Gold Archives

Category: Gold

Below is an article from BullionStar, a bullion dealer based in Singapore where you can buy and store gold and silver at competitive prices. BullionStar was established in 2012 after Singapore government exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the goals of SG Wealth Builder is to educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation.

Product Price Premium
Precious metals and bullion products in physical form often have a higher price than the spot-price. The spot-price is the price for which someone can buy certificates or futures on the commodity exchange. It is however mathematically impossible, based on the paper market volume traded, for these so called paper metal products to be fully backed by physical precious metals.

For customers of BullionStar, they can check the price premium by clicking on a specific product in the product overview to reach the product details page where price per gram, price per troy oz, the premium above the spot price and the spread between the buy and sell price are listed.

Price

Premium for Precious Metals
There are two components in the price premium for physical gold and silver. The first and most natural part is accounted for in the melt and minting cost. This part of the premium is called the natural premium. The second component is a market premium that arises when the supply and demand in the paper market for certificates and futures doesn’t correspond with the physical market.

Natural Premium
First, take a look at the production cost for gold and silver in bullion form. BullionStar explained that gold and silver in bullion form is often minted into 1 oz coins or small bars ranging from 1 oz to

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How to invest in gold in Singapore

sgwealthbuilder

December 15, 2014

Gold

1 Comment

I would like to know how to buy gold and invest for my future? Thank you – Ridhwan

There are many ways to invest in gold. Typically, you may buy gold jewellery, invest in gold mining stocks, ETF or gold derivatives. But personally, I prefer to invest in gold bullion, such as coins and bars. This is because in Singapore, the government has removed GST for investment precious metal (IPM). Last year, in one of my articles, I touched on Singapore’s exemption on the investment precious metal (IPM).

Singapore’s regulatory framework for gold

Basically, with effect from 1 Oct 2012, the importation and supply of IPM in Singapore are exempt from GST. The supply of IPM which is exported continues to be zero-rated. However, only precious metals in the form of a bar, ingot, wafer and coin which meet certain criteria can qualify as IPM.

To provide certainty, precious metal coins that qualify as IPM are prescribed in the GST Act. Precious metals which do not meet the criteria cannot qualify as IPM and the supply of non-IPM continues to be taxable. Examples of non-IPM are jewellery, scrap precious metals, numismatic coins and precious metals which are refined by refiners who are not on the “Good Delivery” list of the London Bullion Market Association or the London Platinum and Palladium Market.

Gold trading hub
Singapore government is determined to make Singapore a precious metal trading hub. There is no licensing requirement for the importing and exporting of precious metals, thus ensuring free flow of gold and silver. It has also developed infrastructure to support the growth of the ecosystem.

The Singapore Freeport has been set up in 2010, with cutting edge security and conveniently located near to the Changi Airport. There are also a suite of secure logistic providers

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Singapore Kilobar Gold Contract To Launch in October 2014

sgwealthbuilder

October 7, 2014

Gold

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To be a successful wealth builder, investors must always stay ahead of the the curve and keep abreast on the latest development in investment trends. As mentioned in my previous articles, in the past few years, the government has been trying to establish Singapore as a gold trading hub. Given the huge demand for gold from China and India, Singapore is strategically located to cater to the needs of Asian investors. Ultimately, the aim is to create more opportunities for retail investors and also to create higher value job opportunities.

International Enterprise (IE) Singapore, Singapore Bullion Market Association (SBMA), Singapore Exchange (SGX) and the World Gold Council, today announced that the new exchange-traded Singapore Kilobar Gold Contract (“Contract”) will launch on Monday, 13 October 2014.

The Contract is the first wholesale 25 kilobar gold contract to be offered globally and is the result of a successful collaboration among the four parties. The Contract caters to the continuing strong demand for physical gold in Asia, which has increased significantly over the last decade. Its introduction underpins the creation of a centralised kilobar gold market, characterised by real-time transparent price discovery, daily expiration with physical delivery and robust verification of quality gold.

The launch of this world-first kilobar gold contract is a significant step towards establishing Singapore as a regional precious metals trading hub. The Contract will assist global suppliers of gold to better access markets across Asia and contribute to an increasingly efficient, transparent and trusted gold market.

