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BullionStar Financials FY 2017 – Year in Review

This blog post, BullionStar Financials FY 2017 - Year in Review, reviews BullionStar's performance for the financial year ending 30 June 2017 (FY 2017).

BullionStar hit a new milestone in FY 2017 with sales revenues totaling SGD 186,200,000 - a 38.7% increase over FY 2016.

During FY 2017, BullionStar launched its dedicated mobile website. When accessing www.bullionstar.com on a mobile phone, visitors and customers are able to manage all their precious metals needs on a website that optimizes the mobile user's experience, with layouts and user options tailored for mobile browsing.

During the financial year, BullionStar also continued expanding the content of its 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.

In FY 2017, BullionStar increased its product range to include over 650 different bullion, numismatics and coin supply products across 10 different product categories.

BullionStar furthermore exhibited at FreedomFest 2016, which is the world's largest gathering for freedom-minded people.

BullionStar Financials FY 2017 - Year in Review - Sales

BullionStar’s sales revenue for FY 2017 grew by 38.7% to SGD 186.2 m, up from SGD 134.2 m in FY 2016.BullionStar Sales Revenue increased 38.7% between FY 2016 and FY 2017

For H1 2017, total global bullion demand increased by 11.2% when calculated in tonnage based on data from the World Gold Council comparing H1 2017 to H1 2016.

According to the World Gold Council, between 2016 and 2017, overall gold demand in Singapore shrank from 18.1 tonnes to 17.1 tonnes, a 9% fall. At the same time, demand for gold bullion fell from 5.9 tonnes in 2016 to 5 tonnes in 2017. In 2016, BullionStar sold approximately 2.3 tonnes of gold bullion, thereby representing 13.5% of all gold sold in Singapore and 46% of all gold bullion sold in Singapore.

Despite marginal growth in the bullion sector globally, and despite precious metal spot prices being range bound in a narrow range for most of the financial year - which typically results in lesser volume - BullionStar has continued to grow strongly.

With customers from 101 countries, BullionStar has continued to attract long-term international customers who are looking to geographically diversify their wealth holdings into the safe jurisdiction that Singapore offers.  

With its FY 2017 results, BullionStar remains in a very strong financial position and has been profitable for the fourth year in a row. BullionStar has no long-term debts to any financial institutions.

The strong performance and growth of the company is reflected in the diagram below.

BullionStar sales metrics such as average and medium order

Sales per Product Category

A comparison between the chart below for FY 2017 and the corresponding chart for FY 2016 reveals that the proportional demand for gold, relative to silver, is largely unchanged. Gold consisted of approximately 73% of total sales for both FY 2016 and FY 2017.

During the financial year, BullionStar has successfully attracted larger international customers, increased the average order size, and increased the sales of larger gold bars such as 1 kg gold bars. In FY 2017, the 1 kg gold bar segment consisted of 26.8% of the overall demand for gold bars, compared to 21.5% for FY 2016.

For silver bars, the popularity of the BullionStar 1 kg silver bar - which can be traded without any spread between the buy and sell price - contributed to most of the proportional increase in sales in the 1 kg silver bar category. In FY 2017, the 1 kg silver bar segment increased its share of total sales for silver bars to 63.4%, from 24.6% in FY 2016.

The trend of higher sales of bullion bars and lower sales for bullion coins, as witnessed last financial year, continued during FY 2017. Sales of gold coins as a percentage of total sales fell from 18% to 12.6%, while sales of silver coins decreased from 7.2% to 4.6%.

BullionStar sales per precious metal and precious metal product category

What Lies Ahead

Unsustainable debt levels continue to plague many western countries. Together with increased geopolitical instability, the demand for physical gold has increased in the last few months, despite lackluster movements in gold spot prices. BullionStar’s sales revenue for July 2017, following on from the end of BullionStar's financial year, amounted to approximately SGD 20 m, significantly higher than average.

BullionStar expects FY 2018 to be a strong year with sales revenues at least on par with FY 2017.

