Aug/Sep 2013 Silver Bullion Newsletter - Buybacks, Philharmonics Discounts and Bank Change

Posted by Admin on 03 Sep 2013


Silver Bullion Pte Ltd

Dear Subscriber

Although the supply situation for silver is relatively stable, the mints still have considerable order backlogs causing long delivery times to persist for most volume shipments.

To better reflect the supply situation we will be adjusting our premiums more closely in line with product availabilities. For September, this policy means that we are lowering prices on Silver Vienna Philharmonics coins as they have best availability. We are increasing our buyback rates premiums on 100 oz silver bars, as volume delivery timelines on these bars are still quite long.

With regard to buybacks, in August we successfully handled our first million dollar buyback transaction. In addition, we are witnessing a slight uptick in buyback activity in general. Given our ability to provide liquidity, we are eager to buy silver (and gold) from you and we offer very good buyback rates and deep liquidity, especially on bullion that is in larger than usual demand. To reinforce this policy, we have also increased our non-client buyback prices and removed the 40 oz minimum sellback restrictions.

Please also take note that we are switching our primary corporate bank accounts to DBS Bank. The current OCBC accounts will remain active until the end of the year.


India and Pakistan ban Gold, China buys

Recently I was at the Sovereign Man Entrepreneur camp, a four day non-profit camp that brings select entrepreneurs in as mentors and 50 select students from all over the world to the little known country of Lithuania to share know-how and build relationships.

A few individuals from India kept asking which regulations they have to overcome to buy and store gold and silver in Singapore. I have received similar inquiries from other Indian nationals and I often get incredulous or suspicious stares when I state that there are no taxes or regulatory limits on buying bullion in Singapore. Nowadays in India, gold has become an escape from the rupee's domain as many Indians and many Indian companies are prevented from sending their savings abroad through capital controls and taxes.

However, as the Indian government further regulates gold as an alternative store of value to the rupee, the metal's appeal is only getting stronger. This development prompted India to ban imports on coin coins altogether. Pakistan has followed suit and banned all imports of the yellow metal for 30 days in a bid to "deter smuggling of gold into India". Given Pakistan's historically tense relationship with India this official explanation seems rather strange.

Reasons expressed concerning the ban of gold and silver are seldom straightforward... after all it would not look good for a government to state "we are afraid that you don't trust our currency, so we are banning gold which you might otherwise be tempted to own instead of our currency".

The U.S. gold nationalization of April 5th 1933, which was unilaterally initiated by President Roosevelt through an executive order without legislative approval, was justified "to prevent hoarding of gold”. The British, during their period of low growth in the 1970s even made it an act of treason to use anything other than the British Pound to settle payments.

Bans on gold or silver are a clear sign that a country is in deep trouble and that the government does not have an effective plan to restore confidence. Within this context, bans, although dimming local access, actually tend to increase global demand rather than suppress it. This is because perceived counterparty risks increase, causing increased flights of safety into gold and silver.

This later phenomenon can be seen by the surge in activity in other Asian markets such as the physical Shanghai Gold Exchange as the Chinese are quietly diversifying their foreign reserves into gold and silver.

Asian demand currently seems to be causing large flows of metal from Western vaults. According to UK Statistics, in May 2013, 7,716,000 troy ounces of gold - 20 times more than normal - left the UK. Often this gold is headed for Switzerland to be re-cast into smaller bars and is then sent to these "wealthy" Asian markets.

These phenomena are all consistent with the ongoing shift of wealth from West to East. Although silver and gold have recovered some of their recent large losses, both metals (especially silver) are still quite inexpensive. Personally I believe this is an excellent time to get your share of physical and keep it for the long term.

by Gregor Gregersen


New Primary Bank Accounts
We are changing our primary bank to DBS.

DBS is Singapore's largest bank and is extremely well capitalized. DBS was also one of the few banks that challenged some smaller provisions of the US FATCA regulation sending a small but relevant signal to the IRS that there ought to be some limits in the one-sidedness of such regulations.

Furthermore, most Singaporeans use DBS/POSB accounts as their primary bank, making many local payments easier and faster. Internationally, wire transfers might also see a slight benefit as wires are often wired though DBS Bank as an intermediary.