It will also encourage a more developed gold market in South East Asia, while cementing Singapore’s role as a driving force behind the growth of the industry.

The Contract is based on kilobar gold of at least 99.99% fineness of an Approved Brand, attested by the Gold Delivery Agent,

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BullionStar: India’s June Gold Import Highest in 12 Months

sgwealthbuilder

September 15, 2014

Gold

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Below is an article from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. BullionStar was established in 2012 after Singapore government exempted investment grade precious metals from the goods and services tax (GST).

Despite the fact the new Indian government, led by Narandra Modi since May, hasn’t lowered the import duties on both gold and silver, Indians keep on buying precious metals. Despite the fact we already knew this, there was less gold being smuggled into the country and more imported through official channels last June; 77 tonnes were gross imported, which is up 48 % from a month earlier, and up 75 % from June last year. This was accompanied by falling premiums.Gross export in June accounted for 4 tonnes, according to India’s customs department DGCIS. One of the import restrictions the Indian government implied on gold in 2013 was the 80/20 rule; of every amount of gold imported 20 % has to be re-exported. The gross amount exported in June falls short of the required 15.4 tonnes (20 % of 77 tonnes is 15.4 tonnes), meaning importers have some overdue obligations to be met in coming months. The other restriction on gold (and silver) is an import duty of 10 %, and the Indian government can obstruct consignments.

The elevated official imports coincide with a relatively low premium on gold in India compared to London prices. In June the premium on gold came down to just 2 % (on top of the 10 % import duty). In the next chart I combined official import with the premium. On the left axis we can see the percentages of the premium; the black line is the import duty, the greenish line is the total premium of gold in India over the

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BullionStar introduces the 2015 Perth Mint Lunar Series coins

The 2015 Australian Lunar Silver Goat is now available in stock for immediate delivery.

The Chinese Lunar Calandar
The ShengXiao, is known in English as the Chinese Zodiac. The Chinese zodiac is a system that relates each year to an animal according to a repeated 12-year cycle. It is based on the ancient 12-year Chinese Lunar Calendar, which dates back beyond 2,600 BC. The Shengxiao includes animals in the following order :
Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Chicken, Dog, Pig.

Each animal is associated with certain characteristics and in 2015, we will usher in the year of the Goat.

2015: Year of the Goat
The goat is the eighth of all the animals in the Chinese zodiac. People who are born in the years 1919, 1931, 1943, 1955, 1967, 1979, 1991, 2003 and 2015 are considered born in the Year of the Goat.

People born in the year of the goat are said to be mild mannered, pessimistic, shy, and sympathetic. Personality traits, such as creativity, dependability, intelligence, and calmness make them great companions and friends.

In 2015, the Perth Mint will continue minting the Lunar Series in both gold and silver. For gold, the sizes for the coins will range in weight from 1/20 oz all

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BullionStar: New bullion products and job opportunities

Below is newsletter from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. To be a successful wealth builder, investors must always stay ahead of the the curve and keep abreast on the latest development in investment trends. For the past few years, the government has been trying to establish Singapore as a precious metal trading hub, with the aim of creating good job opportunities for Singaporeans. The salaries offered by BullionStar is really attractive and competitive. So Singaporeans should have no valid reason to complain the lack of good paying job positions in Singapore. Read on to find out more.

Lunar Silver Goat 2015 in Stock!

As one of the first bullion dealers worldwide, BullionStar has stock available for all of the below sizes for the Lunar Silver Goat 2015!1/2 oz, 1 oz, 2 oz, 5 oz, 10 oz and 1 kg.

All coins are available for pick up in our bullion retail shop Monday 1 September 11 am and onwards. Available in limited quantity only. Get yours before we run out of stock. The coins are offered on a first ordered, first served basis.

Other New Products
We continue to steadily increase our range of different products and brands available. Below are the latest additions.

Australian Gold Lunar Horse 2014 – 1/10 oz, 2 oz & 1 kg
We have finally managed to restock the popular Australian Lunar Gold Horse 2014 with coins in different sizes.

