Category: Gold; silver

The Myths about Gold Bullion

This article is extracted from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices.

Despite the surge in financial risks during the Great Recession, gold bullion continues to be absent in most institutional and individual investment portfolios. Global pension funds and insurance companies with trillions of dollars’ worth of assets continue to overlook gold as a form of sustainable wealth protection insurance. Many individuals have also misunderstood gold and ignored the substantial benefits of owning gold. All these misconceptions are due to the prevailing myths about gold bullion ownership.

One of the top myths is that gold is a bad investment compared to equities. This myth seems to have its roots in the 1979-1980 rally when gold reached $850 per ounce. Those who had bought gold during this peak cycle would have to wait for about twenty-eight long years in order to break even. However, those who bought gold on 15 August 1971, when President Nixon cut the link between gold and the dollar, would have a different story to tell. Gold was priced at $38.90 per ounce and those who purchased at that time would have enjoyed a gain of about 5000 percent, surpassing Dow Jones gain of about 1500 for the same period. So the moral of the story is, if you buy any form of investment at a cyclical peak, you will have to wait a long time to break even.
When we talk about gold, it is important to differentiate between paper gold and physical gold. Paper gold refers to Exchange Traded Funds (ETFs), gold shares or options and futures. These products are better suited for speculators or traders seeking fast returns. There are risks involved for paper gold, such as counterpart risk. Physical gold refers to bullion –

BullionStar Singapore’s Gold & Silver Products

BullionStar offers brand new gold bars from well-renowned LBMA certified producers. The manufacturers BullionStar works with include Heraeus and PAMP Suisse.
Renowned for 160 + years, BullionStar’s partner mint Heraeus produces gold bars from 1 gram to 1 kilogramBullionStar is also proud to offer bullion products from PAMP Suisse, one of the world’s leading bullion brands well known for its attractively designed products.

Silver Bars are available in sizes from 31,1 gram (1 troy oz) to 31,1 kg (1000 troy oz). BullionStar offers different LBMA certified brands including Heraeus, PAMP Suisse, Royal Canadian Mint & Johnson Matthey bars.
For a larger investment in silver, BullionStar offers very attractive silver bars in the sizes of 1 kg, 100 oz and 1000 oz.

Even for the astute investor, it might be worthwhile to also consider gold coins rather than only gold bars. Some of the following advantages can be attributed to gold coins compared to gold bars.
– Coins are more suitable in a scenario where precious metals return as money or means of payment.
– Small units carry higher premiums when shortages appear.
– Coins can be sold or consumed individually.

BullionStar carries a wide assortment of different gold coins in different sizes.
Silver coins is the most popular investment in silver. A lot of people choose to buy e.g. a monster box of 500 silver coins rather than a few large bars thus making coins a good alternative also for larger investors. Silver Coins are also a popular gift and due to the cheap cost of silver compared to gold, it is possible to hold a substantial amount of silver for a low cost.

BullionStar offers all the popular brands of silver coins such as Silver Eagles and Silver Maples.

The Silver Bull Market: Investing in the Other Gold

In The Silver Bull Market: Investing in the Other Gold, Shayne McGuire examines the vital investment considerations about silver alongside the significant drivers of the metal’s bull market. Although silver moves closely with gold in financial markets, it differs from its sister metal in that more than half of demand is derived from multiple industrial processes.

While its significant reliance on film photography has ended, today silver’s industrial demand is driven by technological progress (brazing alloys and solders, smart phones, tablets, plasma panels and new applications like silk-screened circuit paths and radio frequency ID tags); photovoltaics (solar panels); and new medical applications (silver is both biocidal and highly conductive).

Though Warren Buffett disdains gold for its lack of utility, he regards silver differently: in the late 1990s, he purchased 130 million ounces, one-fifth of global production at the time. After outperforming virtually all other investment classes for more than a decade, gold is being reincorporated into the financial system as an asset deserving a position, large or small, in mainstream diversified portfolios. Leaving aside the metal’s rediscovered diversification benefits (it tends to go in the opposite direction when stocks go down sharply), gold has risen as a viable investment alternative in today’s environment of unhinged global government spending and monetary expansion.

While silver has risen as well—even more than its sister metal over the last decade—it has remained gold’s shadow investment for important reasons. For one, its smaller market and higher volatility have kept most financial professionals away, as the metal is often regarded as a highly erratic investment best left to speculators. There is also the memory of the 1980s and ’90s bear market, precipitated, in part, by the illegal attempt by two wealthy families to corner the silver market, which led to the metal’s darkest day, March 27,

UOB Gold Saving Account

I sold off my holdings in my UOB Gold Saving Account during the 1st week of December and made 5% return on my investments. It was quite a decent profit considering the fact that I held the investment for only 3 weeks.

Nowadays you will not be able to get this amount of profit even if you put your money in a fixed deposit account. The best thing about UOB Gold Saving Account is the liquidity: you can sell off your investment anytime you want and make quick profits!

Gold Savings Accounts (GSA)/Silver Savings Accounts (SSA) can be opened at any UOB branch in Singapore from Mondays to Fridays during banking hours. You may choose to have a passbook or receive statements of accounts in respect of your GSA or SSA.

Investing in UOB Gold Saving Account is relatively straightforward but investors need to be aware of the risk involved. The gold and silver market is volatile and that the investments in gold and silver are not guaranteed by the Bank nor insured under the Deposit Insurance Scheme. So during a financial crisis, there may be a remote possibility of losing all your investments in the gold saving account.

But the most important thing that investors need to note is that the account balances cannot be exchanged for or converted to physical gold or silver or gold certificates. If you are interested in buying physical bullion, then you may want to consider BullionStar, one of the largest bullion dealers in Singapore. From their website, you can can buy, sell or request withdrawal of bullion online 24/7.

BullionStar was established by people with vast experience in the precious metals industry. One of the founders of BullionStar, Mr. Torgny Persson, has established several bullion dealers in Europe previously. The Swedish …