Tag Archives: silver bars

Buy Silver Bullion in Singapore

Singapore offers a number of benefits when buying and storing silver. In Singapore, the majority of silver bullion bars and silver bullion coins from the world’s major mints and refineries are exempt from Goods and Services Tax (GST). There are also no taxes or duties on the import or export of silver.

Singapore is also one of the safest and most secure jurisdictions in the world. This has led to the development of an extensive range of secure vault storage services in the country. There are also no reporting requirements when buying and storing silver in Singapore.

While the gold market in Singapore often overshadows that of silver, its important to remember that Singapore hosts an active market for silver as well as for gold.

Singapore: Precious Metals Hub

Singapore's Government actively supports the growth and development of Singapore as a precious metals trading and storage hub, and this applies equally to buying and storing silver as to buying and storing gold. According to a recent Singapore bullion market survey conducted by the SBMA, more that 4200 tonnes of silver were traded in Singapore during 2015.

This active trading is partially due to the fact that there are no licensing requirements on the importation or exportation of silver to and from Singapore. The silver trading market in Singapore is also supported by the presence of a number of active bullion banks, trading houses, and retail bullion dealers.

Furthermore, Swiss headquartered Metalor operates its own precious metals refinery in Singapore which has processing capacity for both silver and gold, and there are a number of large wholesale precious metals storage facilities situated in Singapore, such as at Brinks and Le Freeport which store physical silver as well as gold.

BullionStar offers a wide range of investment grade Silver Bars and Silver Coins

One of the immediate attractions of buying silver bullion in Singapore is the exemption of silver bullion from Singapore's Goods and Services Tax (GST). This means that when you buy silver bars and silver coins from a bullion dealer Singapore, you pay no sales tax whatsoever.

The GST exemption was first introduced by the Singapore Government in October 2012, and applies to Investment Precious Metals (IPM) which are defined as qualifying gold, silver and platinum in the form of coins, bars, ingots and wafers.

Investment silver means silver bars and silver coins that have a silver purity of 99.9% or higher. Qualifying silver bars must be tradable on the international market, be fabricated by a refiner accredited to the London Bullion Market Association (LBMA) Good Delivery List for Silver, and generally, all qualifying bars are required to bear a recognizable hallmark of a refiner.

All silver bullion bars stocked by BullionStar qualify for this GST exemption, so when customers buy silver bullion bars at BullionStar, they can be assured that the prices listed for these silver bars will be free of GST.

Monster Box of Canadian Maple Leaf Silver Coins

For silver bullion coins to receive the GST exemption, they must be legal tender coins in their country of origin. Additionally, only silver bullion coins included on a specific list drawn up by Singapore’s Revenue Authority are currently GST exempt.

From the latest GST guide on exempted IPM, dated July 2017, the list of silver coins that are GST free spans 16 issues of silver coins from a combined 8 countries around the world.

These includes silver coins from the US Mint, Perth Mint, Royal Canadian Mint, Royal Mint, Austrian Mint, as well as silver coins issued by the Mexican national mint, the Chinese State, and a silver bullion coin issued on behalf of the Government of Armenia.

The current list of GST exempt Silver Coins is as follows:

From time to time, the Singapore revenue authority updates this list and adds new silver coins to the list of exemptions. Note that the above links are mostly to the popular 1 oz denomination, but the GST exemption applies to all weight denominations that are issued for each of the qualifying coin types.

Royal Canadian Mint 1 oz Silver Maple Leaf

All of the above silver coins are stocked by BullionStar in all available denominations, and are can be purchased either at BullionStar’s shop and showroom on New Bridge Road central Singapore, or via BullionStar’s online website. So when customers purchase any of the silver bullion coins on this list, they will receive these coins at prices that are free of GST.

Popular Silver Bullion Products

An interesting way to gauge the relative popularity of the investment silver bullion market in Singapore is by looking at BullionStar’s annual sales figures. Each year BullionStar transparently publishes its annual sales figures on its website, including in infographic format.

During financial year 2017, ending 30 June 2017, BullionStar generated full year sales revenues of SGD 186.2 million, with silver products accounting for just over a quarter of total sales (25.7%).

Silver bar sales represented 21% of total sales, with 1 kg silver bars being the most popular bar weight sold, followed by 100 oz silver bars. Silver coins represented just over 4.6% of total sales, and the most popular silver bullion coins bought by BullionStar customers were Canadian Silver Maple coins followed by Australian Silver Kangaroo coins.

Generally speaking, premiums on silver bullion coins will tend to be higher than premiums on silver bullion bars. Likewise, premiums on large silver coins and large silver bars will generally be lower than those on similar bars and coins of smaller denominations.

BullionStar 1 kg Silver Bullion Bars

BullionStar also offers the popular BullionStar branded 1 kg minted silver bar. These high-lustre polished 1 kg silver bars are exempt of GST and are fabricated by the world-famous Heraeus precious metals refinery in Germany. Heraeus is a LBMA accredited refinery.

