Tag Archives: secure gold storage

Gold Demand in the Singapore Bullion Market

Singapore has evolved into one of the world’s most dynamic gold trading and storage hubs. Following sustained growth over the last five years backed by government initiatives to develop the country's investment precious metals (IPM) sector, Singapore now hosts a vibrant local and regionally focused gold market comprising a wide variety of precious metals participants. These participants range from retail bullion dealers to bullion wholesalers, from precious metals refineries to secure logistics providers, and from bullion banks to trading houses.

One of the early initiatives that transformed Singapore into a precious metals trading and storage hub came in February 2012, when during a budgetary speech to parliament, finance minister Tharman Shanmugaratnam announced that the importation and supply of investment-grade gold and other precious metals in Singapore would become exempt from Singapore’s Goods and Services Tax (GST). Previously the GST on precious metals in Singapore was 7%.

As reported by Reuters in February 2012, Shanmugaratnam in his budget speech envisaged that:

“We will facilitate the development of gold trading, which can draw on Singapore’s strengths as a financial and trading hub, to meet strong demand for investment-grade gold in Asia.”

The GST exemption on investment precious metals was first introduced on 01 October 2012, and applies to transactions in investment-grade gold, silver and platinum that are in the form of high purity bars, ingots and coins. This means that investment grade precious metals purchased in Singapore are free of GST.

International Enterprise (IE) Singapore, an office of the Singapore Government, has also been active in supporting Singapore’s precious metal sector, and in promoting the benefits of Singapore's gold market internationally. Overall, the main aim of IE Singapore and the government in the bullion sphere is to ensure that Singapore becomes and remains the region's primary bullion trading, storage and transport hub.

Jurisdictional Advantages of Singapore

Apart from the GST exemption on investment precious metals, there are a number of other jurisdictional advantages that have supported the growth of Singapore as a gold trading and storage hub, and that reinforce the logic for buying gold and storing gold in Singapore.

In Singapore, there are no other taxes when buying gold, silver or other precious metals. This means no capital gains tax, no other sales tax, no death tax, in short no taxes. There are no reporting requirements when buying or selling gold or silver or other precious metals in Singapore. This means no reporting requirements to any Singaporean authority and no reporting requirements to any international authority.

There is no GST when importing gold and other precious metals into Singapore, or exporting gold or other precious metals out of the country. Singapore is also famed for its strong rule of law, making the country one of the safest and most secure countries on earth to buy and store gold. If taking delivery or selling precious metals, it is quite safe, apart from the usual precautions, to walk in and out of bullion dealer shops in Singapore carrying your precious metals.

Furthermore, the Singapore legal system is very protective of private property rights, and the nation of Singapore has strong  military capabilities, both of which are reassuring when storing gold or silver in the city-state. Finally, because it's a thriving gold trading hub, with a buoyant wholesale and retail bullion market, Singapore has a very well-developed gold storage and vaulting infrastructure, and is very well serviced by secure transport companies.

Precious Metals Sector Participants

IE Singapore sometimes describes Singapore's bullion market participants as a precious metals ecosystem, not just because of the breath of entities present, but because of the way they interact as a sector. This ecosystem refers to the bullion wholesalers, precious metals refineries, retail bullion dealers and secure logistics providers mentioned above, as well as to the bullion banks and trading houses in the wholesale segment of the bullion market.

A large number of investment banks have a presence in Singapore, and many of these banks are active in Singapore’s gold market, either in a trading capacity or via their wealth management units, or both. Some of these banks include Standard Bank, ANZ, UBS, and JP Morgan. Colloquially, investment and merchant banks involved in the bullion market are referred to as bullion banks. United Overseas Bank (UOB), the Singaporean large-scale bank can also be added to this list.

Another group of players in Singapore’s wholesale gold market are referred to as the “trading houses”, and include names such as INTL Stone, Sumitomo Global Commodities, Mitsubishi, and MKS (the precious metals trading arm of the MKS PAMP group).

Since June 2014, Swiss based precious metals Metalor has also operated a precious metals refinery and production facility in Singapore. This move by Metalor to open a facility in Singapore was directly driven by the GST exemption on imports of precious metals that was introduced in 2012 at the same time as the GST exemption on transactions within Singapore. Apart from Metalor, the Dubai headquartered refinery group Kaloti metals also has a presence in Singapore with facilities for smelting gold.

