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 Many used to think that buying precious metals would be very traditional and outdated.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:
- Accumulate min. $100 per month.
- Minimum period to commit: 1 cycle (3 months)
- Accumulate daily on business days based on GSC 10am reference price automatically.
- You may refer to the 10am reference price through our website.
- Helps the client buy more when prices are low and less when prices are high.
- Dollar Cost Averaging method.
- Upon the maturity of the savings plan, clients can choose to take physical delivery of your accumulated holdings or sell to encash it.
- 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)
- 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
2020 was the banner year for Gold, hitting US$2074.96/ounce in August 2020. Silver has hit its high since April 2011 at US$29.795/ounce and Platinum has hit US$1075.699/ounce since August 2016.
Based on the GSC 10 a.m. Reference Price, Gold has increased 24.93%, Platinum has increased 47.44% and Silver has increased 47.54% in 2020.
The lowest price for all metals occured in March for the year 2020. This is also the period when the pandemic started to proliferate globally.
The pandemic has accelerated the rally for investors who are looking to protect their wealth, and this led them to stockpile precious metals, the known safe-haven. In addition to the increase in demand, the pandemic has affected the supply chain for the precious metals due to lockdowns. All these led to an increase in the premium of physical stocks.
With the huge government debt, negative real returns on bonds, low or negative interest rates and threats of inflation and market turbulence, what would your precious metals forecast be for 2021?
Will the silver continue to outperform in 2021? Will the basis of positive blast from the green transformation driving increased industrial demand, and the expected economic recovery?
Below is the chart that shows the Gold, Silver and Platinum spot price (SGD & USD) movement line for the year 2020. Based on the charts below, it shows that Gold and Silver are in tandem and have a closer correlation as compared to Platinum hence a diversification across different precious metals might be a good idea for a more robust portfolios.
Price based on GSC 10am Reference Price
Suzane
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 [email protected].
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:
- Profit & Loss
- Asset on your Balance Sheet
Let’s analyze this further.
- 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.
- 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
- Buying force concentrates and exceeds selling force – Support level
- 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,
- Bounce; or
- 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 [email protected] 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
“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
This National Day will be different from what we have been used to annually due to the global pandemic. However, this is a good time when we as Singaporeans can all unite and stand together!#SGUnited To lighten up the spirits and join in the celebrations, we have specially curated a promotion to celebrate Singapore’s 55th Birthday! Let’s have a look at one of the featured products; the iconic 1965-1975 Singapore Mint 10th Anniversary of Independence Gold Coins Set.
To commemorate the 10th Anniversary of the Republic of Singapore on 9th August 1975, the Board of Commissioners of Currency Singapore made a special issue of 3 legal tender gold coins, released on 3rd February 1975.
The Gold coins are set in 900 fineness and are in denominations of $100, $250 and $500 respectively. The coin obverse bears the Republic Coat of Arms with the figures “1965-1975” and encircled by the words “10th Anniversary- Republic of Singapore”. The coins were struck by the Singapore Mint, a division of Chartered Industries of Singapore Pte Ltd.
1965-1975 Singapore Mint 10th Anniversary of Independence Gold Coin 34.7g
Modern Singapore which was first named “Singapura” (Lion City), symbolized by the stylised version of a lion’s head on the reverse of the $500 Singapore legal tender Gold Coin. Each coin contains not less than 1 troy oz of fine gold.
Diameter: 34.5mm Thickness: 2.6mm Weight: 34.7g
1965-1975 Singapore Mint 10th Anniversary of Independence Gold Coin 17.5g
Multi-racialism of the Republic is symbolized by the four clasped hands on the reverse of the $250 Gold Coin. Each coin contains not less than 1/2 troy oz of fine gold.
Diameter: 28.4mm Thickness: 2.2mm Weight: 17.5g
1965-1975 Singapore Mint 10th Anniversary of Independence Gold Coin 6g
Singapore’s successful housing programme is symbolized on the reverse of the $100 Gold Coin by 2 blocks of high rise flats. Each coin contains not less than 0.175 troy oz of fine gold.
Diameter: 19.4mm Thickness: 1.6mm Weight: 6g
This coin set is perfect for history enthusiasts or Singaporeans who want to relive part of Singapore growing years. Due to its limited mintage, it is very unlikely that we would be able to replenish the stock once they are sold out. These rare coins will not only add beauty and value to any coin collection but also own a part of Singapore’s history!
*Customers are allowed to purchase a single item instead of set.
Evonne
In this article, we will delve into some of the features that distinguish Proof coins from the regular bullion coins. Whether you are looking to collecting or new to proof coins, this will help you make a delightful purchase decision.
Proof coins are recognized for their stunning, sharp, detailed presentation. This is achieved by using hand-finished die to strike Proof coins and the dies are constantly re-polished to ensure the intricate details of the design. Due to the high amount of manual work such as inspection and cleaning, only 50 Proof coins can be struck in an hour. Thanks to the immaculate production process, proof coins are the finest quality commemorative coins.
The main reason to own Proof coins are:
Rarity: Unlike the bullion coins, Proof coins are limited in mintage due to the additional manual work and time-consuming production process as compared to minting a bullion coin.
Price: Generally, Proof coins have a higher premium as they carry a more defined presentation, quality and exceptional finish. For collectors who value beauty, Proof coins are well worth the premium. Moreover, due to its limited mintage, some of these proof coins might appreciate greatly in value as collectors would like to get their hands on one. Especially if they missed out on it previously, they would be willing to pay much more for it to complete their collection.
Appearance: Instead of being struck once, Proof coins are struck twice in order to give the coins a shinier, sculpted foreground and intricate appearance. The mirror-like surfaces and detailed sharp features distinguishes them from the regular coins.
Packaging: Proof coins are encased in a protective capsule and packaged beautifully in a gift box and this makes it a thoughtful gift especially for birthdays or anniversaries.
Proof coins are aesthetically crafted works of art. If you are interested in knowing more or purchasing some Proof coins, stay tuned for our National Day Promotion next week! We will be featuring the dazzling collectibles from the Perth Mint.
Evonne
Today, we briefly explore a different topic – the merits of Fractional Ownership in Precious Metals
Do you legally own half a home with your spouse? Do you have friends “co-owning” a private yacht? That is fractional ownership, where the ownership of an asset is shared by several parties. This form of partial ownership allows them to share the benefit that comes with the asset. Typically, this occurs most often when a sole owner does not require usage of the asset 24/7. Simply think of “your yacht” in Singapore, it’s highly unlikely you will wish to sail 24/7. Of course, there are other reasons to pursue fractional ownership, such as inability / reluctance to own the full asset.
The application of Fractional Ownership to Physical Precious Metals (PM) is not new. A common form would be Pool Allocated Gold where the physical gold is set aside in a segregated pool and clients have the option to purchase smaller denominations. A group of PM investors coming together to co-own a pool of physical Gold. Sounds like Fractional Ownership doesn’t it? For eg, clients can purchase 0.1oz Pool Allocated Gold on our GSC Live! Platform and they will own 0.1oz worth of physical Gold (either bars or coins) within our GSC Vault Network.
So, if the concept of Fractional Ownership in PM isn’t new, what is the big deal then? Well, the key is seeing how we can apply the concept of Fractional Ownership to our PM strategies. How does Fractional Ownership help a PM investor achieve his objectives? It is simple. By converting a specific piece of physical gold to a pool allocated format, we have taken that first step (and arguably a tough one) of converting your inflexible gold to a form that offers more flexibility. And this flexibility brings about more options. Let us explain what we mean.
Imagine being able to sell 0.1oz of gold at a time instead of the whole 1oz gold bar; and being able to set aside funds on a monthly basis to accumulate your gold bit by bit, without incurring the huge markup premiums of small denominated physical gold. (Of course, one can argue that you can achieve the same results and receive gold exposure by going into ETFs but that depends on its structure. You may not be really holding Gold after all. This is an exciting topic for another time!) Fractionalizing your Gold allows you to “enter/exit” the market at multiple price points and that itself opens a lot of options.
