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We know physical bullion carries a premium and this premium includes the cost incurred for storage, insurance and delivery when we bring in the bullion from different countries to Singapore. However, despite paying a premium on top of the precious metals price, there are good reasons on why investors buy and own physical Precious Metals.

1. No counterparty risk:
   By owning a physical Precious Metals, there is no middleman or third party involved. The owner has it in his or her possession and can directly sell or trade it anywhere in the world.

2. It is a tangible asset:
   If you buy a physical Gold or Silver, you can hold/caress it in your hands and admire its beauty from time to time.

3. It is liquid and portable:
   LBMA accredited “Good Delivery” is highly liquid in the market. Unlike other investment forms such as fine art pieces which takes longer time to sell, physical bullion is portable and can be carried and sold to any authorized bullion dealer in the world based on the Loco London price.

4. Easy to store and low maintenance:
   Physical bullion holds high value and requires small spaces. It can be easily stored or hidden in your home. We do have a client bought a large Silver bar (1000oz) and placed it at the garden as a seat! Also, you can opt for professional storage program and store it in vault. Check out our GSC Bullion Storage Program with affordable storage fees!

5. Requires no specialized knowledge:
   You do not need professional skills or expertise in buying physical bullion. For other forms of investments such as diamonds, fine art pieces or antiques, you probably need certain product knowledge before investing in it. You may wonder how you can ensure that the bullion you bought is genuine. Well, the simplest way to ensure authenticity is to purchase from authorized, reputable bullion dealers.

GoldSilver Central is an authorized, reputable bullion dealer in Singapore for 10 years and we carry a wide range of physical bullion from various LBMA accredited mints and refineries. Just in case you did not know, this year March was our 10^th Anniversary! If you are interested in buying physical bullion, feel free to get in touch with us and we will be more than happy to walk with you throughout your Precious Metals investing journey!

Evonne

In Singapore, Investment Precious Metals (IPM) are exempt from the Government’s Goods and Services Tax (GST) staring on 1 October 2012. However, only Precious Metals in the form of a bar, ingot, wafer and coin that meets certain criteria can qualify as IPM. Bullion, jewellery, numismatic coins, scrap Precious Metals, Gold or Silver in collectible or gift forms are not qualified as IPM and hence not tax exempted and will still be subjected to the 7% GST.

So what is IPM and what is the criteria to qualify as an IPM bar, ingot and wafer? Below is a short summary of the criteria:

1. Gold has to be of at least 99.5% purity, Silver at least 99.9% purity or Platinum at least 99% purity.
2. It has to be capable of being traded on the international bullion market.
   A precious metal bar, ingot or wafer refined by a refiner with the following accreditation/ endorsement is regarded as meeting this criterion:
   1. (i)  For gold and silver, a refiner in the current or former ‘Good Delivery’ list of the London Bullion Market Association (LBMA)5;
   2. (ii)  For platinum, a refiner in the current or former ‘Good Delivery’ list of the London Platinum & Palladium Market (LPPM)6; or
3. It bears a mark or characteristic that is internationally accepted as guaranteeing its quality. For example, the hallmark of a LBMA accredited refiner.
4. It is not a decorative bar, ingot or wafer or a collector’s bar, ingot or wafer.

For the criteria of IPM coin, it is exempt based on criteria similar to those for IPM bar, ingot and wafer. Also, it is or was a legal tender in its country of origin. Here are some example of well-known IPM qualified Gold, Silver and Platinum coins.

List of qualifying Gold coins

List of qualifying Silver coins

List of qualifying Platinum coins

For full, complete guide on Exemption of Investment Precious Metals, please click here.

Fact of the day:

South Africa Krugerrand Gold coins and American Eagle Gold Coins are not GST exempted in Singapore as it does not meet the requirement of Gold purity of at least 99.5%. South Africa Krugerrand Gold coins and American Eagle gold coins are minted in 22k Gold which is 91.6% Gold but their gross weight weighs heavier than 1oz hence it still consists of 1oz of fine Gold for the 1oz denomination.

As a professional, reputable bullion dealer in Singapore, GoldSilver Central mainly deals in qualifying Gold, Silver and Platinum coins from LBMA accredited mint and refinery.