In the secure logistics and transport providers segment, Brinks precious metals operates a regional base and secure storage facilities in Singapore serving Singapore, Malaysia, Brunei, Indonesia and the wider Asian region. Malca Amit also has a storage facility in Singapore, which is located in the Singapore Freeport, near Singapore's Changi International Airport. This Singapore Freeport, or 'Le Freeport' is a secure valuables warehouse complete with vaults which some of the bullion banks in Singapore also use to store precious metals.

Singapore, a thriving gold trading and gold storage hub

A Vibrant Gold Trading Hub

According to the latest precious metals industry survey of Singapore's IPM sector, approximately 656 tonnes of gold and 4253 tonnes of silver were traded in Singapore during 2015. See survey table in Metalor presentation here.  Much of these quantities would reflect trading activity between the large banks or involving the trading houses, and also gold flowing through the refineries operations of Metalor and Kaloti. For example, the trading house INTL could buy gold mining output from Indonesia and have it shipped to Metalor's refinery in Singapore for processing. Metalor is said by industry sources to trade over 100 tonnes of gold per annum.

The survey also notes that the figures reflect sales that were mainly to Singapore, Indonesia, Thailand and Hong Kong but also to China and India, the Philippines and Malaysia. As such, a lot of the physical precious metals trading that goes through Singapore is in the form of supply flows for the wholesale markets in South East Asia and the wider Asian region.

According to IE Singapore data, 291 tonnes of gold was imported into Singapore in 2016, and 397 tonnes was exported. This gives a combined 2 way flow of 618 tonnes.

Most recently, according to a recent Thomson Reuters GFMS report, “Singapore Bullion Flows Surprise to the Upside with a Surge in Shipments in 2017”, for the year to the end of September 2017, gold bullion imports into Singapore reached 224 tonnes. Major import sources were Switzerland, Japan, Hong Kong and Australia. Some of this import activity was gold flowing through Singapore being converted into kilo bars destined for China, but some of it was also gold being smuggled out of China that made its way to Singapore.

GFMS says that apart from China, other export destinations for gold that leaves Singapore includes Cambodia, Thailand and Malaysia. As the figures reveal, there is therefore a huge amount of gold trading in Singapore and a huge amount of physical gold moving in and out of Singapore on an annual basis.

Singapore Retail Gold Demand: Consultancy Estimates

The world's major physical gold wholesalers are also present and active in Singapore,. These wholesalers supply the retail sector in Singapore and the wider South-East Asian region with investment bars and coins and sometimes maintain local inventories of precious metals in Singapore to satisfy demand. These wholesalers include Dillon Gage, which has an office in Singapore, MKS, also with an office in Singapore, and A-Mark, which although it doesn't have an office in Singapore, is an active supplier into the Singaporean bullion market.

Singapore's retail bullion market is active and thriving, and has grown strongly since 2012. It is currently served by BullionStar and a number of other bullion dealers.

A number of precious metals consultancies make estimates on retail physical gold demand in the world's key gold markets, including estimates for retail gold demand in Singapore. These consultancies include Thomson Reuters GFMS, Metals Focus, and the World Gold Council (WGC). Note that the World Gold Council does not gather its own data, and since 2016, the WGC has used Metals Focus to provide all gold supply and demand data for WGC publications, such as the WGC’s ‘Gold Demand Trends’ publications.

In its supply and demand data, GFMS defines physical gold demand as a combination of jewelry, industrial, central bank and retail demand. Retail demand is further divided into gold bar demand and gold coin demand. The World Gold Council / Metals Focus definitions are mostly similar to GFMS, and define a demand category called investment gold, or which “total bar and coin demand” is a sub-sector, and further breaks this down into physical gold bar demand and official gold coin demand, 'official' referring to legal tender coins issued by or on behalf of national mints.

Although each consultancy has its own methodology, and although none of the consultancies publicise the exact way in which their estimates are arrived at (since the data methodologies are commercially valuable), their overall approaches to estimating retail gold demand (gold bar demand and gold coin demand) in a given national market would be similar, and would involve extensive 'field research', i.e. talking to the commercial entities that make up the gold market.

As an example, GFMS' first step is to identify which entities are present in that gold market, for example refineries, banks, wholesalers, and retailers. They then identify those entities that together could provide data giving a full picture of retail gold demand in that market, and then go out and actually interview and talk with representatives from the identified companies.