As Perth Mint has ceased production of the coins, we will not be able to restock the item again so this is your last chance of laying your hands on the beautiful Lunar Horse Gold coin.

Australian Silver Kookaburra 2015 – 1 oz
The 2015 edition of the 1 oz Australian Kookaburra is particularly

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Job opportunities & new products from BullionStar

Only spot price of gold + 3.9 % regardless of quantity bought.

Valid until 31 August or as long as stocks last.
The Austrian Gold Philharmonics is Europe’s most popular bullion investment gold coin and is well known around the world.

Available in limited quantity only. Get yours today!

BullionStar is Hiring!

BullionStar’s new bullion retail shop has been very well received by customers and stakeholders.

In view of rapid business expansion, we are recruiting! We seek individuals who are interested to work in a dynamic team-oriented environment. We are currently hiring a vault manager and a sales assistant. Get in touch with us if you are interested or know someone that is.

We are offering a sign-on/referral bonus of a 10 oz Heraeus Silver Bar if we hire you or someone that you refer!

Product News
We are offering a range of new products in our new shop. Among the new products are:
Gold Britannias – 1 oz 2014. Gold Britannias are produced by the Royal Mint and is the premier gold bullion coin of the United Kingdom. The

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BullionStar’s opening ceremony

BulllionStar officially opened its bullion retail, showroom and vault Friday 1 August 2014 with many industry representatives being present. Guest of Honor for the opening ceremony was the Swedish charge d’affaires to Singapore Ms. Karin Öhman also helping with the ribbon cutting ceremony.Below follows a transcript from Mr. Persson’s speech from the opening ceremony together with some pictures.

Ladies & Gentleman,
I would like to thank you for your precious time attending BullionStars opening ceremony.

We are honored here today by the presence of our Guest of Honor, Ms. Karin Öhman, chargé d’affaires of Sweden to Singapore.

A special thanks to the Singaporean government and IE Singapore for your presence here today and moreover for facilitating for the bullion industry in Singapore.
I found out about Singapore’s bid to create a trading hub for precious metals in the spring of 2012 after Singapore’s finance minister, Mr. Tharman Shanmugaratnam, had announced the GST exemption for investment precious metals coming into effect 1 October 2012.
With the Asian demand for gold currently standing at 60 % of total global demand, and growing quickly, Singapore´s drive to create a hub for precious metals is well timed.

On my first research trip to Singapore in July 2012, I received the contact information to IE Singapore from a supplier of ours. I sent an initial email to them late night and got a reply in less than 5 minutes stating that that we were welcome to their office the next morning to discuss opportunities.

I was already aware that Singapore consistently rank top 3 in the world for business friendliness prior to my first trip here. The meeting with Kenneth and his colleague from IE Singapore however made a strong impression on us. Not only did they make it clear that we were welcome to

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BullionStar opened new store in Singapore with a bang – free 1 gram PAMP gold bar!

Dear all,

We are pleased to announce that our new bullion retail shop has opened. Yesterday, 14th July marked the opening day!BullionStar’s CEO, Mr. Torgny Persson, congratulated our first customers Mr. & Mrs. Lim at the new shop with
a surprise gift, a 2.5 PAMP Suisse Gold Bar!

The new venue is worldwide unique. Nowhere else can you view, buy, store, deposit, audit, value, sell and
physically withdraw bullion in a one-stop shop.

Address of the new retail shop:
45 New Bridge Road
Singapore 059398
The closest MRT station is Clarke Quay which is a 2 minute walk across the road.

Opening Hours:

Monday to Thursday: 11.00 am to 8.00 pm
Friday: 11 am to 5 pm
Saturday: 10.00 am to 2.00 pm
Closed on Sundays and Public Holidays
Walk-ins are welcome.

There is no longer any need to set appointments for picking up pre-paid bullion, selling bullion or making payment.
Promotion – FREE Gold Bar

To celebrate our big move, customers who purchase physical bullion for SGD 10,000 or more in a single order during the period from 14^th July to 13^th August, will get a PAMP 1 gram Gold Bar for FREE while stocks last.*

* Limited to one gold bar per customer and not valid for Vault Gram purchases.
We look forward to serve you at our new venue! See below for more pictures of the new venue.

