“Gold is Gold! Who cares about the brand, as long as its Gold, you can definitely sell it off! Don’t need to worry!”
Have you heard of that statement before when you purchase Gold? Perhaps a family member with good intentions was just sharing with you his/her thoughts, or a savvy sales person was pushing a seemingly cheaper product. We at GoldSilver Central have definitely heard of that before and even more so in 2020.
Why? Because, In 2020, Gold prices have increased by 36% since the opening price, brightening the spotlight shining upon the yellow metal. Many investors who previously bought physical gold during the last peak in 2011 have stepped forward, eager to finally sell off their holdings, having seen a dismal 8 years of decline in their precious metals portfolio. Some of them, glad to offload the metal at their initial purchase price, never mind the fact that they have lost 9 years worth of interest/opportunity costs along the way.
New investors on the other hand are also searching for alternative investments, with the slowdown in economy, departure from traditional assets such as shares and bonds, and also the generally dismal interest rate worldwide, as a general financial environment. The 36% increase in Gold Prices YTD 2020 , translates to 48% annualized returns, and this is assuming Gold prices remain at current levels instead of rising upwards, lending strength to investing in Gold.
What this means is that interest in the Physical Gold market is being revitalized, as more demand, together with more aboveground supply flows back into the market. With this interest comes more “varieties” of physical gold, notably non-LBMA Bars and Coins.
Refer to this link to find out more about LBMA
https://www.goldsilvercentral.com.sg/blog/what-is-lbma-and-why-is-it-important/
Why do People purchase Non-LBMA Gold?
To be fair, people purchase non-LBMA Gold such as bars or coins for various reasons. They trust the seller to a certain extent or that they believe gold is gold and that its liquid everywhere. For example a popular local jewellery shop could be minting gold bars for local retail consumption. After all, its highly popular in the local populace, everyone would recognize it anyway. Or the gold coin being retailed could be a special limited edition item with a popular design, don’t miss out on getting it now while stocks last! It doesn’t matter who mints the coin, private mint or sovereign mint, Gold is Gold after all right?
People could also purchase non-LBMA Gold because the price discount offered is way below the general market price and it’s a “great bargain”. In some cases even, they know that it is a “ticking time bomb” as there are schemes that guarantee a monthly return from the non-LBMA Gold they purchased but they believe that they can “exit” before they get burnt.
Either way, it does not necessarily always work out well.
Not all Gold is liquid
In the past few months, articles linking international refineries to allegations of tainted gold sourcing have surfaced. These refineries have long standing histories and have been esteemed players in the industry. In recent times, there have been increased scrutiny on refineries, as consumers of Gold are demanding to know that their purchases are ethically sourced. Refineries have thus become more strict on the above ground gold that they buy back from distributors.
Closer to home, a refinery that regularly purchases gold from dealers/consolidators in the region published a notice stating that it would not accept certain types of bars. As a general background, such broadcast lists are quite common and do not usually differ much. Interestingly, the brand “Genneva” is included also in this round’s broadcast. (If you are unfamiliar with Genneva, click here to read more about it.)
For those who previously bought Genneva branded Gold, you know that throughout the years, you may sell it and it is recognized as “Scrap Gold”, meaning you would have a higher discount on it but you still would be able to offload it. However, now with its inclusion into the Non-Approved Gold list by the refinery, metals dealers may not even wish to accept the bars, no matter the discount as they have an increased probability of being unable to sell it off. No respectable dealer operates their business this way and holds ticking time bombs in their inventory. It does not make financial sense.
Suddenly, we have this situation where Genneva Gold that was once accepted as “Gold” but now is no longer seen as “Acceptable Gold”. Overnight, your Gold is no longer acceptable “Gold”. (Bear in mind your Genneva Gold still has a purity of .9999 and its weight did not decrease one bit.) But now, your Gold asset is worth nothing, seeing that you can’t get a price quotation on it. I would postulate that this risk of not being able to exit your investments is too large for a savvy investor.
So if you are holding on to non-LBMA Gold currently, set up an appointment with us to explore your options. We’re not saying you need to sell off all your Gold as quickly as possible, but at least you will know all your options then.
So that’s it. A quick look into whether “Gold is really just Gold”. Stay tuned for more updates.