This also seems also to be the approach Metals Focus follows, since the World Gold Council confirms in its supply and demand data methodology note that Metals Focus uses extensive field research that consists of talking to a network of contacts in the physical gold supply chain. For estimating demand data, this would include talking to refiners, official mints, bullion banks bullion dealers, and secure transport companies. The WGC actually states in its methodology note that:

“Investment demand will be measured using information from mints, manufacturers, retailers, wholesale dealers, banks etc”

Surprisingly, for collecting data on retail gold demand in Singapore, the major consultancies such as GFMS and Metals Focus do not request this data from major retail bullion dealers in Singapore such as BullionStar. Who they actually collect their demand data from is unclear because this type of information is treated as a trade secret by the consultancies. But using a little guesswork, we assume that their logic is to talk to key players in the supply chain (such as refiners and wholesalers) who in their view will provide enough information and feedback with which to create their retail gold demand estimates.

So the consultancies probably talk to the main suppliers of gold into Singapore's retail gold market, such as the Swiss refineries, and the national mints (e.g.Perth Mint and Royal Canadian Mint) and ask them how much gold was sent into Singapore during the year. In a similar fashion, they most likely ask the main gold wholesalers such as A-Mark and Dillon Gage the same questions.

At times, the consultancies probably also chat to the bullion banks and trading houses to glean information on what gold, if any, these entities would have supplied into the ‘retail’ market. As to how the consultancies draw the line between the retail gold market and the high net worth gold market is unclear. Because if a high net worth wealth management client of a bank (such as UBS or UOB) buys physical gold in a transaction facilitated by UBS or UOB, is this captured as ‘retail’ demand. The answer is probably not according to the logic of the consultancies, but at the same time this demand is  not institutional demand either.

Note that in preparing this article, we talked to GFMS and Metals Focus briefly about their retail gold demand estimates. GFMS and Metals Focus were both courteous and helpful and responded speedily.

The World Gold Council's 'market intelligence group' was also approached with similar questions. After repeated attempts to approach the World Gold Council, they eventually acknowledged our request, but then refused to engage and ignored subsequent emails.

Gold Market Demand Figures

For 2016, GFMS estimates that Singapore retail gold bullion demand (comprising bar and coin demand) totaled 6.5 tonnes. For the current year up to the end of September (i.e. Q1 – Q3 2017), GFMS estimates retail demand was 5 tonnes.

For 2016, the WGC's 'Gold Demand Trends' data estimates that  total gold bar and gold coin demand in Singapore totalled 5 tonnes,  while its demand estimate for the first three-quarters of 2017 *Q1 - Q3) totalled 3.5 tonnes.

At first glance, these consultancy numbers look to be on the low side. This is because, based on internal data, BullionStar sold approximately 2.3 tonnes of gold bullion (bars and coins) during 2016. Based on the GFMS and World Gold Council figures, This would mean that BullionStar accounted for 35% of the total 2016 estimate of GFMS, and 46% of the total estimate from WGC / Metals Focus. This would also mean that based on GFMS data, all other bullion dealers in Singapore between them only sold 4.2 tonnes of gold in 2016, and based on WGC figures, all other bullion dealers in Singapore only sold a combined 2.7 tonnes of gold in 2016.

When the consultancies calculate retail gold demand, they claim to take into account the buy-back rate on gold, so as to estimate net gold demand for a particular year. This makes sense. For example, if a bullion dealer sold 1 tonne of gold to customers in a year, and if that same dealer bought back 0.4 tonnes of gold back from customers during the same year, then the net sale quantity would be 0.6 tonnes for that year. However realistically, its hard to understand how the consultancies would know buyback rates since they don't talk to all the major retail bullion dealers in Singapore.

For the record, BullionStar's internal data shows that for 2016, approximately 3 grams on every 10 grams sold was purchased back, meaning that the net tonnage of gold sold by BullionStar in 2016 would have been approximately 1.6 tonnes of gold during 2016.

Each year BullionStar publishes its annual financial results in a transparent and informative way, and also publishes commentary and infographics about these results where can be seen here.

General estimates can also be made on how much gold other bullion dealers in the Singapore gold retail market sold during 2016. This can be done by looking at the sales revenue of each dealer (since most of these companies file financial accounts with the Singapore companies office), and then making assumptions on what percentage of these annual sales were in gold bars and coins, as opposed to silver bars and coins and other products. Then the revenue figures representing gold can be divided by the average gold price during the year to yield quantities sold.