Clients multiply their single traditional option of “buy low sell high” to many more options on what to do with their PM assets. For instance, instead of only being able to sell 100% of my Gold bar at the current price, I could instead opt to sell 50% of my Pool Allocated Gold and leave the remaining 50% for continued price exposure. If I am on a monthly budget (setting aside $200 every month), I could also be applying a strategy to buy $200 worth of Gold monthly and accumulate up to 100g worth before taking delivery of 1 x 100g gold bar. This allows a PM investor to stack up their purchases at minimal costs. Previously, an alternative would be to buy a physical 2g gold bar monthly and incur huge premiums. (If you are interested, check out our GSC Savings Accumulation Programme where our clients perform minimal-premiums accumulations automatically on a DAILY basis!)
One thing to note though, just by fractionalizing your gold into tiny bits does nothing for you. It’s about how you use that ability of fractionally dividing up your assets that makes it powerful.
So that is it, a short discussion on Fractional Ownership in Gold. We have only touched the tip of the iceberg here. Stay tuned for more updates and discussions.
PS:
To keep this article short, we did not discuss the various differences between Pool Allocated and Allocated Gold. There are many online articles available but if you are interested in a deeper conversation, please feel free to approach us via email ([email protected]) or phone (+65 6222 9703).
What is Mintage of a Coin and how does it affect the value of the coin?
When we talk about mintage of a coin, we are referring to the number of copies issued of a coin during a period. Usually bullion coins for e.g. the Canadian Maple Leaf, American Eagle, Austrian Philharmonic and etc (excluding those special edition, commemorative edition and etc from the same mint) have unlimited mintage throughout the year. Does the mintage of a coin affect a buyer for bullion then?
Well to be honest it might not affect you if you are investing in investment grade bullion coins instead of numismatic coins. However, we categorized some coins as “semi-numismatic” and generally the mintage does affect the value of the coin. These are coins that have both characteristics of a bullion and numismatic coin. A quick example, in 2019 the total mintage of American Eagle silver coin 1oz was 15,032,000 pcs whereas the Australian Lunar silver coin 1oz had a maximum mintage of only 300,000 pcs. Although Australian Lunar silver coin is a bullion, the mintage is 50 times less than American Eagle silver coin and it has a different design every year based on the Chinese Zodiac. The Lunar series from Australia is well sought after by investors and usually these investors would want to complete their collection if they missed out or couldn’t purchase a particular year. Hence are willing to pay a higher premium in order to collect them. This creates a numismatic value on top of its metal value.
Another interesting example, in 2018, the Austrian Philharmonic gold coin 1oz had a mintage of 318,334 pcs. In contrast, the Mexican Libertad gold coin 1oz mintage was only at 2050 pcs. That is approximately 155 times less than the Austrian Philharmonic, and although the Libertad design every year is the same, this low mintage results in a higher demand. Thus premiums for Libertad Gold coins are generally way higher as well and years with lower mintages will command a much higher premium.
Does this mean that those who bought these “semi-numismatic” coins can sell it at a premium in future considering it has added numismatic value? This really depends on who you are looking to sell it to. If you are selling it to coin collectors or coin dealers who are willing to pay high premiums for a relatively rare coin, then the answer is yes, you can get more than the metal value. But if you are selling to a bullion dealer, most of the time they only recognize the metal value of the coin. They might bid at a higher price, but it might still be far off from your expected price.
When it comes to investment, we always encourage clients to do more research and plan their exit strategy. If you are planning to get a bullion coin as an investment and intend to sell it off when precious metal prices are higher to earn some profit, a bullion coin that doesn’t have a mintage cap might be a better choice as it tends to have lower premiums. If you prefer something different and you have contacts to someone who is interested with numismatic or semi-numismatic coin, then it might be a good idea to consider semi-numismatic or numismatic coins.
Our retail store will be open from 19th June onwards, but will be by appointments only. This would allow us to better serve you and prevent a queue outside our store during peak hours. Please kindly be on time if you do have an appointment with us as we might have clients who have an appointment after you, thus can only serve you at our next available slot.
Hand sanitizers will be placed around our store for clients, please feel free to use them. We do have disposable masks too and if you require one, please feel free to approach any of our staff and they will be more than happy to pass one to you. All high contact surfaces will be cleaned and disinfected daily. Counters that are open to serve clients are arranged to be at least 1 meters apart.
Please do not be alarmed as all our staff that will be serving you will don a face mask and a face shield. This is to protect our clients and staff to ensure a safe environment for everyone.
Thank you and stay safe everyone!
When clients purchase bullion from GSC, they can be assured that they are buying genuine bullion as GSC acquires their bullion directly from the mints / refineries and reputable international dealers. We will then do random checks on each shipment with our various devices to confirm the authenticity.
In the very unlikely event that the bullion purchased from us is counterfeit or significantly lower purity / weight as stated on the product, we will be more than happy to provide a one to one exchange or full refund. Allow us to share with you the 3 devices we use to authenticate bullion and gold jewellery.
Densimeter
A densimeter evaluates the purity of precious metals (Gold, Silver and Platinum) by measuring the specific gravity of the sample and distinguish the precious metal from the other base material. Simply by measuring the weight in air and the weight in water, the programmed device will analyse and display the content of precious metals in terms of karats, purity and density. As it tests the average purity of the sample, it provides more accurate result for solid items for instance gold coins and bars.
Magnetic Bullion Tester
The Magnetic Bullion Tester is a magnetic scale and measures the attraction or repulsion of the bullion to magnet in the device. A metal’s magnetism cannot be manipulated, and every metal reacts in its own way to a magnetic field. Precious metals like gold and silver are not magnetic, it is weakly repulsed by a magnetic field. Bullion can remain in their packaging during testing and this is non-destructive. Multiple objects can be tested simultaneously with this tester, for example coins in a tube and if one is counterfeit, it will be picked up immediately by the magnetic bullion tester.
XRF Analyzer
XRF stands for X-ray fluorescence. XRF Analyzer is a powerful, non-destructive device for measuring a wide range of elemental composition from magnesium (Mg) to uranium (U), from parts per million to 100%. It emits X-rays that hit the sample, causes the elements in the sample to fluoresce and travel back to the analyzer’s X-ray detector. The analyzer will then count them and make mathematical calculations to generate a result. Results are available immediately
The above methods are different from some traditional methods you might have heard of, for example fire assay or using a stone and acid which are somewhat destructive. The devices that GSC utilises are non-destructive, accurate and instant. You need not worry about stains or scratches left on your precious metals after testing and are definitely more accurate and transparent.
Dear valued Clients,
Hope you all have been well and have stayed safe and stayed home during the Circuit Breaker in Singapore and similar measures all over the world. GoldSilver Central will be allowed to resume operations on June 2nd albeit not all our services as it seems. According to the guidelines provided by the Government, our retail store will remain closed to walk ins and browsing. We are seeking clarifications with the authorities if self pick up of orders and the selling back of bullion/scrap jewellery by appointments are allowed. We will update again when we receive a reply.
Both of our SSIC (Singapore Standard Industrial Classification) codes allow us to open but there are other guidelines that we might need to adhere to hence we needed clarifications. Please refer below for the guidelines provided by Enterprise Singapore and Ministry of Trade and Industry.
https://www.enterprisesg.gov.sg/covid-19/safe-distance#RE
https://covid.gobusiness.gov.sg/permittedlist/
Thank you for your kind patience and support during this period. Stay home and stay safe! We will keep you updated!
Best regards,
Brian Lan
Managing Director
Previously we published an article on being able to cash in on high precious metals prices. We thought it would be appropriate to also talk about investing wisely in times of high precious metals premiums.
As the current situation stands, there is no physical shortage of precious metals worldwide. However, there is a squeeze on immediate settlement of physical precious metals due to the supply chain being affected by Covid-19 measures being implemented globally. (If you are wondering what do we mean, basically no flights = no movement of goods, including precious metals) A quick side note on fundamental economics here:
Price = Demand & Supply. If demand exceeds supply, prices will rise. Which is the current case for premiums of precious metals. The decreasing ability to take immediate physical settlement of your precious metals coupled with increasing rumors of shortages of the physical metal worldwide has rocketed premiums upwards, especially for Silver. You can read more here.
