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BullionStar Financials FY 2016 – Year in Review

BullionStar has adopted a transparent approach in releasing BullionStar financials i.e. information about the company's overall company performance and sales data for each financial year. This blog post presents the BullionStar Financials FY 2016 - Year in Review as the financials stood at the end of the financial year 2016 which ended on the 30th June 2016 (FY 2016).

FY 2016 was a very strong year for BullionStar with sales revenues totaling SGD 134,200,000, a 111.7% increase from FY 2015.  BullionStar launched several new products and services during FY 2016 - the BullionStar Stored Value Facility, which allows customers to keep funds on account with BullionStar, being the most notable one. BullionStar also launched the Gold University, a unique Wikipedia-style resource of up-to-date factual information covering topics such as gold markets, gold vaults, refineries and mints and central bank policies during the financial year.

In FY 2016, BullionStar increased the product range to include over 500 different bullion, numismatics and coin supply products across 10 different product categories. We also revamped our savings and tradings product, the Bullion Savings Program, enabling our customers to convert their BSP Grams to physical bullion at any time without any charge.

BullionStar Financials FY 2016 - Year in Review - Sales

BullionStar Financials FY 2016 - Year in Review - Sales revenues for the financial year 2016

BullionStar’s sales revenue for FY 2016 was SGD 134.2m, up from 63.4m in FY 2015.

For Q1 2016, the total global bullion demand increased by 21% when calculated in tonnage and by 17% when calculated in USD, based on data from the World Gold Council comparing Q1 2016 to Q1 2015.

BullionStar saw strong demand from local investors/savers in H2 2015 and an increased demand from international investors/savers in H1 2016.

Overall bullion demand in Singapore decreased from 1.6 tonnes in the first quarter of 2015 to 1.2 tonnes in the first quarter of 2016, marking a 25% decrease, according to the World Gold Council. For Q1 2016, BullionStar sold approximately 0.5 tonnes of gold bullion, thereby contributing to 42% of the total Singaporean bullion market based on the figures published by the World Gold Council.

BullionStar Financials FY 2016 - Year in Review - BullionStar has a 42% market share of the Singaporean gold bullion market

BullionStar has grown substantially during the financial year and we continue to demonstrate strong performance regardless of whether the price trend for precious metals is positive or negative. Our growth is derived from a mix of increased sales originating from both domestic and international customers. With more and more international customers finding out about the jurisdictional advantages of buying and storing bullion in Singapore, the international customer segment is increasing in importance.

BullionStar is in a strong financial position and continued to be profitable for the third year in a row with FY 2016. BullionStar has no long term debts to any financial institutions.

The strong performance and growth of the company are evidenced in the below diagram. The volume of orders, average order size and median order size all increased for FY 2016 compared to FY 2015.

BullionStar Financials FY 2016 - Year in Review - BullionStar orders, average order size and median order size for FY 2016

Sales per Product Category

A comparison between the below chart for FY 2016 and the corresponding chart for FY 2015 reveals that the proportional demand for gold, in relation to all metals sold by the company, increased in FY 2016. Gold consisted of 66.30% of total sales for FY 2015 whereas it increased to 72.57% of total sales for FY 2016. The increase in popularity for 100 gram gold bars and 1 kg silver bars are attributable to the high demand for the BullionStar 100 gram gold bar and the BullionStar 1 kg silver bar.

BullionStar Financials FY 2016 - Year in Review - BullionStar sales per bullion product category

What Lies Ahead

In the wake of the high uncertainty in the global markets post-Brexit and post-Trump, the demand for gold has been revived in the west while gold continues to be the savings asset of choice in the east. This combination of demand continues to put pressure on the wholesale gold market with virtually no gold available in the gold capital of the world, London.

BullionStar expects FY 2017 to be an even stronger year and has to date increased its sales revenue significantly compared to the figures as presented in this BullionStar Financials FY 2016 report.

Gold & Silver Prices

The first half of 2016 was characterized by a trend reversal in the spot prices for gold and silver.

During FY 2016, the gold price increased from SGD 50.85/gram on 1 July 2015 to SGD 57.15/gram on 30 June 2016, equivalent to a 12.39% increase when denominated in Singapore Dollars.

BullionStar Financials FY 2016 - Year in Review - Spot gold price development 2015-2016

The silver price, when denominated in Singapore Dollars, increased 17.65% during the period, from SGD 0.68/gram on 1 July 2015 to SGD 0.80/gram on 30 June 2016.

BullionStar Financials FY 2016 - Year in Review - Spot silver price development 2015-2016

BullionStar Vault Storage

When our customers store their metals with us, they have full control of their bullion portfolio online 24/7. We employ no less than 5 different audit schemes, including third party audits by the LBMA-approved auditor Bureau Veritas, to verify the existence and correctness of the stored bullion. With our vault being integrated into the same venue as our shop and showroom, customers can physically audit and withdraw their precious metals without any prior notification.

By the end of FY 2016, we stored approximately SGD 84.1m in precious metals as vault storage provider on behalf of our customers. This corresponds to an increase of 58.7% compared to one year ago.

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Customer Satisfaction

We are proud of our status as the premier bullion dealer in Singapore offering customers a unique solution to international diversification.  At BullionStar, we continuously develop new products and services enabling our customers' full control of their precious metals online combined with the physical accessibility of our bullion center in Singapore.

BullionStar: 700+ reviews with an average of 4.8                                BullionStar: 700+ facebook reviews with an average of 4.7

About BullionStar

BullionStar is Singapore's premier bullion dealer offering a wide range of precious metals products and services. BullionStar is breaking new ground by introducing modern technology into the age-old precious metals industry. With a proprietary online platform, BullionStar offers customers the ability to efficiently handle and control their bullion holdings 24/7 at their convenience.