BullionStar’s Storefront Bullion Showroom Showcase display with 10 kg Silver Lunar Horse coin
Gold Trends Video
BullionStar’s CEO Torgny Persson recently held a presentation at the Passport to Freedom conference in the US.
See the video here (scroll down to 4th video).

Blog Posting
We are happy to announce that the renowned precious metals blogger, Koos Jansen, will post blog posts
and articles at BullionStar.com here.

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BullionStar’s New Bullion Shop, Showroom & Vault at New Bridge Road, Singapore

Below is an announcement from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. BullionStar was established in 2012 after Singapore government exempted investment grade precious metals from the goods and services tax (GST). I have interviewed the CEO, Mr Torgny before and found him to be an honest guy with a strong conviction in the prospect of bullion. His business expansion coincided with the slew of governmental policies to drive gold liquidity in Singapore (Metalor’s gold refinery and new vaults in Singapore Freeport), thus reflecting the growing demand for gold in Singapore.

We are pleased to share with you that we are moving to our new bullion shop, showroom and vault on 14^th July 2014.
In our new retail venue, you will be able to view, buy, store, deposit, audit, sell and physically withdraw bullion in a one-stop shop.

The address of the new location is:
45 New Bridge Road
Singapore 059398The closest MRT station is Clarke Quay which is a 2 minute walk across the road.
The new extended opening hours are:

Monday to Thursday: 11.00 pm to 8.00 pm
Friday: 11 pm to 5 pm
Saturday: 10.00 am to 2.00 pm
Closed on Sundays and Public Holidays

Our phone number +65 6284 4653 will remain the same for any queries.

Walk-ins are welcome. There is no longer any need to set appointments when picking up pre-paid bullion, selling bullion or making payment.

Promotion – FREE Gold Bar
To celebrate our big move, customers who purchase physical bullion for more than SGD10,000 in a single order during the period of 14^th July to 13^th August will get a PAMP 1 gram Gold Bar for FREE whilst stocks last.*

* Limited to one gold bar per customer and not

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BullionStar Review: Singapore takes major step to become gold trading hub

Below is an article published with permission from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. To be a successful wealth builder, investors must always stay ahead of the the curve and keep abreast on the latest development in investment trends. For the past few years, the government has been trying to establish Singapore as a precious metal trading hub. Clearly, there is an investment demand to justify such policy shift. Investors should therefore consider accumulating gold bullion on a long term basis before it starts to get expensive again.

It was announced last week at the locally held London Bullion Market Association (LBMA) forum that the Singapore Exchange will introduce a wholesale kilobar gold contract from as early as September 2014. The introduction of the contract for 25kg of 99.99 per cent purity gold underscores Singapore’s ambition to become a major player in physical bullion trading at a time when global gold demand moves to the east.

It was also reported that Asia’s strong demand for gold was the key driver for the introduction of this contract. According to the World Gold Council, Asia accounted for 63 percent of total consumption of gold jewellery, bars and coins last year. It is this trend of gold moving from the West to the East that many analysts believe that Asia should have greater influence in the price discovery of physical gold.

“This is a timely development given the increased requirements for reference prices to be transparent,” Trade and Industry Minister Lim Hng Kiang said in a speech at the LBMA forum. Echoing Mr Lim’s statement, SGX President Muthukrishnan Ramaswami said that this latest development “will enable the trading and clearing of the Singapore kilobar gold contract and establish a fully transparent price discovery

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Why Singaporeans should invest in gold bullion

This week, an article by Reuters reported that gold jewellery exports by India is expected to grow by 25% in the year to March 2015. This is an impressive figure given that last year, the Indian government raised the import duty to a record 10 percent and also make it mandatory for merchants to export 20 per cent of the imported gold. In Asia, various data released by gold analysts indicated that China and India will continue to be the leading consumers for gold. The key reason for Asian’s fascination for gold is because the Chinese and Indians understand the value of gold as a means to preserve wealth.