Today, we will share in greater details on how you can utilize GoldSilver Central to invest wisely into Precious Metals.
Option A is for you if you are an investor who
- Is new to financial investment in general
- May prefer a low entry cost to Precious Metals (As low as $5 a day)
- Wants an automatic arrangement for purchasing your bullion (Less Time Hassle)
- Wishes to avoid higher-premium low denominated items
- Wants a straightforward method with minimal effort.
Here’s how it works:
- You may consider going for our GSC Savings Accumulation Programme.
- Your purchases are done automatically on a daily basis (Dollar Cost Averaging) and will be stored with us under a pooled allocated arrangement (simply means that your precious metals holdings are physically backed by our inventory)
- Your holdings account is updated on a daily basis and a monthly statement is sent out
- And it’s done! When your holdings have accumulated to your target amount, choose the physical item and top up the physical premiums to specifically allocate a bar/coin for you.
- You may collect your physical bullion at your convenience (Currently it would have to be after the Circuit Breaker Period)
- If you wish to, you may opt for our Storage Programme which keeps your physical bullion safe, while providing you the convenience of being able to sell whenever you wish to
Option B is for you if you are an investor who
- Wants full control of when you wish to purchase your holdings
- Wants to purchase your holdings bit by bit (For example, you wish to purchase a 100ozSilver Bar, but you don’t have enough funds to purchase it at one go. You may break it up into 5oz sizes to accumulate slowly)
- Want to set your own Buy Limits (Automated Feature)
- Buy / Sell with narrow spreads
- May consider the option of taking physical delivery, however if you can sell off for quick profits you wouldn’t mind either
Here’s how it works:
- Unlock the Full GSC Live! Account Features.
- Login to your GSC Live! account and set up your Account preferences
- You may set Buy Limits to automatically trigger your desired buying prices or you may choose to purchase whenever your desired prices are reached
Option C is for you if you are an investor who
- Prefers security above all else in your precious metals portfolio
- Appreciates overseas diversification in your portfolio
- Demands integrity and professionalism in your counterparties
- Enjoys exclusivity
Here’s how it works:
- Sign up for a Perth Mint Certificate Programme.
- It is the only Government Guaranteed Accumulation Program in the world.
- The cost above Perth Mint Precious Metal prices is only 2.25% for Gold, Silver & Platinum
- A specialized account manager will be assigned to you throughout the entire process
In Summary, all 3 options above allow you to lock in the precious metals prices for the metal you wish to purchase and only top up the physical premiums at a later stage. When premiums are back to normal, you may then choose to take delivery of the bullion bars / coins.
So that’s it, a quick look into a few possible options we have here at GoldSilver Central to value add to our clients’ precious metals investment.
Have more questions on the arrangements?
Drop us an email at [email protected] or a call at +65 6222 9703 and we’ll be happy to share more information with you!
The Perth Mint Certificate Program (PMCP) is the only Government Guaranteed Certificate Program in the world and is backed by physical metals in Perth. PMCP clients have legal title to their precious metals stored in Unallocated, Allocated and Pool Allocated accounts.
The PMCP facilities are especially suitable for individuals seeking for confidentiality, flexibility and a safe haven for their precious metal assets in an uncertain world. It is also a ideal product for legacy planning.
Below are the SAFE reasons to own PMCP:
Secure
- The world’s only Government Guaranteed precious metals accumulation program.
- The PMCP is permitted in a variety of holdings including Personal, Joint, Corporate and Trust.
Affordable
- Low minimum purchase requirement, minimum of $10,000 (USD).
- FREE storage for unallocated Gold, Silver and Platinum.
- Only 2.25% above Perth Mint’s spot price
Flexible
- Worldwide Delivery and Redemption.
Exclusive
- Overseas relationship is with a Government owned entity, not a foreign bank.
- The Perth Mint’s records utilize code number to ensure client confidentiality and security.
To find out more, you may checkout our PMCP page.
If you are looking to sell away your Gold (Bullion & Jewellery), GoldSilver Central is happy to announce that we are providing free delivery to pick up your items valued at SGD$7500 and above!
To give our valued clients a better understanding of the process flow, here are the procedures:
1. Kindly provide us with your name, contact number and submit a clear photo of your items through Whatsapp or Email. Our dedicated staff will get in contact with you shortly.
2. Please note that we do not buy back any non-gold items such as stones that are embedded in the jewellery, the weight of these stones’ will be estimated and deducted off from the final weight of your items. All of the mentioned stones will be disposed off. If you have the intention to take the stones back, please note that we have no guarantee of the condition and will not be held accountable for any damage during the dismantling process. Clients will have to do a self-collection of the stones. Our team will inform the respective clients when it is ready for collection and clients can then place an appointment with us before collecting it from our office.
3. Complete the following form: Onboarding Form
4. You will receive an email advising you of the day your items will be picked up, tracking number/document for your shipment along with a shipping label. Kindly pack your items in a box/envelope, ensure that there is sufficient protection for your items by filling the box/envelope with fillers (eg. Newspaper, styrofoam etc). Seal the box , print and paste the shipping label on it. Pickups for you items will be before SGT 1200 on the respective date.
5. We will update you once we received your items and begin the process of weighing and authentication.
- Weighing of your gold bars and/or coins
- Authenticating the bullion’s purity through a Magnetic Value Test
- Once this is completed, your dedicated salesperson will quote you the buyback price based on the prices at that point in time (an image of the buyback price stamped with the time and date will be provided)
- Weighing the gross weight of your jewellery (along with non-gold items eg. Stones or parts)
- Authenticating the jewellery’s purity through XRF ( X-Ray Fluorescence Gun), images of the check will be sent to you IF the purity of respective jewellery pieces is lower than your expectations.
- We will record down the final purity breakdown and respective weights.
- Once this is completed, your dedicated salesperson will quote you the buyback price based on the prices at that point in time.
6. Once the prices are confirmed, we will raise a Purchase Order for your items. This Purchase Order will be emailed to you and you will have to sign on this digitally.
7. An immediate bank transfer will be done once we have received your signed copy of Purchase Order.
*Note: After all the processes mentioned are being done, client will have to bear the cost of all logistic costs for BOTH the pick up and return if the client decides not to proceed with the sale.
GoldSilver Central
Today, we explore a sensitive topic – Wire Transfers.
You might ask, why is this sensitive? It’s a simple matter of transferring funds from my personal account to GoldSilver Central’s account, that’s it right? Turns out, not so. And we’ll dive deeper into this realm today to see what are the various costs associated with Wire Transfers and how do they affect you as a client.
Before we go further, lets clarify the terms first. By Wire Transfer, we are referring to an electronic transfer of money. The typical route utilizes a network such as Society for Worldwide Interbank Financial Telecommunications System (SWIFT) to “communicate” from one bank to another, and once the recipient bank confirms the “message”, funds are transferred over and the respective balances are updated in both sender and recipient’s accounts. The entire process takes several days on average from start till end.
But that’s not true! Bank transfers in Singapore are immediate.
That’s because Singapore uses FAST.
FAST stands for Fast and Secure Transfers (I know, the creativeness behind the naming blows me away as well). It is a electronic transfer service enables customers in participating banks to transfer Singapore Dollars from one back to another in Singapore almost instantly. It was introduced on the 17th March 2014 and is currently offered by 23 banks (Information accurate as of 13th December 2019). Personal account transfers currently have no fees attached and corporate accounts only pay a minimal transfer fee (Yes, there are costs for bank transfers also!)
So what are the costs involved?
Typically, we have to break it down into the Sender’s bank fees and the Recipient’s bank fees. We aren’t banking experts here, however based on our experiences, the Sender bank’s fees are typically administrative fees charged by the banks to process your transfer in a timely manner. This makes sense as verification and manual authentication still have to be performed to ensure the right “message” is being sent and received correctly. Thus, banks typically have agreed upon rates which they base on to bill their clients for the transfers, which is the same for international banks also. This is the same regardless of whether you are a “sender” bank or a “recipient” bank, although the charges probably differ slightly. Bear in mind also that depending on the route being used, there may be intermediate banks involved and these incur charges as well. (Think domestic airlines and international airlines. Domestic flights connect you to international hubs which in turn connect you to international flights)
Hence, if a sender instructs their bank to absorb all transfer fees, they should clarify whether its for both sender and recipient bank fees, or just the sender fees. The bank would then act upon the sender’s instructions accordingly. Of course there have been occasions where the unwary / forgetful have instructed wrongly and end up sending too little / too much funds, resulting in more hassle for the sender and recipient.
