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?
No. Physical Premiums is not 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.
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