Over in Singapore, the government is beginning to appreciate the role of gold bullion in the investment fraternity and has been implementing policies to develop Singapore as a metal trading hub for gold. In 2012, the government removed 7 percent GST from investment-grade precious metals, hoping to spur Singaporean’s demand for gold.

As a result of this policy shift, many gold dealers, such as BullionStar, has set up shop in Singapore. For many international and domestic investors seeking safe haven for their precious metals, Singapore is considered one of the best choices because of its reputation for being a safe country with low crime rate. BullionStar stands out from the rest of its competitors as it offers convenient, end-to-end solutions for the purchase, sale, storage and delivery of an assortment of bullion products through its BullionStar’s “My Vault Storage”.

Three ways to build your wealth with gold. You may buy “paper gold” such as gold mining stocks or gold Electronic Traded Funds (ETFs) through the stock exchange. However, it is important to note that investing in these investment products carry substantial risks for average investors because of the potential risk

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BullionStar: The Chinese Gold Rush continues

Below is an article published with permission from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. SG Wealth Builder always believe that every wealth builder should have bullion in their portfolio. Over the long run, the outlook for gold is still bright, especially in Asia context.

While 2013 was an exceptional year for gold demand in Asia, with shortages of minted physical gold bullion products and gold itself, according to some, 2014 continues to show robust gold demand according to the World Gold Council’s Q1 report.At BullionStar, we can testify about the growth in gold demand that we have seen in the last year. Whereas investors in the Western economies have shunned gold because it carries no yield or return on investment, regional physical demand in South East Asia has been very strong and is spurred by other factors.

Asian Gold Mindset
The Asian mindset to gold is different from in West says Managing Director of the World Gold Council, Mr. Albert Cheng, at the presentation of the World Gold Council’s publication “Q1 Gold Demand Trends” to which BullionStar was grateful to be invited. Many Asians view gold as a conservative way of saving. With the economic growth in China, the increased gold demand is a result of the wealth effect continues Mr. Cheng.

Gold demand in the first quarter of 2014 was 1,074 tonnes, almost unchanged compared to Q1 2013. On the shortages which appeared during 2013, Mr. Cheng comments that it was the minting capacity that was limited rather than the supply of gold itself. The reason for the shortages last year was that it takes time for the delivery of 400 oz gold bars from the London vaults, through Swiss refineries minting 1 kg bars, before delivery can

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The best time to buy gold

The best time to buy gold is not always so straight-forward.. No matter what assets you invested in, the only way to make money and become rich is to adopt a contrarian approach. Most investors understand the investment principle of “buy low and sell high” but when it comes to practice, most people will refrain from taking a position that opposes the majority. This trend is similar for any form of investments – property, equities, currencies and precious metals.

Currently the Wall Street’s Dow Jones is at a historic high of 16,200 points, recording a stock market bull run that stretched from 2009’s 6500 points. This represented an incredible 250% jump within 4 years for the United States’ stock market. A sensible investor would have refrained from investing in the stock market, given the bubbly state. Conversely, gold’s performance has been dismal this year.

According to BullionStar, gold prices have plunged more than 30% since the start of 2013. This puts gold in its first bear market after 12 consecutive bull market years. In my opinion, gold prices could slide further, reaching USD900 per ounce. On the surface, this may seem like an ominous news to gold investors, especially for those who had invested in paper gold, such as ETF and mining stocks. But if you are those who believe in bullion (gold bars and coins), this correction represents a golden opportunity to enter the market. This is because every market has their bull and bear runs, and it is perfectly normal to have major corrections of up to 80%.

Nobody can predict the future, so it is a question as to when the gold market will bottom out. But it should be noted that no asset with good fundamental will remain oversold forever. Just like equities, we should

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Record Bankruptcy for US City, Detroit

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

On 19^th July 2013, Detroit became the largest city in United States history to file for bankruptcy protection after piling up debt of more than USD$18 billion. For more than a decade, the city has been borrowing money to pay for its expenses and fund its expensive pension system. Apparently, the breaking point came about after Detroit failed to reach agreements with the bondholders and creditors to restructure the city’s debt out of court.