To be honest, we at GoldSilver Central Pte Ltd have likewise experienced the above on several occasions. Trust us, when it comes to international business dealings, the difference of US$0.01 cents could result in the delay of an entire shipment. (Not Fully paid is not fully paid, period.) And to resend the funds of US$0.01 would likely incur the same charges as before, since the process is the same. (Some banks have enacted policies like minimum and maximum fee charges to lessen the load on client transfers) Hence, it is always important to check with the recipient what kind of policies do they have when it comes to transfer fees.
Why can’t all recipients absorb the transfer fees then? (After all, it’s probably a small amount right?
Wrong again. Bank transfer fees can go up to hundreds of dollars for large amounts of money but do not decrease proportionally for lesser amounts of money. After all, the same administrative work is required for both US$1 and US$100,000 transfers. Hence, international bullion companies with large transaction amount but low profit margins state upfront that recipient banking fees will have to be borne by sending clients. This is akin to sending parcels out for delivery. You don’t usually expect the recipient clients to pay for delivery costs, unless under special circumstances.
Here at GoldSilver Central Pte Ltd, we emphasize on our transparent processes and take it a step further by providing our clients with the banking transaction receipt page to show the fees breakdown should they request for it. We do this to show that we do not add any further “mark-ups” for bank transfers and profit from such transfers. If you are a client who does frequent international transfers, you may wish to consider requesting for such statements as well. Already, we know of transfer platforms which have the same principles regarding transparency and show the exact breakdown of the fees involved.
So that’s it, a quick look on local and international bank transfers. Keep in tune as we continue our updates. Click here for our various Payment Methods
One common question we have from you is if there is a solution to catch your desired price for selling your precious metals holdings to us.
Today, we will share how you can use our services to never miss out on cashing out on high prices for your bullion under a pooled allocated storage arrangement.
Solution A is for you if you are an investor who
- Wants an automatic arrangement for selling your bullion
- Knows the price level you want to sell your bullion at (Eg: I want to sell my 1kg Gold Bar at SGD 65500)
- Wants a straightforward method with minimal effort.
Here’s how it works:
- Bring your bullion you wish to sell to us during our operating hours where we will authenticate it.
- Your bullion will be stored with us under a pooled allocated arrangement (simply means that your bullion will be deposit into our holdings)
- Let us know what your specific selling price for your metals is. (For example: I want to sell my 1kg Gold Bar when it reaches SGD 65500).
- And it’s done! When spot BID prices have reached your desired selling price, it will automatically be sold.
- You will receive the proceeds via a Bank Transfer*
*we do need to onboard you as a client which means we need your NRIC and the header of your Bank Statement (reflecting the Name and Account Number). Please omit other sensitive information
- Wants full control of when you want to sell your holding
- Wants to sell your holdings bit by bit (For example, if you have a 100oz Silver Bar, you don’t have to sell 100oz at one go, but you can sell in 5oz sizes
- Want to set your own Sell Limits (Automated Feature)
Here’s how it works:
- Bring your bullion you wish to sell to us during our operating hours where we will authenticate it.
- Your bullion will be stored with us under a pooled allocated arrangement (simply means that your bullion will be deposit into our holdings)
- Unlock the Full GSC Live! Account Features with us by clicking here. This can be done before or during your visit.
- We will deposit the total weight of your metals into your GSC Live! Account.
- Login to your account under the “MetaTrader4” app in “GoldSilverCentral-Live” server.
- You can set Sell Limits to automatically trigger your desired selling prices or you can start selling your holdings whenever your desired prices are reached
Have more questions on the arrangements?
Drop us an email or a call and we’ll be happy to share more information with you!
Collection will only be available for pick up after the 1st June 2020 or the end of the Circuit Breaker period, whichever comes later. For clients who have arranged for collection after the 4th May 2020, we regret to inform you that this is no longer possible. Delivery options continue to be explored and will also only be able to be arranged after the Circuit Breaker period.
Current Collateral Loans will still continue to be serviced during this period.
We have also revised our policy earlier in April and would like to gently touch on them.
During the Circuit Breaker, we will not be able to take delivery of your bullion so clients can decide based on the 2 options how they would like to sell their Gold/Silver/Platinum.
Clients continue to still be able to place orders via our online store. Do note that full payment is required within 30 minutes of the order as on-site physical inventory is limited. For orders above our online store limit (S$8,200), a minimum of 50% advance payment will be required and clients may reach out to our Sales Team to perform the buy transactions.
As we previously emphasized, there is no shortage of Gold or Silver in the world. The current squeeze in physical precious metals is due to the supply chain being affected by Covid-19 measures implemented globally. Hence premiums for physical precious metals have increased substantially. Clients can consider products such as Perth Mint Certificate Program, GSC savings accumulation Program and GSC Live! as these products will allow you to lock in current metal prices at minimum mark ups and narrower spreads.
Brian Lan
Managing Director
Dollar Cost Averaging is a popular investing method that has stood the test of time. It only requires a small sum to start and allows you to buy into an asset regularly, with a fair price.
So what’s so good about it?
- No more second guessing or impulsive action when making decisions
- Gives you exposure to the markets without frequent monitoring and trying to time the market
- Best used when a market is trending upwards
- Anyone can use this method to invest
What is the downside about it?
- When markets are trending downwards, you don’t get the most out of your investment with dollar cost averaging
In conclusion, in a bullish market or in other words, a market that is trending upwards, you will benefit from the long-term upside of staying invested. A more rewarding way to convert your salary into savings and accumulating into precious metals rather than keeping the money in cash that provides little or no returns. Gold has appreciated about 18% in 2019 and have set new highs this year. Gold still continues to look bullish in 2020.
GSC Saving and Accumulating Program (GSAP) is ideal for anyone who wants to diversify their savings and asset portfolio into Precious Metals without worrying about price fluctuations utilising Dollar Cost Averaging System. Best of all, GSAP is 100% physically deliverable!
As we near the end of Q1 2020, the Covid-19 virus outbreak continues to dominate headlines, keeping investors and the public on tenterhooks.
Financial markets have reacted with rising volatility as investment capital continues to seek out safe haven assets for refuge while waiting for clarity on full impact from the virus to play out. Governments around the world are still grappling with this crisis and are ready to introduce additional financial measures to stave off recession fears and buffer their economies. The emergency 50 basis point rate cut on March 3, 2020 by the US Federal Reserve was dramatic. It was a magnitude not seen since the Lehman Brothers collapse in 2008, and it revealed the gravity of the situation. However, pundits were quick to note that this was a health crisis and not a financial one. Rate cuts may have limited effects as cities remain in lockdown and factories remain shut. Critics have remarked that finding a vaccination cure might be more useful than a rate cut in these times.
In precious metals, gold has been the clear winner since the start of 2020. As of March 10, 2020 year-to-date, gold is up 8.7%, silver down 5.6% and platinum down 9.49%. The rise in prices has invariably caught the attention of physical gold investors in Singapore, with many donning face masks and making their way into dealerships to sell off their gold holdings at high prices. Volatile gold prices have also caught the attention of online investors looking for opportunities in gold trading to capture directional moves via trading platforms for physical deliverable gold.
In Singapore, lessons learned from SARS were put to the test as government agencies rolled out health advisories and business continuity guides to industry bodies and players to guide them on best practices. Having personal social responsibility, especially in times like these, can go a long way to stop the spread of the virus. In our office and retail store, we have implemented temperature taking and contact detail recording, and have face masks available for symptomatic clients to use. Hand sanitizers are now a permanent fixture in our retail store. Notwithstanding the challenges of Covid-19 prevention, providing liquidity for physical gold is still key for a properly functioning physical retail gold market in Singapore.