Articles on Allegations of Tainted Gold Sources
https://www.ft.com/content/4c569519-a3f2-48a7-a267-a639c450ec42
https://www.swissinfo.ch/eng/valcambi-refinery-denies-sourcing–dirty–gold-from-dubai/46019668
Jason
GSC shares Gold price chart to provide daily bite-size technical analysis on Gold market direction in the morning. What can you see from the GSC Morning Call?
Below is a summary of the guidelines to the GSC Morning Call:
- The Open Price for the day
- The High Price as at the time when chart snapshot was captured
- The Low Price as at the time when chart snapshot was captured
- The Close / Current Price as at the time when chart snapshot was captured
- Moving average is a technical analysis tool that smooths out price data by creating a constantly updated average price. On a price chart, a moving average creates a single, flat line that effectively eliminates any variations due to random price fluctuations.
- A Resistance Level is the point on a price chart at which an upward price trajectory is impeded by an overwhelming inclination to sell the asset.
- The Current Price Level
- A Support Level is the point on a price chart at which a downward price trajectory is impeded by an overwhelming inclination to buy the asset.
- Cyclical market are volatile and tend to follow trends in the economy, while non-cyclical market outperform the market during an economic slowdown.
- Market cycle refers to trends or patterns that emerge during different business environments.
Suzane
Would it matter if my bullion doesn’t come with a Certificate?
“Would it matter if my bullion doesn’t come with a Certificate?” This is one of the most common questions we received all the time. While buying bullion with or without certificate is a preference of the clients, it is crucial to understand the meaning or purpose of Certificate of Authenticity.
What is a Certificate of Authenticity?
A Certificate of Authenticity, which is also known as “Cert” in short, is usually a sticker or seal on the items or a printed authentication slip. A “Cert” bears the serial number, refinery hallmark, purity, weight and assayer’s signature. For small bars, the “Cert” is ordinarily set within a laminated card with a transparent design which allows for easy viewing of both the bar’s obverse and reverse and gives protection to the bar. However, there are still some bullion that may not come with a “Cert”.
Why some bars or coins have no “Cert”?
Some bars may not have a “Cert” when they are sold in bulk or they may come with an assay proof, an analysis to test the composition in the precious metals within each shipment. For coins, most of them carry a face value or legal tender value which means that it can be used by the clients to make payments in that country that it was minted. Therefore, the “Cert” is not necessary in all cases.
The existence of a “Cert” will only be useful when the bullion has a unique serial number that matches the “Cert”. Generally, small coins or bars will not have serial number so the “Cert” has no importance.
Government mints such as Perth Mint, Royal Canadian Mint or Austrian Mint do not offer “Cert” for Silver bullion. Nevertheless, some limited edition, commemorative pieces or special release bullion with collectible value may come with “Cert”.
How do I ensure the authenticity of the bullion I bought if they do not come with “Cert”?
The simplest way to ensure authenticity is to purchase from authorized, reputable bullion dealers. As a client, you can always request for basic checks on the bullion bought from the dealer. At GSC, we want our clients to have full confidence that their bullion meet the standards and requirement of purity and we have 3 devices to authenticate the bullion.
Also, if your bullion has no “Cert” issued but accompanied by a LBMA good delivery refinery Assayer mark on it, you can be rest assured of its authenticity. The mints/refineries that fabricated the bullion guarantee its purity and they have been accredited by LBMA to have met the exacting standards for trading on the global OTC market.
Would it matter if my bullion has no Certificate?
This really depends if the bullion originally comes with the “Cert”. If it originally doesn’t come with a “Cert” then the answer is no, it does not matter as it will not affect the buyback value. However if the bullion originally comes with a “Cert”, most bullion dealers will be willing to pay slightly more for the bullion as compared to one that the “Cert” is missing. Usually the difference will not be much. What really matters is the authenticity, purity and condition of the bullion.
We hope that you have a better understanding of the “Cert” now. If you have doubts or queries in buying physical bullion, feel free to send us a message! We are more than happy to assist!
Evonne
For all clients who signed up for an online account via our e-commerce store, you will be provided complimentary access to GSC Live! account where you will be able to view live Gold, Silver and Platinum Spot Prices 24 hrs, 5 days a week. This is also a cash ledger account that clients can view their cash balances with GoldSilver Central, if any. To unlock full features and enable purchase of precious metals via GSC Live!, you will need to fully onboard with us, look through and agree with GSC Live! terms and conditions.