People who are familiar with The Federal Reserve’s money creation process would not be surprised by Detroit’s bankruptcy. Since President Nixon decoupled the link between gold and the U.S dollar in 1971, it effectively ended any form of gold peg internationally. Without any convertibility to gold by any currency, governments all over the world are free to create as much fiat money as they wish without any restriction. As a result, debt levels began to climb. At this point of writing, U.S debt alone amounts to more than USD100 trillion.

The dire consequence of our current debt-based system is that it could get out of control, resulting in hyperinflation and social security problems. Today, Detroit faces the tricky problem of obtaining bailout from the Federal government because of its credit rating junk status. Unemployment and crime rates in the city are high. Creditors are expected to wrangle with the pensioners for the city diminished wealth. Henceforth, BullionStar believes that in such a scenario, there could be complete loss of personal wealth, unless that wealth is held in gold.

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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 –

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BullionStar Review: Gold Buying Frenzy in Asia

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

According to Scott Morrison, Chairman of Swiss precious metals processor, Metalor Technologies, gold refineries were unable to keep up with the demand from Asia investors as the plunge in gold price sparked frenzy in buying gold bullions and jewelry from China to India. His company expects to complete its US$15 million gold refinery on Singapore by the end of this year. The refinery will have a capacity of 150 metric tons a year, he said.

In a bid to expand Singapore’s share of gold bullion trading, the government removed 7 percent GST from investment-grade precious metals in 2012. The aim is to enhance trading and encourage the buying and selling of gold and silver. Retail players should welcome this move as having an vibrant ecosystem of trading facilities will help to boost the liquidity of precious metals.

As a result of this policy change, international financial institutes like Deutsche Bank and JPMorgan Chase have opened vaults in Singapore. In recent years, in order to meet the demand for physical gold which is being highly sought by the local investment community, premiere online bullion dealers like BullionStar Singapore were established to facilitate the trading of gold and silver at competitive prices.

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BullionStar Review: Will the end of quantitative easing signal the collapse of gold prices?

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

It has been an interesting year thus far for gold. Having traded between USD$ 1600 to USD$ 1800 for much of last year, it has trended downwards for the first few months of this year, cumulating in a nose dive in the middle of April, where prices tumbled 15% in a mere 2 days and is currently trading around USD$1,400.

One of the main contributing reasons many agree on is the ongoing talk by the United States Federal Reserve to taper quantitative easing, with some suggesting a tapering starting as early as the end of this year. The reason offered was that the amount of money that has been pumped into the economy has already started to stimulate the economy and since this is the case, the government do not have to interfere in the markets anymore. Other reasons that were offered included the slowdown in the Chinese Economy or the hedge funds liquidating their long positions in the stock markets.

What implications are there should the Federal Reserve slow down the printing of the dollar? The dollar will definitely increase against other currencies, which is what we have already seen as investors move their money out of other asset classes (gold and silver included) to invest in the US dollar and their stock exchanges. For example, the S&P 500 has been up around 16% since the start of the year.
This outflow of money from gold and silver into US dollar and its stock exchanges is likely to cause prices of gold and silver to fall. Does that mean that we should steer clear of physical precious metals? Investors might have forgotten two very key issues. Firstly, even

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Gold as part of your investment portfolio

After posting several articles on BullionStar Singapore, a number of readers had emailed me to query my views on the gold market developments. Generally, I am still confident in the long term prospect of gold due to the emerging middle classes from India and China accelerating gold demand.

But more importantly, to be successful wealth builders, I believe investors should hold bullion in their investment portfolio. This is because gold prices often move in opposite direction to stocks and currency. So allocating gold in your portfolio can help to serve as a form of hedge against inflation and preserve your portfolio’s value.

Holistic view on gold investments
How do you become rich through investing in gold? The matter of fact is, investors should hold a long term view on gold and not expect quick returns from the precious metal. They should consider it as a form of diversification to lower risk for their investment portfolio.