BullionStar 1 kg Minted Silver Bars

Importantly, there is no spread between the buy price and the sell price on these BullionStar 1 kg silver bars when transacted in 100 units or more, and only a small spread if a quantity of less than 100 bars is bought or sold.

Saving in Grams of Silver

BullionStar’s Bullion Savings Program (BSP) in silver is a novel way to begin saving in silver. Denominated in grams, every gram of silver purchased by a BSP customer is fully backed by BullionStar’s stock inventory. Purchases start from as little as 1 gram of silver.

When a sufficient quantity of BSP grams of silver has been accumulated, customers can then convert these grams of silver to Heraeus 15 kg silver bars at no extra cost. The storage costs of silver in the BSP program are just 0.19% per annum.

Merlion Silver Rounds

BullionStar has recently issued a 1 oz Merlion Silver Round celebrating Singapore’s famous Merlion statue. The imagery on the 1 oz silver round also displays Singapore's national flower, the Orchid. This round silver bullion bar is minted by LBMA accredited refiner Republic Metals Corporation, and is GST exempt since it is a round silver bullion bar in .9999 silver minted by a LBMA accredited refiner.

The Silver Price in Singapore Dollars

During 2017, the silver price measured in Singapore Dollars has traded in a range between just over SGD 21.5 and SGD 26 per troy ounce, with higher prices seen in the first half of the year. Since August, the price has fluctuated in a narrow range between SGD 22 and SGD 23 mark. Overall, a troy ounce of silver in terms of Singapore Dollars is cheaper now than it has been for most of 2017, and now may be a suitable entry point for Singapore based investors buying silver for the first time, or for existing silver holders wishing to accumulate additional physical silver.

Year to Date chart for 1 Troy Ounce of Silver in Singapore Dollars

Silver Storage in Singapore

Singapore is one of the safest and most secure jurisdictions in the world for those who wish to store silver and other precious metals. Due to a strong rule or law and stable prosperous economy, there is virtually no serious crime in Singapore. Singapore’s legal system vigorously upholds property rights, and importantly, there are no reporting requirements on buying, storing or selling silver bullion or other precious metals.

In addition to the Goods and Services Tax (GST) exemption on investment precious metals mentioned above, there are no capital gains taxes on silver or other precious metals in Singapore, no dividend taxes, no inheritance taxes, in fact no taxes whatsoever. All of these factors help explain why Singapore has become well-known internationally as a storage hub for silver and gold, and why a number of secure vault storage providers, such as BullionStar, successfully operate in the Singapore jurisdiction.

BullionStar offers secure vault storage in Singapore for Silver and other Precious Metals

BullionStar's secure storage offering operates a highly security precious metals vault integrated into its downtown Singapore facility. All customer silver bullion bar and coin holdings in BullionStar's secure vault are fully allocated, and customers at all times have full legal title to their stored bullion. Storage charges for silver bars and silver coins with BullionStar are only 0.59% per annum.

All bullion is fully insured, and customer bars and coins are always handled under camera surveillance. In addition, BullionStar employs an extensive series of auditing approaches to continually confirm the existence of all bullion products. Storing silver bars and silver coins in Singapore is therefore an attractive proposition, and at the same time a safe and simple process to undertake.

For a comprehensive overview of the benefits of buying silver bars or silver coins as a form of investment or savings, please see BullionStar guide "Why Invest in Silver".

BullionStar’s visit to the World Money Fair in Berlin

In early February, I visited the World Money Fair in Berlin with a number of BullionStar executives, namely, Torgny Persson, CEO of BullionStar, Luke Chua, COO of BullionStar, and also Michael From, CEO of Liberty Silver in Sweden, a company founded by Mr Persson.

The World Money Fair is the world’s leading numismatic and precious metals convention, and is now in its 45th year. Held each year in the Estrel Convention Centre, part of the Estrel Hotel (Germany’s largest hotel), about 9 kilometers south-east of central Berlin, the 3 day event attracts a crowd of between 10,000 – 15,000 precious metals enthusiasts, as well as hundreds of precious metals exhibitors from all over the world, with a strong representation from the German gold market. The exhibitors range from precious metals refineries and mints, to precious metals dealers, to precious metals manufacturers of technical machinery and equipment for the minting and refining industry (such as coin presses), and finally many precious metals numismatics, coin and bank-note dealers. Hence, lots of bullion and numismatic coin collectors also attend the fair. The World Money Fair was previously held in Basel, Switzerland, up until 2006, at which point it moved to Berlin.

World Money Fair Exhibition Floor - Berlin
World Money Fair Exhibition Floor - Berlin

One of the more intriguing aspects of the convention is that apart from the individual attendees, literally hundreds of precious metals dealers and precious metals suppliers also attend the Fair, primarily to hold meetings and discussions with each other, and also to catch up on the latest offerings from the convention exhibitors. Most of these face-to-face meetings take place within the hotel lobby at the numerous seating areas, cafés, and restaurants that are positioned within the Estrel’s expansive open plan atrium. While most of the meetings are pre-planned, there is an air of spontaneity as customers and suppliers rush around trying to keep to their previously agreed schedules, while bumping into old acquaintances. Some suppliers seemed to literally have numerous back-to-back meetings in the lobby for a good part of the first two days.

