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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".

Bullion coin sales boost revenues of world’s largest Mints

The world’s major precious metals mints are currently riding high on the back of extremely strong global bullion coin demand and relatively buoyant gold and silver prices. These mints are predominantly run as commercial enterprises. The sheer scale of revenues that the US Mint, Royal Canadian Mint (RCM), Perth Mint and Austrian Mint have been generating over the last number of years is eye-opening. Not surprisingly, due to their high value nature, revenues from bullion coin sales account for the lion’s share of total revenues for each institution and have been a core driver of their overall profitability.

Official Bullion Coin Programs

Each of these four mints has an official bullion coin program. The US Mint’s program consists of the production and sales of American Eagle Silver bullion coins, American Eagle gold bullion coins, American Buffalo gold bullion coins, America the Beautiful silver coins, and American Eagle Platinum coins. RCM's bullion coin program comprises gold, silver, platinum and palladium Maple Leaf bullion coins, as well as the recently added MapleGrams.

The Perth Mint bullion program is slightly more extensive and briefly consists of the following: Australian Kangaroo gold and silver coin series, Australian Kookaburra silver coin series, Australian Koala silver coin series, Australian Platypus platinum coin series, Australian Lunar gold and Australian Lunar silver coin series. The flagship of the Austrian Mint's bullion program is the Vienna Philharmonic gold bullion coin series, but the mint also produces the Vienna Philharmonic as a silver and platinum bullion coin, as well as historical re-strikes of original Austrian circulation gold ducats, gold guilders and gold crowns.

Bullion Coin Sales Drive Revenues

In fiscal 2015 (to September 30), the US Mint generated revenues of US$2.12 billion on its bullion coin sales. This represented 57.6% of the Mint’s total 2015 revenues of US$ 3.69 billion. Revenues from gold Eagles totalled $979.6 million, silver Eagle sales added $785.4 million, and gold American Buffalos contributed another $252.2 million in revenues.

In 2015, the RCM’s Gold Maple Leaf coin sales generated revenues of CA$1.41 billion while the Silver Maple Leaf coins added a further CA$687 million, giving a combined revenue of CA$2.1 billion. This represented over 80% of RCM’s total bullion revenues in 2015, and nearly 71% of RCM’s total 2015 group revenues.

The Austrian Mint’s annual report for 2015 is not out yet but will be published in early July. For calendar 2014, the Austrian Mint generated revenues of €1.14 billion. The biggest revenue contributors were gold bullion coin sales of €464.2 million and gold bar sales of €391.7 million. Together the Austrian’s Mint’s gold coin and bar sales represented a combined 75% of total mint revenues.

However, profit margins on the mints’ bullion coin sales are relatively small. For example, in fiscal year 2015, the US Mint only generated bullion income of $61.1 million on bullion revenue of $2.126 billion, so this was a margin of 2.87%. Nevertheless, it’s important to remember that the bullion sales of these mints, both in coins and bars, supply a global distribution network of precious metals wholesalers, bullion dealers and banks on the downstream side, as well as a chain of precious metals suppliers, refineries and gold miners upstream. Not to forget the ultimate beneficiaries of bullion sales, the investors and collectors. There is therefore an entire virtuous ecosystem built around the bullion coin output of these giant precious metals mints.

Furthermore, an often overlooked point is that with all four of these mints, profits from operations can and often do go to the mints’ owners in the form of either transfers or dividends. For three of the mints, their owners are governments. For the Austrian Mint it is owned by a government-owned central bank, which is essentially the same thing.

Maples

Government Ownership and Dividends

The US Mint is part of the US Department of the Treasury, and reports to the Office of the Treasurer. The Mint is structured as a Public Enterprise Fund (PEF) under 31 U.S.C. § 5136 and generates its own revenues without the need for Federal appropriations. Any revenue that the US Mint deems to be excess to it’s needs is transferred to the Treasury General Fund.

For fiscal year 2015 (to September 30), the US Mint transferred $561 million to the Treasury General Fund, however $11 million of this was income from numismatic / bullion products, as the rest was a seigniorage transfer from the sale of circulating coins to the Federal Reserve Banks. But interesting, this $11 million can actually be used to reduce the US Treasury’s budget deficit.