BullionStar expects to launch several different new products during FY 2018 as well as conduct a major revamp of its website.

Gold & Silver Prices

The gold spot price development during BullionStar's FY 2017 was less volatile than in previous years, with gold trading between a low of SGD 52.30/gram and a high of SGD 59.39/gram. During FY 2017, the gold price decreased from SGD 57.15/gram on 1 July 2016 to SGD 55.02/gram on 30 June 2017, equivalent to a 3.7% decrease when denominated in Singapore Dollars.

BullionStar Financials FY 2017 - Year in Review - Spot gold price development 2016-2017

The silver price, when denominated in Singapore Dollars, fell by 7.5% during the period, from SGD 0.8/gram on 1 July 2016 to SGD 0.74/gram on 30 June 2017.

BullionStar Financials FY 2017 - Year in Review - Spot silver price development 2016-2017

BullionStar Vault Storage

When our customers store their metals with BullionStar, 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 2017, we stored approximately SGD 119.6 m in precious metals as vault storage provider on behalf of our customers. This corresponds to an increase of 42.2% 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 seeking wealth protection and asset preservation a unique solution to international diversification.  BullionStar's average rating at Google Reviews, with more than 800 genuine customer reviews is an outstanding 4.8.

BullionStar has an average rating of 4.8 on Google Reviews and 4.7 on Facebook Reviews

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’s Extensive Range of Royal Mint Gold Coins and Silver Coins

BullionStar carries an extensive range of investment grade gold bullion coins and silver bullion coins minted by Britain’s famous Royal Mint. The Royal Mint is fully owned by Her Majesty’s Treasury and has the distinction of being the world’s oldest mint.

BullionStar’s range of Royal Mint bullion coins includes gold and silver Britannia coins, gold and silver Lunar coins, and gold and silver Queen’s Beast coins. The Lunar and Queen’s Beast bullion coins are quite recent additions to the Royal Mint’s bullion coin range, and they substantially extend the choice of Royal Mint bullion coins now available to BullionStar customers.

Gold and Silver Britannia

The flagship of the Britannia range is the handsome 1 troy ounce Britannia gold coin, which since 2013 has been minted in 0.9999 fine gold. From its launch in 1987 until 2012, the 1 ounce gold Britannia coin was minted in 22 carat gold (0.9167 fine). In 2015, the Royal Mint also introduced fractional dominations into the Britannia gold coin range in ½ oz, ¼ oz, and 1/10 oz weights.

The latest 2017 issue of the gold Britannia coin commemorates the 30th anniversary of the coin’s launch in 1987, so for some investors, this year’s issue may hold some extra historical significance.

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1 ounce gold Britannia coin, 2017

The Royal Mint also issues a 1 ounce Britannia silver coin, which since 2013 has been minted in 0.999 pure silver. Prior to 2013, the silver Britannia was minted in 0.958 pure silver. The 1 ounce 2017 Britannia silver bullion coin is also the 20th anniversary of the coin’s issue as it was initially launched in 1997.

In addition, the 2017 gold and silver Britannia coins both contain a new security and design feature in the form of micro inscribed radial lines on the obverse of the coin, which are configured as an intriguing radial sunburst pattern behind the Britannia figure.

The Britannia name is derived from imagery of Britannia featured on the reverse face of these coins. The current Britannia imagery displays a standing female symbol of strength embodied in the naval tradition and was designed by English sculptor and coin designer Philip Nathan.

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1 ounce silver Britannia coin, 2017

Although gold and silver Britannias are non-circulation coins, all gold and silver bullion Britannia coins are still classified as legal tender in the UK. For example, the 1 oz Gold Britannia is legal tender with a face value of GBP 100. As legal tender, all Britannia’s are exempt from UK VAT and UK Capital Gains Tax.

Gold and Silver Lunar

In 2014, the Royal Mint launched a new series of gold bullion and silver bullion coins to celebrate the 12 signs of the Chinese zodiac.