Clients can try out the demo version of GSC Live! and it is absolutely free! With GSC Live!, clients are able to dollar cost average, time their purchase with a smaller trade size and then accumulate and take delivery of the precious metals of their desired weight. GSC Live! enables clients to transact at any time, at their convenience, execute the trade instantly and have the ability of taking physical delivery of what you have purchased.)
For more information, clients may refer to our website for more information.
Suzane
White Gold is made of a mixture of pure Gold and white metals such as nickel, silver and palladium, usually with a rhodium coating. Rose Gold is made of pure Gold mixed with copper and silver alloys. The more copper used, the redder the Gold appears.
The karat we commonly see for both white and rose Gold are 18K (75% gold + 25% other metals) and 14K (58.5% gold + 41.5% other metals). So both White Gold and rose Gold are real Gold just that they have a lesser Gold content. The other metals are added to help strengthen the Gold, give it the desired colour and increase its durability as a jewellery.
As white Gold and rose Gold looks more modern and fashionable, it is usually designed exquisitely with precious stones or diamond settings to meet the changing preferences of consumers. Hence the retail price is most of the time even higher than 24K (99.9% Gold) and 22K (91.6% Gold) yellow gold in per gram basis but the sellback value is lower due to the lesser percentage of gold content, resulting in a wider buy/sell spread. These are the reasons behind the misconception from consumers that white and rose Gold are not Gold and are not worth anything. They are so wrong!
Here at GSC, we take in Gold of different purities, from 9k (37.5% Gold) to 24k (99.9%). You can visit us at (https://www.goldsilvercentral.com.sg/sell-gold-jewellery-highest-prices-singapore-goldsilver-central/) to view the live Gold prices per gram that we will be buying them back at!
Please reach us at [email protected] or call us at +6562229703 if you do have any further queries and we will be more than happy to be of assistance!
Maya
What is LBMA and why is it important?
Today we touch upon a topic that many of us precious metals investors are familiar with – London Bullion Market Association (LBMA). However, how many of us understand exactly the role they play and why we should take notice of it?
Most of us have heard of the term “LBMA Approved” when we invest in physical precious metals. In fact, a common nugget of wisdom is “Don’t buy if it’s not LBMA approved”. We will explore what exactly is “LBMA approved” and if we should allow “LBMA approval” to play an important role in our investment decisions.
London Bullion Market Association (LBMA) is “the pre-eminent standard-setting body for the global wholesale market for precious metals. We have some 150 members based in over 30 countries and they encompass every part of the journey in precious metals production.” It aims to promote good trading practices and sets objective criteria and standards such that physical Gold and Silver bars can be traded efficiently in the wholesale market. To put it in a nutshell, LBMA works together with industry players to ensure that the bars that are being physically traded meets international standards.
One thing to note, LBMA is a trade association comprising of industry players, with the aim of providing good governance of precious metals. It is not a trading exchange.
Why is this international standard important?
One of the tough aspects of accurate jewellery valuation is the vast variation of it. Some are 91.6% pure, some are 99.9% pure. Some come with stone designs which affect the weight, others have hollow inner parts that should not be considered as part of the total weight. While this variation and uniqueness is good for the wearer (no one ever boasts that their gold ring is the same as thousands other after all), it creates a lot of checks and works to be done by jewellery dealers in order to accurately valuate the jewellery. In short, jewellery pieces are NOT STANDARDISED, making it more difficult to be traded in a very efficient manner. LBMA thus plays this very important role in setting standards and ensuring good governance across the precious metals industry. For more information on what exactly they do, please refer to this link.
http://www.lbma.org.uk/what-we-do
What does it mean then to be LBMA approved?
Gold Refiners worldwide obtain accreditation by LBMA, which show that the bars which the particular refinery produces have met the LBMA standard and can be delivered into international financial markets. Similarly, physical investors also follow suit and look out for Bullion that are produced by LBMA Accredited refineries. What this means then is that when end consumers buy an LBMA Good Delivery Bar, they know it meets a certain standard that is internationally recognized.
Bear in mind that accreditation is refinery specific, hence a particular brand for eg, Argor-Heraeus, which have multiple refineries in different locations, would appear multiple times on the Good Delivery List.
You may refer to the list of LBMA members that is published on their website.
http://www.lbma.org.uk/good-delivery-list
Note: Members may cease to be on the LBMA membership list, however they will still fall under the Former Good Delivery list and their bars are still considered to be “LBMA Approved”. Some markets do however take a slight discount in their sellback prices as the liquidity in the local market for Former Good Delivery Bars may not be as high compared to Current Members.