Very often, I read articles from many bloggers in The Finance.sg sharing their own stock investments. Many of them pumped in hundred of thousands of dollars on shares, REITs and ETF. Their investment performances were impressive indeed but if the stock market plunged suddenly, large portions of their investment values would be wiped off overnight. How many of these investors can stomach such market swings? That I don’t know but all I know is that every portfolio must be balanced and focusing too much on stocks in your asset allocation is not healthy at all.

Believing in physical gold
Like many gold investors, I only believe in physical gold. In fact, according to London Bullion Market Association, on most trading days, 90% of transactions happened in physical gold and only 10% are in derivative market.

Actually this is what is happening in Singapore now.

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GST exemption for Gold and Silver

The following information is extracted from Inland Revenue Authority of Singapore’s e-Tax Guide.

With effect from 1 Oct 2012, the importation and supply of IPM in Singapore are exempt from GST. The supply of IPM which is exported continues to be zero-rated. However, only precious metals in the form of a bar, ingot, wafer and coin which meet certain criteria can qualify as IPM. To provide certainty, precious metal coins that qualify as IPM are prescribed in the GST Act. Precious metals which do not meet the criteria cannot qualify as IPM and the supply of non-IPM continues to be taxable. Examples of non-IPM are jewellery, scrap precious metals, numismatic coins and precious metals which are refined by refiners who are not on the “Good Delivery” list of the London Bullion Market Association or the London Platinum and Palladium Market.

Criteria for IPM bar, ingot and wafer
To qualify for GST exemption, the precious metal must meet all of the following criteria:
(a) It is gold of at least 99.5% purity, silver of at least 99.9% purity or platinum of at least 99% purity.
(b) It is capable of being traded on the international bullion market.
A precious metal bar, ingot or wafer refined by a refiner with the following accreditation/ endorsement is regarded as meeting this criterion:

(i) For gold and silver, a refiner in the current or former “Good Delivery” list of the London Bullion Market Association (LBMA)

(ii) For platinum, a refiner in the current or former “Good Delivery” list of the London Platinum & Palladium Market (LPPM)

(iii) A refiner who intends to be in the “Good Delivery” list of the LBMA (for gold and silver) or LPPM (for platinum) and is endorsed by the International Enterprise (IE) Singapore. Refiners with such endorsement will

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Gold Investment:BullionStar at a Glance

The following article is an advertorial from BullionStar. It is for information only and readers must not miscontrue it as an offer or inducement to buy. SG Web Reviews will not be responsible for any losses made by readers as a result of any investments made by readers based on this article.

Physical Metal
The bullion you buy from BullionStar is just that – your bullion. BullionStar only offers fully allocated bullion. No paper promises, no unallocated accounts, no risky Ponzi schemes. The bullion you buy from BullionStar is YOUR bullion.

Your Metals – Your choice
BullionStar offers you a wide range of quality bullion from renowned mints and refineries. You are always in full control of your assets with BullionStar.

– Buy or sell various bars and coins at competitive rates and spreads.

– Have your bullion shipped, picked up or stored in “My Vault”.
– Trade fully allocated Vault Grams in Gold, Silver and Platinum for a low spread online.

– Control your stored bullion in My Vault online where you can buy, sell or request delivery of your physically stored bullion at all times.

We are proud of our versatile, easy-to-use online trading platform. You can place orders 24/7 to trade the bullion you need when the price and conditions are right for you.

Choose whether to have your bullion:
– Shipped to your delivery address;

– Picked up by yourself; or

– Stored securely in “My Vault”

Competitive Prices
BullionStar is building on the experience of its renowned trading system for precious metals. The BullionStar platform is shared by several successful bullion dealers around the world. You benefit from the volume-based premiums we can offer as a result of our worldwide presence. As a result, BullionStar provides some of the lowest premiums and storage fees available anywhere, without

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Interview with BullionStar Singapore

Today, SG Wealth Builder is honoured to have an interview with Zane Lim, Regional Manager of Operations for BullionStar.

BullionStar is a physical precious metals trading company in specializing in online sales in Singapore. Its office is located at Marina Bay Financial Center Tower Two.

Zane, its a pleasure to meet you. Can you tell us more about your company’s background, business model and history?