Initially, many observers were noting a casual correlation between the uptick in gold and the Covid-19 outbreak. However, the real drivers behind this rally could lie behind the combination of the full effects from interest rate cuts filtering in, disruption of global supply chain potentially leading to unseen inflationary risks, constant zero to negative yield environment and the peak gold scenario commented by analysts over the years. All of this may add up to a resurgent positive tone for the original safe haven precious metal: gold.
The revisit to 2012 price highs of US$1,702.50/oz. on March 9, 2020 has investors wondering if this is the gold bull market that everyone has been talking about and waiting for. Stay tuned to see how the markets will unfold.
GSC Live! will not be affected during this period and in fact this would be a good time for clients to benefit from the volatility in the precious metals market, 24 hours, 5 days a week with minimal mark ups as compared to physical bullion during this current global squeeze due to the Covid-19 supply chain disruptions.
Clients will still be able to transfer in or out, buy and store or sell from their holdings during this period.
Clients on GSAP need not worry as this program will still continue to accumulate precious metals for you throughout this period.
PMCP will still be offered and this program is appealing during this period as clients will only need to pay 2.25% above Perth Mint spot prices to own offshore Government Guaranteed precious metals!
During this period, clients will need to send us a 20% deposit before we will be able to lock in the buyback price of your bullion. Please send us an image of your bullion via email attachment or WhatsApp before confirmation of buyback prices.
Scrap jewellery buybacks will be suspended during this period as we are unable to authenticate the purity of the used jewellery.
New collateral loans will be suspended during this period. Current collateral loan clients will still be able to renew, redeem or sell their holdings. Note that physical collection and physical collateral ticket can only be issued after this period.
Brief Update: Latest Update on Global Shipments
Tuesday, March 31, 2020
10:27 AM
Global airlines have grounded their fleet and more are following suit. How does this translate to precious metals markets? And probably other markets as well?
As most of us are acutely aware, there is no actual shortage of Silver in the market. It is simply a case of demand exceeds supply drastically, and with more airlines grounding their fleet, this situation does not seem to be easing anytime soon.
Physical Premiums for immediate physical delivery of precious metals has continued to increase for the past week. Most significantly, we have seen premium costs for Silver increase exponentially. Costs per oz for bars and coins have increased by more than 200.00% thus far.
That being said, GoldSilver Central Pte Ltd maintains healthy supply lines and has recently brought in Silver Precious Metals to our retail shop. More will be brought over to the retail shop in batches and clients need not worry about not being able to purchase physical precious metals if they so choose to.
Food For Thought: Covid-19 has been described as “the black swan of 2020”. And we all know that in tough times lie opportunities. The true question is, how can investors position themselves with the available tools to grasp these opportunities.
What is the 10 am GSC Reference Price?
The 10 am GSC Reference Price is an electronic snapshot of the Gold price at 10.00 am Singapore time taken directly from our price servers. GSC also uses the reference price as a confirmed price that clients can check and refer to transparently, that was used for the dollar cost averaging for their GSC Gold Savings Accumulation Program.
Click here to find more about the GSC Gold Savings Accumulation Program.
https://www.goldsilvercentral.com.sg/goldsilver-central-savings-accumulation-program/
Are there other types of reference prices used in the Gold market
Yes, there are a few known reference prices worldwide, with the LBMA Gold Price (previously commonly known as the London Gold Fix) being the most well known in the industry. The LBMA Gold Price is now currently being administered by the ICE Benchmark Administration (IBA).
More information about this can be found at this link here:
http://www.lbma.org.uk/lbma-gold-price
The GSC Reference Price is published on GSC’s website (historical data available for download) and updated also on GSC’s Reuters page 0#PREC=GSCP. This facilitates easy price data accessibility, transparency and provides a daily indication for Loco Singapore Gold prices.
Can clients use the 10am Reference Prices for their bullion purchases/sellback?
Yes you may. Please contact us to find out how can this be done.
Disclaimer:
In spite of GSC making every effort to ensure that the information displayed is accurate and complete, GoldSilver Central Pte Ltd is not liable for any errors, omission, inaccuracies, interruption, defect or delays in content or transmission, or for any actions taken in reliance thereon. Under no circumstance will GoldSilver Central be liable for any damages, including without limitation direct or indirect, special, incidental, punitive, or consequential damages, losses or expenses arising out of or relating to the use of the information, or decisions made by any persons or body based on the information provided therein.
In addition, GoldSilver Central Pte Ltd reserves the right to censor the Reference Price if GoldSilver Central Pte Ltd is of the view that the Reference Price was incorrectly, artificially or erroneously effected, obtained or manipulated to not truly reflect the true existing prevailing market prices at that point in time. Any edits done will be recorded with full data pre and post price snapshots disclosures with accompanying evidence to support this decision.
Gold pricing has been very illiquid and spreads have been widening to unprecedented levels for the past 2 days. We received news from various banks and liquidity providers that the volatility and subsequent spread widening are due to a breakdown in Exchange for Physical (EFP) gold. Accordingly, refineries are shutting down and market makers who had short EFP positions are being adversely affected. Currently the Gold futures market is in contango and the spot and futures prices have widen as much as $70 per oz on 24th March.
Point to note, there is no shortage of Gold in the market, just that at this point of time, demand overwhelms supply and the Gold supply chain is greatly affected due to measures announced by Governments to stem the threat of Covid-19 globally.
Read more:
https://www.reuters.com/article/us-gold-trading-cme-idUSKBN21B3GC
Suspension of Online purchases
Due to the recent huge volatility in Precious Metals prices and the influx of orders that have come in, we have temporarily suspended online checkout. This is to allow our team to ensure that the previous orders are all being accounted for and physical inventory are being allocated to these orders. As physical precious metals products are limited in our store, clients who visit us and fully pay for their precious metals purchases will get their physical precious metals or be allocated precious metals that we have secured and slated to arrive in the coming weeks.
Thank you for your kind understanding on this and will try our best to secure good premiums and inventory for our valued customers over the coming weeks.
Price of physical Silver decouples from Silver spot prices
Here at GoldSilver Central, we faced a huge increase in orders since the big selloff in financial & commodities markets on 6 March 2020. Silver prices fell to a low that was last seen 11 years ago. Demand for physical Silver soared globally and coupled with the effects of Covid-19, supply chains globally is affected. Many flights have been grounded or cancelled and many mints and refineries are at half strength due to government advisories to curb the community spread of Covid-19.
Physical premiums for coins went up to more than 250% and for bars it was way higher. The huge hike in premiums is unprecedented. In our 9 years in the Precious Metals trade, this is the 3rd squeeze we have experienced for silver but this is by far biggest challenge to Silver mints and refiners. For example, Perth Mint has just sent a notice to inform all dealers that silver sales has been suspended till further notice due to the backlog of orders due to the sudden influx of the sheer number of orders they have received recently.
Hence we have no choice but to raise the premiums on most of our products. Some of our products we have on hand are still at old premiums, like the Perth Mint 1kg coins so get it before it gets snapped up soon too!
However, do note that this doesn’t mean that the world is facing a shortage of Silver. The refineries have a daily limit on the number of products they can manufacture and when global demand way surpasses that, delivery schedule will delay. Silver, Gold and other Precious Metals have always been a price taker based on the Loco London prices. But this does not reflect the current physical demand that we are facing globally. Therefore we now see a decoupling of physical silver from the Loco London Silver prices. It will not make sense for miners to continue to mine for Precious Metals if prices go below their cost of mining so fundamentally, there is a downside cap for all precious metal prices.
Updates on Gold
As for Gold, GoldSilver Central has also faced an increase in demand too for Gold coins and bars but was not as drastic as the rush for Silver. Demand has increased for Gold way before the recent selloff and demand has picked up since the start of the year.
Premiums have increased too for Gold products but not much as silver, premiums for most gold products still did not increase above 100%.
We have just gotten some inventory of Gold bars in store and still have some inventory of the smaller gold bars and 1oz gold bars while stocks last!
Products clients can consider during this period of high premiums
During this period of increasing delivery time and high premiums, clients can consider other alternatives for buying into Precious Metals.
