CNY 2021 is no doubt a more muted event this year. Now that the first few days are over and your kids have counted majority of the hongbaos, here’s some tips to maximise their hongbaos.

 

Teach your kids cash management.

Ultimately, it’s your kids’ finances. They should be part of the process of maximizing it. Take this chance to teach children about the importance of cash management and how they could allocate their money according to their needs and wants. One way would be to split up their money into several “buckets”; spending, savings, investments and filial piety. What better way to get them started on giving back to their parents!

 

Deposit them into a Savings Account

This used to be a no-brainer! Savings are important but with interests at the low rates savings account currently are, at 0.05% p.a., and global interest rates remaining low for the foreseeable future, there are much better ways to grow your kids’ wealth.

That said, emergency liquid funds are important for rainy days. So do allocate some portion into their savings accounts still.

 

Invest them into a Blue Chips Plan or ETFs

A very simple way of using dollar cost averaging (DCA) to “stack” your investments. Multiple banks offer the blue chip accumulation plan in their services and setting up a monthly automation is very straightforward. These banks also usually have investment arms which allow one to easily set up a CDP account and brokerage account for investments into ETFs or specific shares.

Wondering about the merits of DCA? That’s a topic altogether for another time.

 

Invest the money into Gold

With Gold increasing by 25% in 2020 and the rest of the precious metals classes enjoying similar if not more capital gains, it’s a good time to look into diversifying into other asset classes too. Many used to think that buying precious metals would be very traditional and outdated. Now, there’s much more convenient ways to buy into precious metals.

 

Buying via the retail route

Buying Precious Metal bullion has never been easier than now. Register account online and you can then scroll through the website and select what you want! All these in less than 5 minutes. You can even choose delivery to your doorsteps! Alternatively, head down to the retail shop to do your collection. Do remember to make appt here first and remember to practise social distancing!

A side note here, we know of one family who comes down after CNY every year and the kids literally bring along their hongbaos and swap them to silver bullion. If you are reading this, you know who you are 🙂

 

Daily accumulation system via mobile

Ever thought of diversifying your portfolio but was unable to due to cost or practicality constraints. (It is way too expensive to buy 1g gold, 1g silver and 1g platinum) Well now, that’s resolved with the use of your mobile phone.Set up an autosave plan for all three metal types from as low as $0.10 per day.  And it only takes 3 minutes on your mobile phone. Pause anytime with no penalties and physical redemption is as easy as selecting the physical item and checking it out! You now have the power to set up a diversified and customized portfolio at very low costs.

 

So that’s it, quick and simple tips on how to maximize your children’s hongbaos. After all, the real huat starts with not buying 4D but by making smarter day-to-day personal finance decisions for your future!

 

Jason

 

Happy Chinese New Year Everyone!

It is the festive time of the year to receive and giving out little red envelopes. These little red envelopes are called “Hong Bao” 红包 in Mandarin, “Ang Bao” in Singapore and “Lai See” in Cantonese. The money inside is called “压岁钱”, which is also known as “lucky money” or New Year’s money.

Saving your “lucky money” by accumulating precious metals holdings

“When you have nowhere to spend, don’t spend on handbags, invest in GSAP”

There is no better time to start the habit of saving and investing money at a regular basis than at Chinese New Year because you have a good sum of extra cash to get started.

Saving for the future instead of spending right away is a good way to start. Time to stop spending your ang bao money on things that you do not actually need. Try saving and accumulating with our GSC Savings Accumulation Program (GSAP) instead. Let your “lucky money” work harder by investing in GSAP!

Below is a summary how GSAP works:

1. Accumulate min. $100 per month.
2. Minimum period to commit: 1 cycle (3 months)
3. Accumulate daily on business days based on GSC 10am reference price automatically.
4. You may refer to the 10am reference price through our website.
5. Helps the client buy more when prices are low and less when prices are high.
6. Dollar Cost Averaging method.
7. Upon the maturity of the savings plan, clients can choose to take physical delivery of your accumulated holdings or sell to encash it.
8. The only cost incurred is the storage charges of 2.5% per annum. It will be calculated daily as your holdings increase day by day.  (Based on 10am reference price as well)
9. The storage charges will be debited from your accumulated holdings on the 1st business day of the following month.

 

“You may decide to indulge when you have won the fight,

but don’t forget GSAP when the time is right.”

 

The right time is here. Contact us if you have any other enquires or you may also sign up through the form here!

Cheryl

 

I believe most have read about the recent Reddit group that has spurred on many other retail investors to short squeeze stocks that hedge funds have big short positions in. The idea is to drive prices of the stock high enough to force the hand of these hedge funds to buy back the stocks they have borrowed to sell, at a loss.