Officially called the Shēngxiào Collection, this series is more commonly known as the Royal Mint’s Lunar series. Each of the 12 coins in the series features imagery of animals of the Zodiac on the reverse face of the coins. The imagery has been designed by British Chinese artist Wuon-Gean Ho. The gold Lunar is minted from 99.99% pure gold and is issued in the 1 troy ounce and 1/10 ounce denominations. The silver Lunar coin is minted from 99.9% pure silver and is issued in a 1 ounce denomination.

Each of the gold and silver Lunar series consists of one new coin design per year. The series began with the Year of the Horse in 2014, the Year of the Sheep in 2015, the Year of the Monkey in 2016, and most recently the 2017 gold Lunar Year of the Rooster, a coin which features an attractive design of a Marsh Daisy Rooster. The forthcoming 2018 Lunar design will celebrate the Year of the Dog.

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1 ounce gold Lunar coin, Year of the Rooster 2017

Royal Mint Lunar gold bullion and silver bullion coins are also legal tender in the UK, and, for example, the 1 oz gold Lunar coin has a face value of GBP 100.

Gold and Silver Queen’s Beasts

In 2016, the Royal Mint again expanded its bullion coin range with the addition of the Queens Beasts series minted in gold and silver. The images on this series of coins, which were designed by Royal Mint engraver Jody Clark, are based on statues of 10 heraldic beasts that were commissioned for Queen Elizabeth II’s coronation ceremony in Westminster Abbey in 1953. These statues were themselves based on the extensive history of British royal ancestry and heraldry associated with the British monarch.

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1 ounce gold Queen's Beast coin, Red Dragon of Wales 2017

In gold, the Queen’s Beasts gold coin is available in a 1 troy ounce weight of 99.99% pure gold and a 0.25 troy ounce weight of 99.99% pure gold, while in silver, the Royal Mint has opted to produce a 2 ounce coin minted to a very high 99.99% pure silver standard. This 2 oz silver coin is the Royal Mint’s highest purity silver coin to date.

The Queen’s Beast gold and silver bullion coin range will ultimately consist of 10 coins, with an average of 2 different designs of new legendary creatures issued each year. The first three bullion coin designs launched so far are the 1 ounce Lion of England gold coin, the 1 ounce Griffin of Edward III gold coin, and most recently the 1 ounce Red Dragon of Wales gold coin. Also currently available are a 0.25 ounce Red Dragon gold coin and a 0.25 ounce griffin of Edward III gold coin.

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2 ounce silver Queen's Beast coin, Read Dragon of Wales 2017

Likewise in silver, the Royal Mint has so far issued a 2 oz Lion of England silver bullion coin dated 2016, a 2 oz Griffin of Edward III silver bullion coin dated 2017, and a 2 oz Red Dragon of Wales silver bullion coin dated 2017.

The Royal Mint has now shared with BullionStar the coin design titles and scheduled release dates for the remaining seven legendary beasts in the Queen’s Beast series, which are as follows:

  • 2017 September            The Unicorn of Scotland
  • 2018 March                   The Black Bull of Clarence
  • 2018 September            The Falcon of the Plantagenets
  • 2019 March                   The Yale of Beaufort
  • 2019 September            The White Lion of Mortimer
  • 2020 March                   The White Horse of Hanover
  • 2020 September            The White Greyhound of Richmond

Note that the Royal Mint has also issued a limited-edition proof 10 oz silver Lion of England coin dated 2017 which is the largest weight silver coin ever issued by the Royal Mint.

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Obverse face of 1 ounce gold Britannia coin, 2017

While the reverse faces of the above gold and silver bullion coins feature imagery of Britannia, Lunar zodiac animals, or Queen’s Beasts, respectively, the one consistent feature of all of these coins is that their obverse coin face features a head portrait, or effigy, of the reigning British monarch Queen Elizabeth II. Royal Mint coins issued since 2016 feature a contemporary head portrait designed by the Royal Mint’s engraver Jody Clark. Up until 2015 for a number of years, the portrait used a portrait designed by well-known sculptor Ian Rank Broadley.