However, when this type of calculation is preformed on the revenue figures of the retail bullion dealer of the Singapore gold market, it yields figures that are higher than those of the consultancies.

Conclusion

So are the gold demand estimates of the major precious metals dealers accurate or under-estimated? The short answer is that the consultancy estimates look to be on the low side. However, the consultancies are not transparent about how they collect data, so the validity of their data collection techniques can't be appraised or tested. Only by giving a full disclosure would it be obvious that they are underestimating figures. However, they will never do this because they are in the business of selling data (i.e. monetising data). If it was proven that some of the consultancy data was inaccurate, it would lower the commercial value of all of their data offerings.

Another issue is how to define the retail segment and retail demand in Singapore and elsewhere. Again this comes back to the fact that the consultancies don't divulge what their data is based on. If we said that the consultancies are under-estimating retail demand because of X and Y, they could theoretically respond by saying "Ahh, but we don't define X and Y as retail demand". But because no one except the consultancies knows how they collect their data, and they will never divulge the sources of their data, such a debate would be virtually impossible to ever have.

28 Reasons to Buy Physical Gold

Throughout human history, gold has constantly emerged as an unparalleled form of savings, investment and wealth preservation. Due to its unique characteristics and features, gold has inherent value and cannot be debased. When holding physical gold, there is no counterparty risk or default risk. Wealth in the form of gold can also be held and stored anonymously.

From its ability to retain its purchasing power over time, to its safe haven status in times of financial turmoil and uncertainty, to gold's ability to diversify investment risk, there are many and varied reasons to own physical gold in the form of investment grade gold bars and gold coins.

1. Tangible with Inherent Value

Physical gold is real and tangible. It is indestructible, impossible to create artificially, and difficult to counterfeit. Mining physical gold is arduous and costly. Physical gold therefore has inherent value and worth. In contrast, paper money doesn't have any inherent value.

2. No Counterparty Risk

Physical gold has no counterparty risk. When you hold and own gold bars and gold coins outright, there is no counterparty. In contrast, paper gold (gold futures, gold certificates, gold-backed ETFs) all involve counterparty risk.

3. Scarcity

Gold deposits are relatively scarce across the world and difficult to mine and extract. New supply of physical gold is therefore limited and explains why gold is a precious metal. Gold's scarcity reinforces it's inherent value.

4. Cannot be Debased

Because of its physical characteristics and features, gold cannot be debased, and gold supply is immune to political meddling. Compare this to fiat money supplies which are constantly being debased and destroyed via deficit government spending, central bank quantitative easing and financial system bailouts. On a survivorship scale, gold has far outlived all fiat currencies by thousands of years.

5. A 6000 Year History

Gold has played a central role in society for thousands of years from the early civilizations of ancient Egypt, right up to the contemporary era. Gold has facilitated international trade throughout history, has been directly responsible for the economic expansion and prosperity of numerous civilizations throughout history, and has even been, due to gold exploration and mining, the direct catalyst for the growth of some of today’s best-known cities such as San Francisco, Johannesburg, and Sydney.

6. Store of Value

Gold is a preeminent store of value. Physical gold, in the form of gold bars or gold coins, retains its purchasing power over long periods of time despite general increases in the price of goods and services.

In contrast, fiat currencies such as the US Dollar are not stores of value and their purchasing power consistently becomes eroded by inflation or the general increase in the price level. Fiat currencies have a long history of either becoming totally worthless and going out of circulation, or else becoming completely debased, such as the US dollar, while remaining in circulation.

Since the creation of the US Federal Reserve in 1913, the US dollar has lost over 98% of its value relative to gold, i.e. the US dollar has lost over 98% of its purchasing power relative to gold.

Since 1913, the US Dollar has lost more than 98% of its value, while gold has retained its value.

7. Long- Term Inflation Hedge

Physical gold’s ability to retain its purchasing power over time is sometimes referred to as the “Golden Constant”. This reflects the fact that gold’s purchasing power is constant over long periods of time. This ‘constant’ exists because the gold price adjusts to changes in inflation and future inflation expectations. Therefore, physical gold is a long-term hedge against inflation.

8. A 2500 Year Track Record as Money

Because of its ability to retain value and act as a store of value, physical gold has been used as money for over 2500 years. Gold coins were first issued in the Lydian civilization in what is now modern Turkey. Subsequently gold was used as a stable form of money in Persia, ancient Greece, ancient Rome, the Spanish and Portuguese Empires, the British Empire, and right through to the various international gold standards of the 20th century.