Why didn’t this work with the Silver Market?

The commodities market doesn’t work the same way as the stock market. The shorts reported by CME or Commitment of Traders Report (COTR) does not mean that all of these shorts are speculative positions or positions that traders have placed to bet that prices will go south for them to make a profit. Most of these short future positions are to hedge physical Silver exposure or miners to secure prices in the future to deliver mined Silver against. In other words, these short future positions are being offset with physical bars and coins held in their inventory.

Another point to note, we do not know what is on the trading book of each bank and they might have positions not pushed out to the market yet as they have taken on a big position. For example, the trader in a bank has bought a sizable amount of Silver from a fund and yet to sell it out in order not to move the Silver price too drastically. This ride up in Silver prices allows them to hedge out their risk at a much higher profit and due to the larger number of buyers available, it will also allow them to get out of their positions even earlier and at a tidy profit.

Bottom line is, we do not see the full picture from the reports provided via CME or COTR.

The financial institutions raised margins to prevent Silver prices from soaring, is this true?

Margins were raised by 18% by Comex but this was not because the institutions wanted Silver prices to stay low. Many brokers followed suit. Margins for trades is a function of volatility. The higher the volatility the higher the margins required. This is for risk management and also to protect the interests of investors. This will happen for any asset class not only for Silver. This often has been misconstrued by many to think that the institutions did this on purpose for their own gains.

 

Physical Silver premiums shot up sharply, does this mean there are not enough physical Silver?

Physical Silver premiums came up at least 30% or more but it does not mean that physical Silver have all ran out. The sudden sharp increase in physical demand from clients globally due to this Silver squeeze coupled with the Covid-19 measures implemented in mints and refineries lead to a short term tightness of physical Silver bars and coins. There are still large Silver bars available in many vaults around the world but they are not the preferred choice for retail investors.

The manpower restrictions due to Covid-19 also meant that production schedules for Silver finished products have to be extended especially with this huge increase in demand. These factors led to the increase in premiums and it will ease once the Silver orders backlog has been met.

 

Brian

 

 

We have been asked this question very frequently, “My Silver tarnished. Would it affect the buyback value?” Today we will discuss about this topic and try and answer this question.

 

Why does Silver tarnish?

Tarnishing, also called toning is a natural reaction between Silver and hydrogen sulfide that is naturally present in the air and this causes the metal to become discoloured. Besides, touching Silver with our bare hands may cause tarnishing too, due to the oils, sweat or moisture from our skin. Thus, if you are storing your Silver in a place with high humidity, tarnishing is to be expected.

 

In Singapore, chances of Silver getting tarnished is way higher. This is due to Singapore being situated near the equator and has a tropical climate that has frequent rainfall, high temperatures and humidity all year round.

 

 

Does Silver tarnish affect its value?

No. Tarnishing does not affect the value or cause devaluation of the Silver bullion. Silver bullion like bars and coins are usually valued by the weight, hallmark and purity. That being said, many dealers do take a discount off the Silver price for tarnished Silver bullion as it cannot be resold and have to be sent for melt. This would incur additional costs that the dealer will have to bear, this explains the discount quoted.

 

 

How to better store your Silver?

To avoid quick tarnishing on Silver, they best approach is to store it in a cool dry place. For example coins, you can keep them in a tube or capsule and as for bars in zip lock bags. If you do not have tubes or capsules, fret not as you can also store them in a plastic food container and keep them in a cool dry place. Any protection against moisture in the air would help slow the tarnishing process, remember not to keep them next to a humidifier or in a warm area such as in a kitchen.

 

Besides, you can also place some dehumidifying crystals packet in the storage location to absorb the excess moisture and this too helps to slow down the effect of tarnishing.

 

As mentioned earlier, handling Silver with bare hands will cause tarnishing. Hence, we advise clients to wear cotton hand gloves when touching Silver to make sure your Silver will not expose to the sweat, oil or moisture.

 

Here is a simple explanation about Silver and tarnishing. Hope it helps to ease your concerns. If you still have any doubt and questions in purchasing Silver, feel free to contact us at +65 62229703 or enquiry@goldsilvercentral.com.sg.

 

Fun fact: We do have a client who actually bought a large Silver bar (1000oz) and placed it at the garden as a seat!

 

Evonne

If you are reading this, you are likely interested in Precious Metals. At GoldSilver Central, we take care of your needs. This means we actively find ways to value add to your portfolio. And we’ve discovered that Precious metals investors can be categorized into 2 categories:

1. Profit & Loss
2. Asset on your Balance Sheet

 

Let’s analyze this further.

