapore where all grams purchased are fully backed up by physical precious metals at all times. It is important to state that this is totally different from other paper gold investment or savings schemes offered in Singapore that have drawn negative criticism – and rightly so – in the media, due to their fraudulent nature. With the BSP, you can convert your BSP grams to physical bullion bars at anytime in the above mentioned increments, which gives our customers even greater confidence in the full backing and allocation of precious metal when purchasing BSP grams. Logged in users can furthermore check the exact amount of total outstanding grams in the BSP Program for all metals and their respective backing at https://www.bullionstar.com/vault/bsp.
5) Is this scheme regulated or fell under any investment product supervision by Monetary Authority of Singapore?
No, we have sought legal advice to ensure that this program is defined as physically deliverable bullion and is thus unregulated.
6) What advantages can Singapore wealth builders expect from this scheme vis-a-vis to parking their cash in the banks?
SG wealth builders can save in a tangible asset that has history as its track-record. As all currencies have lost 99% or more of its purchasing power over the past one hundred years, saving in precious metals is sound and safe. One important advantage with the BSP program compared to small bullion bars/coins is that the BSP grams have a low premium making it possible to accumulate bullion in a cost efficient manner.
SG Wealth Builder