I sat in on some of BullionStar’s meetings which included a large German gold and silver refinery, one of Switzerland's biggest gold refineries, and some of the largest worldwide precious metals wholesalers. I found these meetings fascinating as the format was a combination of an informal catch-up, and a more formal discussion of product pricing, business conditions, inventory requirements, bar premiums, and supply channels etc. We also attended dinners on different evenings with a variety of large precious metals suppliers from markets such as Germany, the US and Singapore. I considered it a privilege that during these meetings and dinners I was able to meet some of the top names from the worldwide gold refining and wholesaling sector.

On the first day I took a tour of the exhibition floor. This space consists of an immense series of halls about the size of a few football pitches. There were about 50 national and private gold and silver mints and central banks exhibiting, as well as approximately 250 dealers in precious metals, bullion and numismatics, and about 60 technical suppliers including some large gold refineries. It might seem surprising that central banks, such as Banco de México, would attend such a gathering, but given that many central banks regularly produce their own precious metals coins, it actually makes perfect sense, as they too are in the business of marketing their own coins.

While there were plenty of new releases of limited edition numismatic gold and silver proof coins, I was most interested in the investment bullion gold and silver bar and coin displays, but the vast number of displays (under protective glass) was extensive and varied and would easily take an entire day to see properly. A lot of well-known names were exhibiting, including the Perth Mint, the Royal Canadian Mint, the Royal Mint, South Africa's Rand Refinery, the Austrian Mint, PAMP, as well as MDM Deutsche Munze (Germany), Schoeller (Austria), and China Gold Coin Incorporation. As it's not every day one gets all of these mints in and refineries in the same room, I made sure to chat to staff on the various stands just to get an idea of their views on the precious metals market and their product offerings.

Some of the larger investment gold bar displays in the exhibition were laid on by German precious metals refinery Heirmerle + Meule along with its Spanish subsidiary Sempsa JP, as well as an extensive selection of gold and silver bars from German /  Belgian refinery Agosi (Umicore). Agosi even had a display of base metal investment bars which it calls AgosiBase, covering titanium, aluminium, copper, bronze, and brass bars, as well as Sparkasse gold bars which it produces on behalf of the German Sparkasse (Savings Banks).

Britain’s Royal Mint also had a relatively large gold bar display of recently launched gold bars which use the former Royal Mint Refinery (RMR) logo. At the Royal Mint stand I also learned that its precious metals vault at its headquarters in Llantrisant, South Wales, is built to the security specifications of the Bank of England. Hmmm, could this mean that the Bank of England holds some of its gold not in London, but in the more remote Royal Mint vault, which after all is guarded by Britain's Ministry of Defence police force? The Royal Mint also points out on its vault page that customers can 'rest assured' that it operates "outside of the banking and London clearance systems", which doesn't really inspire confidence in the London precious metals vaulting system.

Royal Mint Refinery gold bars
Royal Mint Refinery (RCM) gold bar display - Berlin

Each year, a different country is the ‘Guest of Honour’ at the Fair. This year, it was the turn of The Republic of Korea, and so KOMSCO (Korea Minting, Security Printing & ID Card Operating Corp), Poongsan (producer of coin blanks for 60 countries around the world) and Poongsan-Hwadong (an official distributor in South Korea for a lot of international mints), had large exhibit stands. While attempting to find out some lesser known facts about South Korea's gold market, I was surrounded by helpful representatives from KOMSCO and Poongsan, but a lot seemed to be lost in translation, although I did manage to learn that they are exporting gold bars to Indonesia, which was news to me.

There were also a lot of other mints exhibiting at the Fair but which were focusing on their 'mint coin' collections, such as Japan Mint, Czech Mint, Royal Dutch Mint, Portuguese State Mint etc. Mints usually use the World Money Fair to launch new coins or announce updates to existing gold and silver coins in their range. Surprisingly, the huge US Mint did not have a stand at this year's exhibition, although I understand that it did in previous years.

BullionStar also brought video recording equipment to Berlin and conducted short interviews with various exhibitors about their views on gold. We also recorded some interviews of our own views on the gold market, material which will be used in forthcoming BullionStar audio-visual releases. Finally, at one of the many banknote dealer stands, I purchased a very new looking 100 billion Zimbabwe Dollar note for the knockdown price of €10, which I think is the highest denomination Zim Dollar hyper-inflationary note ever issued.

Rand Refinery
Rand Refinery display - Berlin

Next Year, South Africa is the Guest of Honour country at the World Money Fair, and Rand Refinery and South African Mint will be ‘guest of honour’ companies representing the South African gold market. The year 2017 is also the 50th anniversary of the launch of the famous Krugerrand gold coin, which undoubtedly explains the timing of South Africa receiving this accolade.