 

1. Profit & Loss Category

To you, gold is like any other investment, you want to achieve capital gains from it in the shortest time frame possible. Of course physical gold has additional physical premiums on top of the market spot price, but if you foresee the demand will exceed supply in the near term and given the increasing rate of uncertainty in the economic market, having exposure to gold, the world’s oldest asset and it being a safe haven, is a no brainer for you. And you will make a quick profit once prices have risen to your desired levels.

So what then?

As we said, we’re here to take care of you! Here are a few ways we can do so.

 

• GSC Live! (Download here for Free!)

A mobile friendly application that is a powerful tool for investors. You now have the capability to view and transact based on live streaming market prices. Yes, that is right, you are able to buy / sell anytime and anywhere that you find convenient. And the best part? It’s 100% physically deliverable. Yes, let me repeat, 100% physically deliverable. You can exchange the pool allocated gold in your GSC Live! Account for physical bars & coins at our retail shop.

 

• Retail Services

Surprise! Its not just a place for you to collect your online purchases or see what gold bling lights up your eyes. Here, we are specially trained to pinpoint weaknesses in your precious metals portfolio and identify ways to bolster up your holdings. To maximize your purchases, speak to us to see what is the best way to go about it. There’s various ways, for example from reviewing your portfolio balance, aligning your risk profile, etc.

 

• Collateral Loan

Trust us, we mean serious business when we say you should consider utilizing Collateral Loan services. Its not just about braving occasional social stigma and “pawning” your jewellery for urgent funds, it’s all about obtaining credit lines while retaining ownership of your assets for the capital gains via price appreciations. Serious investors know what we’re talking about. If you’re not sure yet am interested to find out more, just reach out to us and we’ll help you become one.

 

 

2. Asset on your Balance Sheet

 

You belong to a very select group of customers where it’s not always just about making money. Sometimes, you are planning for your future, or maybe even your children’s future. And you want to give them the best in their lives. Maybe even a good head start in their financial journey. Some Singaporeans buy flats under their children’s name, you buy precious metals for them. After all, its internationally recognized and much more liquid.

 

We also have ways to value add to you!

 

• Storage

When it comes to your physical assets, we believe security concerns shouldn’t even be a pain factor. And yet, precious metals investors face issues such as insurance headaches, safety deposit boxes gross weights and size constraints. Just thinking about it gives me a headache already, how about you? That’s why our storage program is an all-in-one solution and provides the full suite of services you will need. From the day of your first purchase, till the day your grandson/granddaughter wishes to sell it off, we maintain your account and offer you a direct line to us. Especially if you are located overseas.

 

• Perth Mint Certificate Program (PMCP)

Investing your funds in the world’s only Government Guaranteed program for Gold is a no brainer for a serious investor. Perth Mint holds itself to the highest of standards when it comes to vault security and transparency. When you choose PMCP to be part of your portfolio, you needn’t worry about not leaving behind the best legacy. It’s not just a paper certificate, it’s a mobile and internationally recognized asset you can put in your pocket wherever you travel to.

 

• GoldSilver Central Savings Accumulation Program (GSAP)

When I purchase an investment, I face this issue. How do I know the price I purchase at is a “low price”. The truth is nobody knows. And that’s why it’s so important for you to leverage upon financial wisdom. Dollar Cost Averaging Strategy is the crux here, and when you onboard the GSAP, accumulating daily is stress-free. Think of it as automated disciplined savings for your purse strings. More discipline in your life isn’t such a bad thing.

 

Earlier, I mentioned that investors fall into the 2 above categories. Truth be told, you feel that both categories do apply to you right? And that’s so true! It all depends on your life stage and goals. So I implore you, get in touch with us to find out how we can maximize each category in your portfolio.

 

Jason

Technical analysts use support and resistance levels to identify price points on a chart where

1. Buying force concentrates and exceeds selling force – Support level
2. Selling force concentrates and exceeds buying force- Resistance level

 

The support and resistance levels can be identified on charts using trendlines and moving averages based on the historic price movements.
In terms of technical analysis, the simple resistance level can be obtained by drawing a line along the highest highs for the time period being considered. In contrast, the support level can be obtained by drawing a line along the lowest low.

 

There are 2 scenarios that may happen when the price level,

1. Bounce; or
2. Break through

 

During the “Bounce”, investors usually:

• Buy when the price falls towards support.
• Sell when the price rises towards resistance.

 

During the “Break Through”, investor usually:

• Buy when the price breaks up through resistance.
• Sell when the price breaks down through support.