It was only in August 1971 that the US famously suspended the convertibility of the US dollar into gold, a move which triggered the debt fueled expansion that is still having repercussions within today’s monetary system.

To put gold’s monetary importance into perspective, for 97% of the last 2500 years, gold has been chosen by numerous sophisticated civilizations as the form of money par excellence and an anchor of stability, precisely because of its ability to retain its value.

9. Safe Haven

Physical gold acts as a safe haven asset in times of conflict, war and geopolitical turmoil. During the financial market stresses and heightened uncertainties caused by wars, conflicts and turmoil, the counterparty risk of most financial assets spikes. But since physical gold does not have any counterparty risk, investors rush to gold during these periods so as to preserve their wealth. This is analogous to sheltering in a safe harbor. Gold can thus be seen as a form of financial insurance against catastrophe.

10. Portable Anonymous Wealth

Gold bars and gold coins combine high value with high portability. In times of conflict and war, gold bars and gold coins are ideal for transporting wealth and savings across borders and within conflict zones in an anonymous fashion.

11. Universal Acceptance

Gold is universally accepted as money across the world, with the highly liquid global market always providing ample sales opportunities for gold bars and gold coins. This means that whichever city you are in across the world, you can always sell or trade your gold bars and gold coins.

12. Emergency Money

Military personnel are often issued with gold coins that they carry with them in conflicts zones as a form of emergency universal money. For example, the British Ministry of Defense often issues RAF pilots and SAS soldiers with Gold Sovereign coins to carry on their persons during combat missions and activities, such as in the Middle East.

Worthless paper Currencies vs the Inherent Value of Owning Physical Gold

13. Outside the Banking System

In the current era of global financial repression, physical gold is one of the few assets outside the financial system. Gold is not issued by any monetary authority or central bank or government. Because its not issued by any government or central bank, gold is independent of the banking system. Fully owned physical gold, if stored in a non-bank vault or held in one’s possession, is outside the banking system.

14. No Default Risk

Unlike a government bond, there is also no default risk with gold because it is not issued by any authority that could default. Gold bars and gold coins are no one else’s liability. Physical gold cannot go bankrupt or become insolvent. Therefore, there is no need to have to trust any other party when holding physical gold.

15. Portfolio Diversification

Adding an investment in gold to an existing portfolio of other investment assets such as stocks and bonds, reduces the volatility (risk) of the investment portfolio and can increase portfolio returns. This is because the gold price has a low to negative correlation with the prices of most other financial assets, because gold is less influenced by business cycles and macro-economic cycles than most other assets.

Numerous empirical studies by financial academics, as well as industry bodies, such as the World Gold Council, have validated gold’s role as a strategic portfolio diversifier. Optimal allocations to gold in multi-asset portfolios have found to be in the 5% to 10% range.

16. Currency Hedge

There is generally an inverse relationship between the gold price and the US dollar, in that the gold price generally moves in opposite directions to the US dollar. Therefore, holding gold can act as a currency hedge of the US dollar, and help manage the currency risk of portfolios denominated in US dollars.

17. Gold's Metallic Properties

Gold has many and varied metallic properties. These properties provide gold with many technological and commercial applications and uses, which in turn contribute as additional demand drivers in addition to the investment and monetary demand for gold.

Gold is highly ductile (can be drawn into very thin wire). It is also highly malleable (can be hammered and flattened into very thin film). Gold is a very good conductor of electricity and heat. Gold does not corrode or tarnish. It is chemically unreactive and non-toxic to the human body. Gold has a high luster and shine, and an attractive yellow glow.

These properties explain gold’s use in electrical and electronic wiring and circuits (e.g. computers and internet switches), its use in the medical and dental fields, gold’s use in solar panels, space travel, and gold’s traditional uses in jewelry, decoration, and ornamentation. With new technological uses being found for gold all the time, gold's demand pattern is diversified and underpinned by its commercial importance.

18. Physical gold - A tiny fraction of Paper Gold

The London wholesale gold market and the US-based COMEX gold futures market generate huge trading volumes of paper gold that dwarf the size of the physical gold market. However, these markets only trade derivatives on gold (futures and unallocated positions), representing fractionally-backed and unbacked claims on gold that could never be convertible into physical gold by claim holders.