Firstly, you can look at the Perth Mint Certificate Program (PMCP). Clients can consider buying into the only Government Guaranteed accumulation program in the world. The cost above Perth Mint Precious Metal prices is only 2.25% for Gold, Silver & Platinum. Click here to learn more about PMCP!
Next, you can consider opening a GSC Live! account with us. This will allow you to lock in the precious metals prices for the metal that you wish to purchase and when premiums are back to normal, you can then decide to take delivery of the desired physical product that you were eyeing at the Loco London prices that you have locked in previously. Click here to learn more about GSC Live!
Thank you once again for your patience and understanding on the delays in our replies to emails, online chats and whatsapps and also for the long queues we have faced the past week. We always try to serve you to the best of our ability with as best prices as possible.
We have also secured some shipments in the coming weeks for silver (including some coins) and these will be open for preorders soon so stay tuned to our website and social media channels for latest updates!
Why You Should Swap Your Old Gold Jewellery to Gold Bullion?
Objectives:
Bring forth a case of converting your “useless” jewellery to a form that’s more useful
I believe we have all experienced at least one of the situations below:
- Received Gold jewellery as gifts for wedding, baby full moon shower, special events etc, but you don’t wear Gold jewellery!
- Your current jewellery design is obsolete, or it can’t be worn anymore, broken jewellery, lost one side of the earring and etc
- Your once beloved jewellery is sitting in a box somewhere safely stored aside, but otherwise quite useless
In our eyes, all these represent under-utilized assets! So begs the question, is there a way to better utilize these “old jewellery” other than exchanging new gold jewellery or encash it?
Yes, there is. You can choose to swap your old gold jewellery to LBMA Gold Bars and investment Gold bullion coins.
Why not encash it to SGD and keep it in my bank account then?
Well, that answer boils down to your personal objectives. We all know that keeping all our assets in SGD cash is not the wisest way to invest. (We’ll leave the topic of financial portfolio diversification for another day), but if you see gold as a possible asset class to hold in your portfolio, then swapping your illiquid Gold jewellery to a standardized LBMA format could be a possible way of building up your gold holdings. The general rule of thumb is to have 5-10% gold exposure in your portfolio, but this depends on individuals’ risk profiles. Contact us to speak more about this.
There are generally 2 common forms that clients swap their jewellery to and we have listed them both here for your comparison.
| Costs of swapping to “New” Jewellery | Costs of swapping to LBMA Gold Bullion | |
| Tax Rate | 7% GST | Tax Exempted |
| Workmanship (Premium) | High | Low – Medium |
| Buy/Sell Spread | Wider | Narrower |
| Conversion Cost | High | Low – Medium |
LBMA gold bullion are tax exempted in Singapore, you do not need to pay 7% GST for them. It is priced by spot price (market price) + premium (workmanship), which the conversion cost is relatively much cheaper compare to jewellery that has GST, marked up on gold price and workmanship.
The buy/sell spread for gold bullion is transparent as well, usually it ranges from 1% – 10%. Whereas the sellback of jewellery is normally given a discount of 15% – 18%, after adding 7% GST the spread will be more than 20%. And that does not include the different practices of different shops, such as levying additional administrative costs or having no transparency in the entire process.
An example based on indicative price:
GSC buyback price for 999 jewellery is at $70.10/g, the lowest premium 100g 999.9 gold bar is selling at S$7446.70. Jewellery shop 999 gold price is at $85.50/g. If you were to sell 100g of 999 jewellery and swap it into a 100g gold bar with GSC, you just need to top up $436.70. If you swap your jewellery to new 100g gold jewellery, considering the discount is only at 15% and you need to pay 7% GST, you need to top up $1,881 excluding the workmanship. The difference is obvious.
LBMA gold bullion has assurance of international liquidity. This is very powerful and essentially means that you are not tied to any bullion dealer should you wish to sell. (You could even bring the bar physically to an overseas country to sell if you wish to) When you do the swaps, you unlock more options in terms of how to utilise your Gold in compared to just wearing as jewellery. You won’t need to worry about fashion fads if you decide to pass your precious metals holdings to your children. Moreover, you are in the unique position of having your capital investment appreciate and being able to use that position to move to a better “investment form”, albeit the same asset class, Gold.
Wondering how much is your old gold jewellery worth now? Feel free to visit our website and retail store for free evaluation.
Trading and investing are two different methods of gaining profits from a market and both activities involves market participation at the right time. Traders take advantage of market volatility by entering and exiting market to take frequent profits while investors generally buy and hold assets or financial instruments over an extended period of time. Of course the reverse is possible too. Timing and convenience became an important factor in building wealth. What if you can have access to the market right in the palm of your hands?
GSC Live! is the mighty platform with endless possibilities that offers users access to the Precious Metals market anytime of the day. Apple and Android supported which means you are able to trade Gold, Silver and Platinum on your mobile phone. Here are 3 reasons why you should try GSC Live! today.
- Convenience: Its user-friendly interface makes it easy to understand and operate. And because you can download the application, you can check and execute trades while you are having a meal, shopping for groceries or even while you are travelling abroad. Other features include setting pending orders that helps you manage your trades while you are asleep. You can even leave buy or sell limit orders and GSC Live! will auto execute your trade when your desired price is reached.
- Instant execution: GSC Live! is ready for you to place your trades and they will be executed instantaneously. Not to worry about the latency of the data as all spot prices are in real time. You can buy or sell Gold, Silver or Platinum at the price you want.
- Spot Deliverable: You will be able to take physical delivery of what you have traded. We are the first Spot deliverable, physically backed Gold, Silver and Platinum in Singapore. Simply contact the GSC Live! team and we will provide the information on how to.
If you are still unsure, a demo version is available for you here. Follow the easy steps and you will have a tool to access the Precious Metals market. Download and try GSC Live! today for free!
It is common to mistake platinum for white gold due to their silvery white appearance. But they are distinguishable by their weight as platinum is 20% denser, weighing heavier than white gold. Scoring 3.5 on the Mohs scale, Platinum is harder than gold and more costly to produce. About 30 times rarer than gold, occurring at very low concentrations in the earth’s crust. Often the preferred choice of jewellery especially for couples as it symbolises strength, durability and endurance.
The automotive sector has the highest demand for Platinum. The metal’s active properties act as filters within catalytic converters of motor cars, helping to reduce harmful emissions. And because it does not react negatively to body tissue, they are considered biologically compatible metal and is used widely in hospitals for surgical instruments and implants. According to reports from World Platinum Investment Council, industrial demand for the metal are seeing an average 4.6% growth per annum from 1988 to 2019.
In the last 20 years, platinum reached its peak of $2,2253/oz in March 2008 and lowest of $785/oz in 2019. Interestingly, platinum backed investment jumped in the year 2019 particularly huge purchases in ETFs by large institutional investors. This maybe a hint to the market that corporate investors are speculating growth potentials. Perhaps it is time to consider diversifying your gold portfolio by buying some precious platinum.
But regardless if you are an investor looking to ride the platinum wave, a collector of platinum coins or diversify of your portfolio, GoldSilver Central is the one-stop solution that you need. Check out our website or drop-by our storefront and speak to our friendly staff. GoldSilver Central have an array of platinum bars and coins to meet your needs.
“Why is the premium for your Royal Canadian Mint Silver Bar 100oz more expensive than others?”
Lets face it, the above question has been asked by many precious metals investors out there looking to get the best value for their investments. And we totally understand that. Today, we will share with you a little of what goes on behind the scenes in the precious metals industry.
Price of a Physical Gold Bar = Market Spot Price + Physical Premium
This is how you calculate the total costs of your physical precious metals. Market price is easy enough to understand. That is the Loco London gold spot price that all bullion dealers internationally quote and refer to. (This is not true! Click here to find out why so?) So what is this “Physical Premium” about? Is it akin to “Workmanship” that is charged for jewellery?
Yes and No. Physical Premiums is not totally considered as workmanship per se.