Please feel free to speak to us at bullioninsights@goldsilvercentral.com.sg or call us at +6562229703 to speak to our in-house analysts and they’ll be happy to share more with you!

Suzane

Despite being the ultimate “safe haven” asset, Gold prices has been very volatile since the coronavirus outbreak. The intensifying fears over the coronavirus along with the U.S presidential Election and the highly anticipated relief bill have been the main drivers for the exacerbation of Gold’s volatility. The phenomenon of a time discrepancy between the gold price and the point in time clients receive information of the price hike has been common this year. Owing to this, clients are selling their holdings after gold prices have retreated, missing out on the best possible returns.

GoldSilver Central offers efficacious solutions for your sale of gold, ensuring you are informed of your desired price level with minimal effort. Price hikes of Gold prices are opportunities for you to benefit from and we are here to lend a helping hand.

• Let GoldSilver Central Monitor the Prices for You

Having to take time off your busy schedule to monitor the price movement of gold prices can be a hassle, to say the least. Root out this inconvenience by making use of our price alert function and let us monitor the prices for you. Simply fill up a form, indicate the price you are looking to sell at, and we will do the rest. Once the indicated price is reached, you will be alerted with an email and you can head right over to liquidate your assets.

• Prices at your Fingertips, Sell your Gold Holdings anytime and anywhere at your Convenience

As technology advances in this age, the approach to dealing with precious metals has changed too. By converting your gold jewellery or bullion into Pool allocated holdings on GSC Live!, you are able to breathe new life into your Gold. By doing so, it provides you with the ability to keep track of market movements and enable you to sell instantaneously at the time and place of your convenience.

Sin Pong

We believe there are many people out there who are interested in precious metals and wish to start investing with something small in the initial phase. However, the question is “How?”?

The GSC Savings and Accumulation Program (GSAP) allows you to save using dollar cost averaging where you can start investing with a small amount at initial stage. This also allows you the flexibility to increase your accumulation on months where you have more liquidity on hand.

Let us share more on how GSAP works. GSAP helps to automatically accumulate your choice/s of precious metals daily. The automatic purchase will only be executed during GSC’s business days.

For example, if there are 20 business days in a month, the $100 will be divided in 20 days.
Based on 10am reference price, which is captured via algorithms automatically and displayed on our website daily after 10am, we will automatically purchase $5 worth of your choice/s of precious metals every business day. This helps the client to accumulate more when prices are low and less when prices are high. This is called Dollar Cost Averaging. This way, clients will not have to worry about price fluctuations or when would be the best time to purchase.

Upon the maturity of the savings accumulation plan, clients can also choose to take physical delivery of their accumulated precious metals. Clients can choose to take delivery of physical bullion, coins or even jewellery from our store. Of course, you can also opt to sell off your accumulated holdings if you do not wish to swap them for physical precious metals.

 

“What if I wish to start saving on precious metals during middle of the month/ any day of the month? Can I? How does it work?”

Sure, you can! For example, if you wish to start accumulation in the middle of the month with only 10 business days remaining, the $100 will be divided into 10 days. Which means we will automatically purchase $10 worth of your choice of precious metals on the remaining business days.

There is only one cost called the storage cost. It is 2.5% per annum and it will be calculated daily as your holdings increase day by day. The estimated storage cost for $100 accumulation is less than 1cent per day during the initial accumulation. As your holdings increases over time, the storage amount will then increase.

GSAP is hassle free and suitable for anyone who wants to accumulate their Precious Metals in physical Gold, Silver and Platinum.

Please feel free to contact us for more details or visit us at www.goldsilvercentral.com.sg.

 

Cheryl

There are instances when GSC tested a client’s jewellery, the purity was lower than what was indicated on hallmark it bears. For example, the hallmark on the jewellery indicates 916, this means the piece of jewellery is supposed to contain at least 91.6% of pure gold. But the authentication result might come out as 88 ~ 90% only. This often happens to jewellery that is bought long time ago or if it was bought overseas.

It might be due to the poor quality control compared to how it is done presently or it is not as stringent as how it is done in Singapore. To protect ourselves as a consumer, we suggest purchasing from reputable and responsible jewellers/goldsmiths at the same time keeping the receipt of purchase.

Purchasing from jewellers /goldsmiths that have already sent their jewellery to Singapore Assay Office for assaying and hallmarking would be a good choice as you are assured of quality. Singapore Assay Office (SAO) is an independent test laboratory that tests precious metals such as Gold, Silver, Platinum and Palladium purity since 1975. The jewellery tested will bear SAO mark which is a lion’s head. You may read here for more information.

Maya

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