(If in doubt, check in with your local bullion dealer before making your purchase)
So why should I care if my gold is LBMA approved or not?
The international recognition of your gold is very important! After all, one of the main draws is that Gold has no counterparty risks because it is widely recognized. (I.e A gold bar that was purchased in Australia could be sold off in Singapore easily) Thus, when your Gold is non-LBMA approved, that results in it being “lesser recognized”. Any serious Bullion dealer (GSC buys back all forms of Gold, LBMA / non-LBMA / jewellery , etc) would probably still buy your non-LBMA gold, however bear in mind that local markets price their sellback prices differently, with non-LBMA gold bars often being substantially lower than their LBMA counterparts. This is to factor in the melting costs that the dealers have to bear and risks that they carry if they are unable to resell it. The same logic applies also for jewellery pieces also. Hence do not be surprised if your jewellery shop quotes you sellback prices that are a 40% deduction of the international Gold Spot Prices. This covers their expenses and costs also.
You can compare GoldSilver Central’s Sellback prices for jewellery here.
Can I still buy non-LBMA gold bullion/jewellery for investment purposes?
Well, it is your money after all and we aren’t the sort to impose our views upon our customers. Personally, when I go into an investment, I would wish to know where are the screw ups that could kill my investment. And it’s the same here as well. As long as you know what you are getting yourself into, I would say that’s good in itself already. Some serious investors I know do buy into Jewellery pieces still, as they see it as a wearable investment. Yes, there’s higher buy-sell spreads, but I get to enjoy my investment in the meantime.
Point to note in case you are unaware, is in Singapore, non-LBMA Good Delivery Bars / Jewellery are subjected to 7% GST taxation.
Is the LBMA Price Fix related to any of this?
Yes! It was previously known as the London Gold Fix – a benchmark price by which institutions worldwide use to price and agree on with their counterparts. Having a reference price facilitates transactions in the financial markets and the history dates back to 12th September 1919 when the first gold price fix was done. The name was recently amended to LBMA Gold Price and a new commercial model was introduced. It is currently administered by ICE Benchmark Administration (IBA). http://www.lbma.org.uk/lbma-gold-price(Click link to understand more about LBMA Price Fix history)
Read more about LBMA Price Fix in our previous article: https://www.goldsilvercentral.com.sg/blog/10-gsc-reference-price/
So that’s it for today, a very brief look into LBMA as well as how it affects you as a precious metals investor. If you wish to know more about the history / the mechanisms of how LBMA operates, please take a look at their website.
Stay tuned in as we continue our updates.
Fun Fact: Gold and Silver falls under the LBMA framework, but Platinum falls under London Platinum & Palladium Market (LPPM) instead.
Jason
黄金价创历史性新高，掀起“卖金潮”
您是否会面对以下的情况：
- 收到金饰为新婚，满月贺喜礼物，可惜你不带金首饰。
- 首饰断裂，变色，变形了，无法再佩戴。
- 首饰设计过时，放在一旁从不佩戴。
如果您在面对这些情况，撑着黄金价上涨，何不把您的旧金饰， 金条脱售于我们金银中央（GoldSilver Central）并转换成现金?
如何把金饰卖给我们？
- 您可上网预约后，携带您的金饰前往我们的公司让我们进行估价。
- 我们使用仪器评估后，将为你提供最后的实际报价。
- 您可以选择领取现金或银行转账至你的户口。
为何与我们交易？
- 我们以即时黄金交易价格来交易
- 我们保证当日付款。
- 我们提供多种付款方式，包括现金，银行转账或支票等。
欲知详情，请联络+65 6222 9703或电邮至[email protected].
Have you experienced one of the situations below
- Received Gold jewellery as gifts for wedding, baby shower but you don’t wear Gold jewellery.
- Your jewellery can’t be worn anymore, broken or decolourized.
- Your jewellery design is obsolete and is sitting in a box somewhere, safely stored aside.
How to sell Gold jewellery to us
Place an appointment online and bring your items with you to have an evaluation of your gold.
We will provide you a final quotation after the authentication.
We will pay you by cash and bank transfer.
What can we do for you?
We buyback based on live Gold prices.
Same day instant payment guaranteed.
Different payment methods available.
For more information, please reach us at +65 6222 9703 or [email protected]
evonne