The Physical Premium is the cost incurred when refineries cast the raw gold into the finished gold product forms, Ie coins/bars. When a distributor like GoldSilver Central purchases products directly from refineries, GSC pays this physical premium above the market spot price to the refinery in order to bring this product to Singapore. That being said, the physical premium includes other costs such as Storage costs, Insurance Costs and Delivery Costs. Thereafter, in order to run its business and earn some money, distributors typically add a margin within the premium and resell it to customers. For example, the costs for a Maple Leaf Silver Coin is US$1.80, GSC sells it at US$1.90, netting a 10c gross profit.
Keeping this in mind, the following situations are commonplace.
A same product would have different physical premiums in different countries.
Depending on the manner in which distributors obtain their supply, there will be different costs as well. (Of course the best is to buy from Distributors who work directly with refineries)
Sometimes when Premiums increase, it may not be due to the distributor. (Even more unlikely in this environment of increasing competition where profit margins will only continue to shrink) It may also be due to refineries increasing their premiums prices.
So thats it, a short writeup on physical premiums. Stay tuned as we continue our updates, to walk with you as you embark on your precious metals investing journey.
PS: Silver Prices have increased significantly over the past few months. We have been tracking the Royal Canadian Mint Silver Bar 100oz and their premiums have increased steadily since November last year. No telling if it will continue to increase.
One of our team members went to Korea and took this photo recently. For those of us unfamiliar, this is a love lock that lovers typically lock onto a public fixture (Most common a bridge or wall of sorts) to symbolize their love for each other. The key is supposedly then thrown away and their love is “unbreakable”. (Probably the author did not account for irate authorities or lock-picking thieves when he came up with this)
This Valentine’s day, we decided to explore why some people choose to “lock” their precious metals in a vault, whereas others just choose to leave them at home. What is the difference between a safety deposit box, a vault and my home safe anyway? Aren’t they all just places to store items safely? Today, we will head into the realm of vaulting security.
Home Safe
A metal safe box at your house where you apparently store your important papers under your personal name (Think title deeds, birth certificates, cash, etc.), all in the hopes that a burglar who breaks into your house will not find it/ deems it too troublesome to cart off a neatly packaged “takeaway container” of the things he came in to find in the first place. We jest, but you get the idea:)
PS: We must take this chance to state that we are very fortunate to reside in a safe country like Singapore.
Safety Deposit Box
A slight improvement from a home safe system where you place the actual metal box at a third party facility with security protocols implemented. Costs are incurred for the security personnel and the technology but are typically low across the industry. Privacy levels differ at different facilities but a general trend is the higher the level of privacy you require, the higher the annual costs. Insurance of your holdings is typically not available.
LBMA Network Vaults
The vault is maintained by an independent LBMA vault operator who follows international standards and have strict security protocols. Financial institutions typically store their holdings within these secure facilities and form an ecosystem that enables global liquidity management and easy location swaps. LBMA vaults perform an important role in providing secure locations where bullion transactions between bullion dealers are facilitated efficiently. 100% insurance coverage is provided and high levels of check and balances are maintained.
At GSC’s partner’s vault, whenever a GSC staff enters the vault, they are accompanied everywhere by a vault operator and the same security protocols for visitors apply to GSC staff as well. Any deposit and withdrawal of holdings is strictly controlled and holdings are inspected regularly to ensure accuracy and security
Click here to find out more information on LBMA vaults.
Private Vault
Similar to the combined concept of an LBMA vault operator and a safety deposit box system, but under a private vault operator who sets his own standards and might not prescribe to international standards. Such operators usually act alone (due to clients’ privacy) and are not connected to other ecosystems. Stored physical bullion typically have to be transported externally before transactions can occur. Counter party risk might be high depending on the solvency of the vault operator. Unfortunately, there have been known cases of operators absconding with their client’s assets.
Quick Comparison of Storage methods
Which among the 4 common options would be best to store precious metals you ask?
In a nutshell, it really depends on the clients’ needs and objectives! Different clients have different risk profiles and prioritize certain aspects of their portfolios over other factors. Speak to our Storage team for a more in depth analysis of your profile and portfolio to have a better idea.
So that’s it, a quick look at vaulting security. Keep in tune as we continue our updates, to make precious metals investing a transparent one.
PS: A quick shout out to GSC’s Storage Programme. We partner LBMA vault operators and seek to add value to our clients’ storage holdings.
Here’s how clients can maximize their holdings’ value:
- Instant Price Fix – Storage clients are able to phone in during office hours to sell their holdings instantaneously, regardless of their physical location.
- Live Valuation – When within GSC Vault Network, storage clients’ holdings are tracked with real-time prices, providing them a live valuation and profit/loss statement of their investment portfolio at any instance.
- Hassle-Free Administration – Clients do not have to worry about counting and keeping track how many pieces of each item they have. GSC sends a monthly statement with their item breakdown.
- Smart Analysis – Based on aggregated databases, we are able to optimize clients’ precious metals portfolio to achieve their objectives via portfolio rebalancing
Contact us at [email protected] or call us at +6562229703 if you are looking to maximize your precious metals potential.
It is common to mistake platinum for white gold due to their silvery white appearance. But they are distinguishable by their weight as platinum is 20% denser, weighing heavier than white gold. Scoring 3.5 on the Mohs scale, Platinum is harder than gold and more costly to produce. About 30 times rarer than gold, occurring at very low concentrations in the earth’s crust. Often the preferred choice of jewellery especially for couples as it symbolises strength, durability and endurance.
The automotive sector has the highest demand for Platinum. The metal’s active properties act as filters within catalytic converters of motor cars, helping to reduce harmful emissions. And because it does not react negatively to body tissue, they are considered biologically compatible metal and is used widely in hospitals for surgical instruments and implants. According to reports from World Platinum Investment Council, industrial demand for the metal are seeing an average 4.6% growth per annum from 1988 to 2019.
In the last 20 years, platinum reached its peak of $2,2253/oz in March 2008 and lowest of $785/oz in 2019. Interestingly, platinum backed investment jumped in the year 2019 particularly huge purchases in ETFs by large institutional investors. This maybe a hint to the market that corporate investors are speculating growth potentials. Perhaps it is time to consider diversifying your gold portfolio by buying some precious platinum.
But regardless if you are an investor looking to ride the platinum wave, a collector of platinum coins or diversify of your portfolio, GoldSilver Central is the one-stop solution that you need. Check out our website or drop-by our storefront and speak to our friendly staff. GoldSilver Central have an array of platinum bars and coins to meet your needs.
Dollar cost averaging is an investment strategy where you divide a total amount to be invested by the standard periodic purchases of a targeted asset. In other words, you are spacing out the intervals of your investment instead of committing to one larger amount. Avoiding the risk of making poorly timed decisions especially when the market is not in your favor. The key attribute to this strategy is the smoothening of investment risk. Lowering the risk and cost of wealth saving accumulation.
You can find plenty of similar offerings in the market, but have you heard of a precious metal accumulation plan? Yes! GoldSilver Central is offering the Savings Accumulation Program (GSAP), a metal accumulation method based on dollar cost averaging. For any increment of 100SGD or more per month you can start accumulating your savings in Gold, Silver or Platinum in your account.
Dollar cost averaging is suitable for highly volatile market such as Gold, Silver and Platinum. Fluctuations in pricing causes market uncertainly. By spacing out the accumulation, you are buying more when prices are lower and buying less when prices are high.
The flexibility of starting from as low as 100SGD per month is suitable for anyone who would like to start small. What this also means is if you feel comfortable, you can always opt to save more every month. Suitable for the young as a savings plan and also to institutional investors who are interested in the acquirement of precious metals over time 
The process is fully automated and no actions are required from you. Our system will proceed to execute daily based on the GSC 10AM Reference Price which you can find them at the top on our website. A statement with your accumulated holdings will be sent to you at the end of each accumulation month. We do the work so you can focus on what’s more important to you.One common question we have from you is if there is a solution to catch your desired price for selling your precious metals holdings to us.
Today, we will share how you can use our services to never miss out on cashing out on high prices for your bullion under a pooled allocated storage arrangement.
Solution A is for you if you are an investor who
- Wants an automatic arrangement for selling your bullion
- Knows the price level you want to sell your bullion at (Eg: I want to sell my 1kg Gold Bar at SGD 65500)
- Wants a straightforward method with minimal effort.
