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BULLION INSIGHTS

Stay Updated with the Latest News, Events and Insights into Precious Metals Investment

Here in GSC we believe in being ethical and transparent in our business dealings in view of maintaining a long-term business relationship with our clients. We appointed authorised verifier CSD Industries Pte Ltd who are registered under Consumer Product Safety and Accuracy (CPSA) System, Weights and Measures Programme to inspect and verify our weighing scales annually. The verifier will calibrate the scales and place an Accuracy Label sticker on it, indicating the date it was verified. You can refer to the list of the authorised verifiers at https://cpsa.enterprisesg.gov.sg/totalagility/forms/cpssite/PUBSearchAV.form.

During the selling process of your used jewellery with us, our friendly staff will invite you to witness the weighing of your jewellery and a printout slip of the weight you witnessed will be attached to your purchase order. This is to provide checks and balances and to ensure that our clients are getting paid for the full weight of their Gold sold to GSC.

 

Maya

“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:

  1. The Open Price for the day
  2. The High Price as at the time when chart snapshot was captured
  3. The Low Price as at the time when chart snapshot was captured
  4. The Close / Current Price as at the time when chart snapshot was captured
  5. 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.
  6. 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.
  7. The Current Price Level
  8. 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.
  9. Cyclical market are volatile and tend to follow trends in the economy, while non-cyclical market outperform the market during an economic slowdown.
  10. 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

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