In a scenario under which these paper gold markets became unsustainable, the prices of paper gold and physical gold would diverge, with the paper gold markets ceasing to trade and collapsing, and only physical gold retaining any real value. Physical gold is therefore an insurance against the collapse of the world's vast paper gold markets.

19. By Definition - Not an ETF

Physical gold Provides all the benefits that gold-backed Exchange Traded Funds (ETFs) do not. ETFs provide exposure to the gold price, not to gold. Holding physical gold is by definition direct exposure to gold. With most gold-backed ETFs, you cannot convert the units into gold and take delivery of the gold, and in many cases, the locations of the vaults are not even known. If holding physical allocated gold bars or gold coins in a vault, such as with BullionStar in Singapore, you can always take delivery.

Gold ETFs have many counterparty risks since there are many moving parts in an ETF such as a trustee, a custodian, and a sponsor / issuer. Physical gold has no counterparty risks. When you hold a gold-backed ETF, the quantity of gold backing the ETF declines over time due to management fees being offset against the gold holdings. When you hold physical gold, you always remain with 100% of the actual gold you first purchased. There is no erosion of holdings.

20. Anonymous Storage

Gold can be stored anonymously, either in your possession within your house or property, or in a vault in a jurisdiction, such as Singapore, that has no reporting requirements. Since gold has a high value to weight ratio, storing gold does not take up much space.

21. Independent of Internet

Owning physical gold is not reliant on having internet access and access to electronic wallets and cryptocurrency exchanges. Furthermore, gold cannot be stolen by hacking an electronic address or by transferring or deleting a number in a computer.

The Benefits of Owning Gold Coins and Gold Bars

22. Real Gold is Measured by Weight

Physical gold is measured in weight, not through a number set by a politician or central banker. When you buy a 1 Kilo gold bar, or a 10 Tola gold bar, or a 1 troy ounce gold coin, or a 5 Tael gold bar, you will always have that gold bar or gold coin, irrespective of the fluctuations of fiat currencies.

While thinking of the value of physical gold in terms of a fiat currency might be convenient, a better way is to think of a gold holding in terms of weight.

23. Coins and Bars - Build a Collection

Buying investment gold bars and bullion gold coins allows you to build a diverse collection of bars and coins that are at the same time a fascinating pastime and a form of investment and saving.

Bullion gold coins from the world’s major mints are beautifully illustrated and often have a connection to history. Investment gold bars from the world's major gold refineries are distinctively different from each other and you can vary a collection by cast or minted bars, and a selection of weights.

24. Physical Gold Feels like Real Wealth

Physical gold feels like real wealth. When you hold ten 1 ounce gold coins in your hand, you intrinsically know that you are holding real wealth, gold that is scarce and that has been costly to produce.

25. Gold as Loan Collateral

Gold can be used as loan collateral. Since gold is highly liquid and valuable, it can be lent and used as a form of financing, and as a way of generating interest. The wholesale gold lending market between central banks and bullion banks is highly active. Likewise, retail gold holders can also in various ways lend their gold to receive financing or interest, with new innovations to do this arising all the time.

26. Central Banks hold Gold

Although the world’s central banks like to downplay the importance of gold because it competes with their fiat currencies, most central banks continue to hold substantial amounts of physical gold bars and gold coins in vaults around the world. They hold this gold as a reserve asset on their balance sheets, and they value this gold at market prices.

Like private gold investors, central banks hold physical gold because it is highly liquid, it lacks counterparty risk, and because gold is a safe haven or ‘war chest’ asset that acts as a financial insurance in times of crisis. Central banks also hold gold for the unpublished reason that if and when gold re-emerges at the centre of a new monetary system, these very same central banks will not be caught out having no gold.

27. Gold for Gifting

Gold coins and small gold bars make great gifts and presents, and gold is a traditional form of gifting in many societies around the world. Gifting a gold coin or small gold bar to mark a birth, or anniversary, or a wedding or other special occasion, is an ideal present that will be highly appreciated by the recipient.

28. Gold for Inheritance

Gold bars and gold coins are a great form of inheritance for your children and family members. Because gold is real, tangible, valuable, and has a highly liquid trading market, it is an ideal asset for inter-generational wealth transfers. Because physical gold is fabricated in convenient weight denominations, such as troy ounces and kilograms, it can be distributed equitably among recipients, and specified equitably in wills and trusts.