BullionStar runs a one-stop retail shop and vault for precious metals at 45 New Bridge Road in Singapore where customers can view, buy, sell, value, deposit, test, audit and physically withdraw precious metals.

With original research and analysis covering the precious metals market on a whole and the Asian market specifically, world renowned analysts Koos Jansen and Ronan Manly keep readers updated on the news that matters.

BullionStar Financials 2015 – The Year in Review

2015 was a momentous year for BullionStar with sales revenues totaling SGD 89.6m*, a 69.1% increase from 2014.  2015 also marked the first full calendar year in operation for our unique bullion retail shop, showroom and built-in vault which was launched in July 2014.

In 2015, we increased our product range to include over 370 different bullion and numismatics products across 9 different product categories. We also released our very own BullionStar Minted Gold Bars and BullionStar Minted Silver Bars – which offer no spread between the buy and sell price.

We also launched the possibility to keep funds on account with BullionStar thereby simplifying the transactional process and allowing for greater convenience throughout the bullion trading process. Furthermore, we enhanced our Bullion Savings Program (formerly Vault Grams) enabling our customers to convert their BSP Grams to physical bullion where they can take full physical delivery at any time without any charge.

Sales in 2015Fin1

BullionStar’s sales revenue for 2015 was SGD 89.6m*, up 69.1% from 2014.

Comparatively, the total global bullion demand increased by 1% in 2015 if calculated in tonnage and decreased 7.9% if calculated in USD (based on data from the World Gold Council for Q1 to Q3 2015 compared with data for Q1 to Q3 2014). BullionStar's strong and rapid growth is thus rather spectacular when compared to the industry development as a whole.

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Overall bullion demand in Singapore decreased from 5.9 tonnes to 4.8 tonnes marking an 18.6% decrease for the first three quarters of 2015 according to the same publication. For the first three quarters of 2015, BullionStar sold approximately 0.9 tonnes of bullion gold, thereby contributing to 18.4% of the total Singaporean bullion market based on the data published by the World Gold Council.

Despite consolidating market conditions in the bullion industry as a whole, we grew our sales revenue steadily during the year and picked up the pace during the second half of the year. The sales revenue of SGD 53.7m for 2H15 was markedly higher than the SGD 35.9m reported for 1H15. Our growth is derived from a mix of increased sales to domestic and international customers. 

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By comparing the below pie chart to the corresponding chart for 2014, we can see that gold increased in popularity compared to silver in 2015. Gold consisted of 67.20% of total sales for 2014 whereas it increased to 72.39% of total sales for 2015. One explanation for the proportionate increase in the popularity of gold may be the increasing gold/silver ratio, where 76.4 grams of silver was equivalent in value to 1 gram of gold at the end of 2015, a figure being close to its multi-year highs. With the fall in commodity prices in 2015, silver has been affected to a greater extent than gold due to its predominant industrial usage. Gold, on the other hand, has once again re-emerged as the ultimate safe harbor in times of uncertainty.

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What lies ahead

The first couple of weeks of the new year has been characterized by renewed volatility on the global markets following concerns about global debt levels and poor growth. We expect global markets to continue to be volatile during the year. Consequently, bullion stored in a safe and stable jurisdiction like Singapore emerges as a natural diversification option for an increasing number of savers and investors. We expect bullion demand to increase globally in 2016 and particularly here at BullionStar where our strategic focus will be to continue our internationalization efforts by marketing Singapore as the world’s outstanding jurisdiction for buying and storing bullion.

Another noteworthy trend is the increasing popularity of gold coins which have been driven by the increased demand for Canadian Gold Maples for which the Royal Canadian Mint introduced an amended design with improved security features in 2015.

Gold & Silver Prices

The gold price, denominated in Singapore Dollars, declined 4.3% during the year. The gold price started the year at SGD 50.48/gram and ended at SGD 48.33/gram.

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The silver price, denominated in Singapore Dollars, declined 6% during the year. The silver price started the year at SGD 0.67/gram and ended at SGD 0.63/gram.

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BullionStar Vault Storage

When our customers store their metals with us, they have full control of their bullion portfolio online 24/7. We employ no less than 5 different audit schemes, including third party audits by the LBMA-approved auditor Bureau Veritas, to verify the existence and correctness of the stored bullion. With our vault being integrated in the same venue as our shop and showroom, customers can physically audit and withdraw their precious metals without any prior notification.

By the end of 2015, we stored approximately SGD 53m in precious metals as vault storage provider on behalf of our customers. This corresponds to an increase of 39.5% compared to one year ago.

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Customer Satisfaction

We are proud to have earned an outstanding reputation in the bullion industry. At BullionStar, we strive to continuously develop our offering by giving our customers usable online tools, physical accessibility and by sharing our competence and knowledge about precious metals.

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About BullionStar

BullionStar is Singapore's premier bullion dealer offering a wide range of precious metals products and services. BullionStar is breaking new ground by introducing modern technology into the age-old precious metals industry. With a proprietary online platform, BullionStar offers customers the ability to efficiently handle and control their bullion holdings 24/7 at their convenience.

BullionStar runs a one-stop retail shop and vault for precious metals at 45 New Bridge Road in Singapore where customers can view, buy, sell, value, deposit, test, audit and physically withdraw precious metals.

With original research and analysis covering the precious metals market on a whole and the Asian market specifically, world renowned analysts Koos Jansen and Ronan Manly keep readers updated on the news that matters.


* This is an indicative report. BullionStar's financial year is 1 July - 30 June. All figures are based on reports from our administration system, are indicative in nature and based on our best efforts.