Tag Archives: profit

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.

fin7

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 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.

fin7

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.