Here’s how it works:
- Bring your bullion you wish to sell to us during our operating hours where we will authenticate it.
- Your bullion will be stored with us under a pooled allocated arrangement (simply means that your bullion will be deposit into our holdings)
- Let us know what your specific selling price for your metals is. (For example: I want to sell my 1kg Gold Bar when it reaches SGD 65500).
- And it’s done! When spot BID prices have reached your desired selling price, it will automatically be sold.
- You will receive the proceeds via a Bank Transfer*
*we do need to onboard you as a client which means we need your NRIC and the header of your Bank Statement (reflecting the Name and Account Number). Please omit other sensitive information
- Wants full control of when you want to sell your holding
- Wants to sell your holdings bit by bit (For example, if you have a 100oz Silver Bar, you don’t have to sell 100oz at one go, but you can sell in 5oz sizes
- Want to set your own Sell Limits (Automated Feature)
Here’s how it works:
- Bring your bullion you wish to sell to us during our operating hours where we will authenticate it.
- Your bullion will be stored with us under a pooled allocated arrangement (simply means that your bullion will be deposit into our holdings)
- Unlock the Full GSC Live! Account Features with us by clicking here. This can be done before or during your visit.
- We will deposit the total weight of your metals into your GSC Live! Account.
- Login to your account under the “MetaTrader4” app in “GoldSilverCentral-Live” server.
- You can set Sell Limits to automatically trigger your desired selling prices or you can start selling your holdings whenever your desired prices are reached
Have more questions on the arrangements?
Drop us an email or a call and we’ll be happy to share more information with you!
Curious to know how we price our Gold Jewellery Buyback Prices on our website?
Here at GoldSilver Central, we do get many questions on how we calculate our buyback prices for Gold Jewellery and in this article, we aim to address some common questions you would have:
Q: How do I calculate GoldSilver Central’s Buyback Prices from the Gold Prices I see from mediums provided by General News Providers such as Channel News Asia?
Recall seeing prices like Gold: $1544.70 on mediums such as broadcast or on websites of general news providers?
The prices you reflected here are known as spot prices, and represents the prices for 1 troy ounce of Pure Gold. Spot prices refers to the live prices that a commodity is being transacted & delivered at the current moment. Prices are driven by Demand and Supply. The price for selling your Gold Jewellery to us would be based on the BID price.
1 Troy Ounce of Gold = 31.1035 Grams of Gold
Hence, if the price reflected is USD 1544.70, then 1 Grams of Gold would be:
USD 1544.70 ÷ 31.1035g = USD 49.66 per Grams.
Please take note that our buyback prices for Gold Jewellery are reflected in SGD hence, you would need to calculate (BID) Gold Prices in SGD.
If the ASK for USD/SGD is 1.3847, Gold Prices in SGD would be:
USD 49.66 x 1.3847 = SGD 68.76
This would be the spot price in SGD for 1 Gram of Gold.
So how do we price our Jewellery Buyback Prices from the Spot Price?
When this screenshot was taken, the Spot Price (BID) for Gold in SGD was SGD 2099.90 per troy ounce. Please take note that calculations here are based on estimates.
Final Buying Price = Spot Price (1 Gram) – Discount
As we will send the gold to a refiner for melt, the discount amount would include
- Melting Cost
- Transportation Cost (Shipping, etc)
- Insurance Cost for Shipping
- Manpower Cost
- Cost involved
Taking into consideration that Spot Price (BID) would be for Pure (999) Gold,
Spot Price for 1 gram of 999 Gold:
SGD 2099.90 ÷ 31.1035g = SGD 67.51 per gram.
Discount from Spot Price: SGD 67.51 – SGD 64.40 = SGD 3.11.
So, what if the Gold Jewellery you have is of 916 Purity?
Using the same Spot Price (BID) for Gold,
Spot Price for 1 gram of 916 Gold:
(SGD 2099.90 ÷ 31.1035g) x 91.6% = SGD 61.84 per gram
Discount from Spot Price: SGD 61.84 – SGD 58.30 = SGD 3.54
Note: The prices you see on our website would be the final NETT price, means there are no further deductions.
Q: How does a typical process look like when I sell my Gold Jewellery to you?
A typical process looks like this:
- Drop by our Retail Store during our Operating Hours with your Gold Jewellery.
- Our team will sort out your Gold Jewellery based on the purity
- After deducting the estimated weight for any stones on the jewellery, we will then refer to the Jewellery Buyback Prices on our website and use the rates as seen.
- Upon the confirmation of the total amount you would be getting for your Gold Jewellery, we would issue a buyback invoice and the amount will be given to you in Cash.
To see the latest prices for our Gold Jewellery Prices, Click Here.
The GSC Collateral Loan program enables you to retain full ownership of your physical metal holdings but also gives you the opportunity to monetize your assets for expansion of investments or when you need immediate cash flow. It is backed by a registered pawn broker in Singapore.
There are essentially 3 key points to take note of if you intend to make full use of this program to grow your investments* instead of storing your money in banks that give inflation-eroded interest rates:
- You already have precious metals on hand. If you seek liquidity, you can pawn the items to us instead of selling outright. The cost is only 1% interest a month for gold and 1.5% for silver and platinum. If prices go up more than the stipulated interest rate, you can redeem your items for the afore-agreed on principle amount and take profit while still maintain ownership of your items.
- You have no precious metals on hand but wish to own some. The Collateral Loan Program offers you leverage where you buy and then pawn the items with us at the respective loan-to-values (LTV): up to 85% for gold and 75% for silver and platinum. So basically, you can buy a gold kilobar valued at spot bid $65,000 and pawn it back to us at 85% LTV of $55,250. Hey you just paid $9,750 to own a gold kilobar with interest of 1% a month! Again you can choose to take physical delivery or sell your gold kilobar when prices rise above the interest costs to earn a profit.
- You have collateral loan items with us and can choose to revalue your pawn ticket when prices go up. This means you can get instant cash above the interest payment for the month.
For more information, please check out https://www.goldsilvercentral.com.sg/collateral-loan/
*As with any investment, there are risks involved. The above is based on the assumption that bullion prices are on a bullish trend. You may get back less than the amount invested if the market moves against you. You are advised to do your independent due diligence. Alternatively, you could approach us via walk-in, phone call or email for clarification.
You can set up your Price Alerts for the product you are monitoring! Here’s how you can do it:
Step 1: In a Single Product Page, scroll down to the multiple tabs area and click on “PRICE ALERT AND HISTORY”:
You will see the Price History of the product in a chart
Step 2: Click on “Setup Price Alert” as highlighted in this screenshot:
Step 3: You will see a pop up to key in your price and email. Key in your desired price and your email in the highlighted fields and click on “Create Price Alert” Button:
Step 4: You will get a confirmation pop-up and receive an email once the price drops to your indicated price.
World’s largest gold coin, worth $45M, makes NY Stock Exchange debut from CNBC.
New Yorkers are treated to a lovely view of the world’s largest and heaviest gold coin (with a value of SGD 61.47 million (.est)) ever minted. This colossal One Tonne Pure Gold Coin was delivered to the New York Stock Exchange (NYSE) in commemoration of Perth Mint’s latest investment products.
Richard Hayes, Perth Mint CEO, with the world’s largest gold coin. Copyright to The Perth Mint
WE ARE PRETTY BUMMED.
We’re pretty bummed that we can’t be there to view the 1-tonne Gold Coin upfront and to celebrate Perth Mint’s official launch for their latest investment products, so we’ll do here on our Little Red Dot with promotions and giveaways!
Take $5 off selected Perth Mint Lunar Silver Coins from today, Wednesday (17 July 2019 17:00) to Monday (22 July 2019 10:00). For every order on Perth Mint Lunar Series items under promotion, we are giving away Limited Quantities of Perth Mint Australia Kangaroo Gold Chocolate Coins and Perth Mint Gold Bar iPhone X Cases*!
See Perth Mint Specials!
*Only Limited to 1 Chocolate Coin or 1 iPhone X Case per Customer based on Available Stocks. Whilst Stocks Last