 Evonne

Those of us who purchase coins know that coins usually incur higher premiums compared to bars. We know it and yet we continue to do so, sometimes even incurring premium differences of more than 15%. The question is why? Today, we’ll discuss a few of the possible reasons and see if they continue to remain valid during this period, when precious metals come back into the spotlight.

Unique designs

Coins are usually minted differently from bars. Detailed designing goes into the coins, which increases their aesthetics (and premiums also). Designs change annually, resulting in a novelty factor. Take for instance the China Panda Silver Coins, where the design of the pandas, the backdrop of the coin setting and even the number of pandas present on the coin are highly scrutinized by avid investors. Different designs each year have also led to investors “collecting” them annually and then reselling the entire set for higher premiums. The different designs sometimes lead to higher demands for certain years also, for instance only the 2013 year has 3 pandas on its coins or the 2015 year which has no weight or fineness inscription and being the last year with 1 oz weight (subsequent years are cast in 30g basis) These years are highly sought after by investors who deem them as “rarer” than usual years. Hence, investors who purchase them possibly on the second hand market, are willing to pay a higher premium than average for these coins.

Bite sized amounts

Coins have generally been minted and stacked in denominations of 1oz whereas bars are usually of much larger denominations (10oz, 100oz). Investors value the small denominations as it allows them to buy and sell in smaller “amounts”. If say I have set aside SGD$1000 monthly for precious metals investments, I would be able to purchase approximately 22 pieces of 1oz silver coins at the current prices, compared to having to save up 4 months for a $4100 100oz silver bar. Bear in mind that I am only able to purchase a smaller quantity due to the higher premiums of the silver coins but I am also able to have spread out my purchases across multiple points. Prices might also have moved against me in that time period. (I wont complain though if it moves in my favour!) Similarly I am able to sell off my 88 x 1oz silver coins at different market prices, compared to having to sell 1 x 100oz silver bar.

PS: GoldSilver Central has products that allow investors to perform a daily Dollar Costs Averaging Savings plan called GSC Savings Accumulation Programme. Click here to find out more.

Tender Value

Coins produced by the refineries have a legal tender value on them too, which bars do not have. If you present a American Eagle Silver coin 1oz to the banks in the US, they will be bound to buy it back at a tender value of $1. Its significantly low compared to the current silver market price ($26+) yes, but in the scenario where Silver drops below $1, you have a guaranteed buyback of $1. Silver bars on the other hand, don’t have a legal tender value on them. This form of insurance might appeal to the cautious nature of us and some investors do consider this when purchase coins.

There are also cons to purchasing coins though and should be considered also.

Buyback Prices

High premium coins may not necessarily translate to higher selling prices when you are looking to sell it off. Precious Metals dealers look to provide liquidity in the physical market by offering two way prices. In order to do so, they usually peg their buyback prices to the market bid spot prices and the current physical demand supply equilibrium also. As the premium portion is a “subjective” one, there is no guarantee that you will be able to obtain a higher sellback price for your silver coins compared to bars at any point of time.

Think of an HDB flat in Singapore, its actual value could be worth $800,000 dollars and it is a prime location, but its actual selling price could be much lower than its “value”. The same could also happen for your “rare beautiful designed” coin. It could be a full collection of all the surviving coins in the world, but if no one is willing/able to bid a high enough price for it, you will have to choose to either accept the lowered price or hold onto it some more.

Hence, if you are looking to solely buy silver coins, you might look at having some silver bars as well for liquidity purposes.

Side note, if any dealer promises you a higher buyback price indefinitely, get that down in black and white writing because when market conditions take a turn, their policies might change too!

So, that’s it! A very quick look into the different reasons one might choose a coin over a bar. Bear in mind that much like other investments, technology in the precious metals industry is advancing and continues to alter the form of our precious metals investments. Even today, we have tools that allow customers to enhance their precious metals portfolio through various means, such as automated DCA strategies, fractionalized ownerships etc.

Click here to be informed if you like to be notified on any updates from us.

Jason

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

Why does Silver tarnish?

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

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

Does Silver tarnish affect its value?

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

How to better store your Silver?

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

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

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

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

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

Evonne

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

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

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.