The Royal Canadian Mint (RCM), a federal Crown corporation of the Government of Canada, is 100% owned by the Canadian Government and reports to the Canadian Department of Finance. Like the US Mint, the RCM is not funded by the Government and is predominantly run as a commercial organization except for the Canadian circulation coin program which since 2014 has been operated on a non-profit basis. Although the RCM made a small loss in fiscal 2015 (its year-end is December 31) due to a one-off impairment, it still paid dividends of CA$53 million to the Government of Canada which was a lot higher than previous years due to strong Maple Leaf coin sales.

The Perth Mint, through a holding company called Gold Corporation, is 100% owned by the Government of Western Australia. Western Australia is a state within the Commonwealth of Australia. The Perth Mint group operates on a fully commercial basis and is self-funding. In its fiscal 2015 results to June 30, the Mint made a profit after tax of AU$14 million and also paid a dividend of AU$10.54 million to the Government of Western Australia.

The Austrian Mint (Münze Österreich) is fully owned by Austria’s central bank, the Oesterreichische Nationalbank (OeNB). The OeNB’s capital is itself fully owned by the Austrian government. Although the Austrian Mint 2015 annual report is not yet published, the Austrian central bank has already reported that for 2015, it received a regular dividend of a cool €89 million from the Austrian Mint. In 2014, the Austrian Mint paid the central bank an even bigger dividend of €184.8 million out of its net profit.

collage-silver-coins-and-gold-bars

Silver - Gold Production Ratio

The relative importance of gold and silver bullion coin sales varies across each mint and between years since each Mint’s bullion program differs, and demand patterns ebb and flow.

In 2015, the US Mint sold 801,500 ounces (24.93 tonnes) of gold American Eagles and 220,500 ounces (6.86 tonnes) of gold American Buffalos, for total gold bullion coin sales of 1,022,000 ounces (31.79 tonnes). Silver American Eagle sales reached 47 million ounces (1,461.85 tonnes) in 2015, with another 1,060,000 ounces (32.97 tonnes) of America the Beautiful 5 oz coins sold, bringing total US Mint silver bullion coin sales to 48.06 million ounces (1,494.82 tonnes).

Using a metric of silver ounces sold compared to gold ounces sold, this gives a silver to gold coin sales ratio of 47:1 for the US Mint. In 2015, the RCM sold 953,000 ounces of gold Maple Leaf bullion coins (29.6 tonnes), and 34.3 million ounces (1067 tonnes) of silver Maple Leaf bullion coins, giving a silver to gold coin sales ratio of 36 for the RCM. Therefore applied to 2015, it is justifiable for the US Mint to say that it was the world’s largest seller of gold bullion coins and silver bullion coins.

Although the Austrian Mint hasn’t published its full 2015 bullion sales statistics yet, it did reveal to Bloomberg earlier this year that its combined gold coin and gold bars sales for 2015 totalled 1.32 million ounces (41 tonnes), and its combined silver sales in 2015 totalled 7.3 million ounces (227 tonnes). This would give a general silver to gold ratio for the Austrian Mint of only 5.53, which highlights the Austrian Mint’s relative concentration on gold bullion over silver bullion.

In 2014, the Austrian Mint sold 483,700 ounces (15 tonnes) of gold coins, mainly Vienna Philharmonics, and 410,364 ounces of gold bars (12.75 tonnes). Total gold sold was therefore 894,000 ounces (27.75 tonnes). The Mint’s silver coin sales approximated 144.4 tonnes of silver in 2014. This would give a silver to gold coin ratio of 9.63 and a silver coin to total gold (coins and bars) ratio of 5.2.

Overall, the world’s largest mints are a useful source of income for their government owners. More importantly though, these Mints actually make the valuable and high quality investment gold and silver coins and bars that are in such high demand right now, and that also provide tangible economic benefits such as employing large numbers of people around the world in highly skilled jobs.

To learn more about the world's top Mints, please see full profiles of these Mints which have now been published on BullionStar's Gold University pages:

United States Mint: http://www.bullionstar.com/gold-university/united-states-mint

Royal Canadian Mint: https://www.bullionstar.com/gold-university/royal-canadian-mint

Perth Mint: http://www.bullionstar.com/gold-university/perth-mint

Austrian Mint http://www.bullionstar.com/gold-university/austrian-mint