Singapore GST and Investment Precious Metals (IPM)

A key driver of gold and silver bullion coin sales in Singapore is whether a particular bullion coin is exempt from Singapore’s Goods and Services Tax (GST). Qualifying coins are defined as Investment Precious Metals (IPM) by Singapore Customs.

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1 ounce gold Queen's Beast coin, Griffin of Edward III 2017

Gold and silver Britannia coins, gold and silver Lunar coins, and gold and silver Queen’s Beast coins are all defined as Investment Precious Metals (IPM) by Singapore Customs, and so all of these bullion coins are exempt from Singapore GST.

The Royal Mint also produces the world-famous Gold Sovereign coin, a coin which has been minted in its modern form since 1817 and which has therefore been minted for some 200 years now. The Sovereign is legal tender in the UK with a nominal value of one pound sterling and features the famous imagery of St George slaying a dragon, imagery which was designed by the Italian engraver Benedetto Pistucci for the first modern Sovereign in 1817.

Currently the Mint produces both a Sovereign and a Half Sovereign denomination, however, both of these coins are minted in 22 carat gold, i.e. with a gold fineness of 91.67%. This unfortunately means that the Gold Sovereign does not qualify as IPM under Singapore Customs Rules because qualifying IPM is defined as containing 99.5% pure gold or higher. The Gold Sovereign is thus not currently on the Custom’s list of exempted precious metals coins.

Although there is strong potential interest among BullionStar’s customers in the Gold Sovereign, for most bullion coin buyers the lack of GST exemption currently makes the purchase of Sovereigns uneconomical relative to other bullion coins on the market. It is possible, however, that Singapore Customs may amend its IPM rules in the future as it considers and evaluates the worldwide popularity of the Gold Sovereign or if the Royal Mint raises this issue with Singapore Customs.

Royal Mint Gold Sovereigns

In the meantime, BullionStar does stock a number of Gold Sovereign proof sets, for example, here and here. These sets, which would be of interest to collectors, consist of 4 coins, namely, the Sovereign, the Half Sovereign, the Double Sovereign (twice the weight of the Sovereign with a nominal value of £2) and a very large ‘Five Pound’ Sovereign (5 times the weight and gold content of the Sovereign with a nominal value of £5).

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Limited edition proof Gold Sovereign, 4 coin set, 2003

In total, this set contains 2 troy ounces of gold. This is because the Sovereign has a gold content of 0.2354 troy ounces, the Half Sovereign has a gold content of 0.1177 troy ounces, the Double Sovereign contains 0.4708 troy ounces, and the large ‘Five Pound’ Sovereign contains 1.177 troy ounces of gold, i.e. 0.1177 + 0.2354 + 0.4708 + 1.177 = 2 troy ounces.

Note also that all newly minted batches of Royal Mint coins, including all of the Royal Mint bullion coins discussed above, are also assayed and tested for metal composition, weight and size as part of the long-standing annual Trial of the Pyx held at GoldSmiths Hall in London which is both a practical and traditional quality control exercise that is presided over by the Master of the Mint and the UK Treasury’s Chancellor of the Exchequer. This Trial is a further guarantee that all Royal Mint bullion coins are of the highest possible quality and workmanship.

Infographic: London Gold Market

This London Gold Market infographic guides you through the secretive OTC wholesale gold market in London. The London Gold Market is the largest gold market in the world and the volumes traded are staggering.

The London Market serves as a price discovery market for the worldwide gold spot price and is home to the London Bullion Market Association (LBMA).

London is also a hub for gold storage with 6,500 tonnes of gold stored in gold vaults around London.

In this infographic you will learn about the importance of the London Gold Market considering

  • Trading Volumes
  • Fractionally Reserved Paper Gold Trading
  • Price Discovery for the Gold Price
  • Gold Vaults
  • Secrecy in the London Gold Market

You can learn more about the London Gold Market at the BullionStar Gold University

London Gold Market Infographic

Infographic London Gold Market

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