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The Singaporean government removes GST for Investment Precious Metals 1 October 2012
Published: 31-07-2012 16:35
Economically, Singapore has long been one of the freest countries in the world. According to the Index of Economic Freedom by The Heritage Foundation, Singapore's economy is ranked 2nd in the whole world next only to Hong Kong (source: http://www.heritage.org/index/country/singapore).
With the removal of the Goods & Services Tax or GST on gold, they may even be in a position to challenge Hong Kong's status as freest economy.
This policy decision by their Finance Minister Tharman Shanmugaratnam will be implemented by October 1. This is very good news for the citizens of Singapore and the economy in general. This will mean more awareness of monetary freedom for their people and a definite increase in their economic freedom.
Singapore already has one of the lowest taxes in the world and the most minimal red tape and burdens for entrepreneurs who are already in Singapore and those who have yet to enter the market. There are zero tariffs on imports. Both foreign and local industries are treated equally under the law. This lifting of the GST on gold will enhance these freedoms even more.
People will now be able to trade physical gold bullion even more freely and with very minimal burdens or restrictions from government. People who decide to invest in gold will be able to protect their income and savings against inflation and against many of the world's other economic problems (just consider all the problems in the Eurozone right now).
Recently, Facebook co-founder Eduardo Saverin's decision to move to Singapore was trending all over the news and on the Internet. This is the market dictating that Singapore is very welcoming and inviting to investors. Throughout the course of history, migration has always been an indicator of where there is freedom and prosperity. Nobel prize-winning economist and strong proponent of laissez-faire economics Milton Friedman, in one of his speeches, referred to this as “people voting with their feet”. And now it is undeniable that the place to invest in gold is Singapore.
This move by Singapore will likely add to the nation's prosperity, and hopefully, it becomes a precedent for other countries to do the same as well. It may even be the impetus for people to rethink the whole concept of government's role in monetary policy.
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