BullionStar was formed by people with vast experience in the precious metals industry. The founders of BullionStar own and operate several precious metals companies worldwide. One of the founders of BullionStar, Mr. Torgny Persson, has established several bullion dealers in Europe previously. The Swedish company Liberty Silver AB was established by Mr. Persson in 2008 whereas Estonian Liberty Silver OÜ was established in 2011. Another founder of BullionStar, Mr. Joakim Andersson, is also the managing director of Bullion International Ltd which is a service provider for bullion dealers and information companies in the precious metals industry. The founders are supporting the Austrian School of Economics, hence BullionStar is built on a strong ideological belief that precious metals is the best unit of account and the purest form of money.

Precious metals have been used as money for thousands of years. During the last four decades, precious metals have been removed from our monetary system which no longer has any backing whatsoever. We at BullionStar believe that the current monetary system, called fractional reserve banking, is to blame for many of the economic problems arising today. We thus want to offer a reliable alternative, an asset which has retained its value and purchasing power for thousands of years: precious metals, specifically, gold, silver and platinum.

At BullionStar, we are dedicated to be a full service provider for individuals and institutions buying, selling and trading physical

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UOB Gold/Silver Saving Account

Two years ago, I wrote two articles on my investment experience on UOB Gold/Silver Saving Account. There were many comments and queries from my readers.

Firstly, I must clarify that I did not represent UOB when I wrote the articles and UOB also does not pay me for promoting their product. Secondly, I wrote the articles based on my investment experience. I had made some money from it and thus, wished to share with my readers.

I will not bear responsibility for any potential losses incurred as readers need to do homework before investing or alternatively, they should seek financial consultant’s advice before deciding for themselves whether to invest in this product.

Recently a reader queried the GST and fees chargeable for the transactions for UOB Gold/Silver Saving Account. Based on UOB’s website, there is no GST chargeable for transactions. As for the fees, they are indicated clearly in the website for both Gold and Silver savings. I would advise investors to confirm with the bank staff before you open a Gold/Silver Saving Account with UOB. Their customer service’s contact can be found in the website.

As I mentioned two years ago, UOB was the only bank that offered this scheme. And it still is. For this scheme, there is no physical gold or silver being transacted. Essentially, you are converting your deposits from money to gold/silver savings. The gold/silver savings is bench-marked to the gold and silver market prices. In purchasing gold/silver products, the investors must understand and acknowledge that:

a) Gold and silver market is very volatile
b) losses can be incurred from such investment
c) an investment in gold or silver provides no dividend yield or interest
d) prices would have to rise sufficiently over the investment period in order to yield a profit on sale

Good …

UOB Gold Saving Account

Last Wednesday, the Federal Reserve of United States announced its plan to purchase US$600 billion Treasury securities. What this means it that the USA will be printing another $600 billion dollars and flood the international markets with cheap dollars, effectively driving down the value of dollar. This move could have an impact on gold price and UOB Gold/Silver Savings Account.

Now how would that affect you? Plenty. This is because now that banks have cheap access to huge amount of money and will drive down interest rates to virtually zero. So actually your money in the bank is getting negative interest rates due to inflation.

One way to hedge against inflation and earn passive income is investing in precious metals like gold and silver. Throughout history, gold has always been viewed as safe haven, particularly during turbulent times like wars. This is because unlike currency, gold has intrinsic value and is in limited supply. For the longest time, investors have always regarded gold as a safe haven during market uncertainty. Thus, gold prices usually move in opposite direction to the state of economy.

In Singapore, one of the easiest ways to invest in precious metals is by investing in UOB’s gold saving accounts.Based on my knowledge, UOB is the only bank that offers this type of investment to retail customers. This is equivalent to depositing a certain amount of money in the account and you can choose to buy and sell unallocated gold/silver through the passbook.

Un-allocated means you are not buying physical gold/silver and UOB will not store any gold/silver for you. Effectively, you are betting on the movement of gold/silver and converting your cash deposits into gold/silver in terms of value. UOB would charge a nominal administrative fees per month. Check out UOB website for more information.

With …

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