Our current OCBC USD and SGD bank accounts will still be active until the end of the year. However, please send future wires to:

New USD Account:

Bank Name: DBS Bank
Bank Address: 12 Marina Boulevard, Marina Bay Financial Centre Tower 3
Singapore 018982
SWIFT Code: DBSSSGSG
USD Account: 0003-016066-01-8
Beneficiary: Silver Bullion Pte Ltd
For local transfers please note that our account type is “DBS Current”


New SGD Account:

Bank Name: DBS Bank
Bank Address: 12 Marina Boulevard, Marina Bay Financial Centre Tower 3
Singapore 018982
SWIFT Code: DBSSSGSG
SGD Account: 003-922974-7
Beneficiary: Silver Bullion Pte Ltd
For local transfers please note that our account type is “DBS Current”


Buyback Offer Increases
We want your Silver!
... and we have implemented the following to encourage buybacks:
  • 100 oz Johnson Matthey and Royal Canadian Mint silver bullion bars had a buyback rate increase given the current long delivery times on these bars
  • The minimum buyback amount of 40 silver ounces was removed to ease smaller sized sellback of bullion
  • The premium difference between customer and non-customer buyback was reduced to 2% from 3% to encourage non-customers to sell us their bullion
Please note that buyback bullion must qualify as GST free under Singapore IPM Rules.


September & Featured Bullion
 

Libertad 2013 Coins  - 1 oz

Reduced pricing on Silver Vienna Philharmonics - 1 oz
We are increasing Vienna Philharmonics orders to take advantage of the current coin availability and are reducing prices on these coins accordingly. Lower pricing on these coins should last at least until early October unless availability deteriorates. Tier 5 customers will enjoy a 2.95 USD premium over spot on these coins.

Silver Coin Koala 2013 - 1 oz

Silver Coin Kookaburra 2014 - 1oz
1kg, 10 oz and 1 oz Kookaburra 2014 coins are scheduled to arrive early next week and can be pre-ordered. 2014 Lunar coins will be released in phases with the 10oz and 1 KG coin becoming available in October.



Bullion Availability Update
In this section we summarize our inventory status and current bullion availabilities as reported by our suppliers and industry sources:
Local & S.T.A.R.+ Storage Availability
  • supply Silver Maple Leafs - Maple Leafs are still on allocation and at best we can obtain 20,000 to 30,000 coins per month. We just cleared pre-orders with a recent shipment and we do have some current in-stock availability.
     
  • supply Silver American Eagles - American Silver Eagle coin availability remains tight and premiums are high. There is some in-stock supply but we recommend opting for lower premium Maples or Philharmonics instead. Libertad coins have also gotten tight.
     
  • supply Silver Vienna Philharmonics - American Eagles, Maple Leafs and Libertad silver coins have considerable backorders globally causing shipping delays whereas Vienna Philharmonics are available with shorter delivery timelines. There are several thousand coins in-stock and a further 28,000 coin shipment is due for arrival soon providing decent in stock availability for these coins.
     
  • supply Johnson Matthey 100 oz Poured Silver Bars - Supply has been tight as the foundry was closed for maintenance and has just now re-sumed production. We expect some in-stock availability, after clearing pre-orders by late September.
     
  • supply .9999 Royal Canadian Mint 100 oz Silver Bars - RCM bar supply is still quite tight. There is a constant trickle however.
     
  • supply Libertad Coins - The mint has sold out of in-stock coins so allocations are in effect. We expect new in-stock supplies by late September or early October.
     
  • supply Gold - Gold Maple Leaf and Gold Bar supplies are good and can be obtained reliably. We increased our gold holdings to 750 oz which should result in greater in-stock gold availability.
  • supply Perth Mint Silver Coins and Bars - 1 oz, 10 oz and 1 KG kookaburra 2014 coins are due to arrive next week. 1 oz 2014 lunar coins are on allocation and 2014 Lunar 10 oz and 1 kg coins will be released in early October. We will parcel out 1 oz lunar coins to customers once available.
     
  • supply Perth Mint Gold Coins and Bars - Gold Lunar and Kangaroo coins and 100 gram bars should arrive later this month. We also had a shipment of 1 oz minted bars.
     
  • supply Platinum - Perth Mint Platypus Platinum coins and Platinum Maple Leafs are now available for Storage as well as local pickup. We also received a shipment of minted 1 oz Scotiabank Platinum bars.
     

If you plan to import bullion into Singapore make sure you understand what type of bullion is classified as Singapore IPM Tax Free and what type is not, so that you are not burdened with unnecessary import taxes. See IPM Criteria & Tax Free Bullion for details.


See more products and prices at www.silverbullion.com.sg.

Best Regards

The Silver Bullion Team
Silver Bullion Pte Ltd
Registration Nr: 200907537M
Floor #03-02A Certis CISCO Center II
20 Jalan Afifi, Singapore 409179
Singapore

Phone: (65) 6100-3040
Fax: (65) 6826-4022
Email: [email protected]

 

Information provided here should not be considered as advice or as an offer or enticement to buy, sell or trade. The contents of this publication, including any opinions and analysis, are strictly intended for educational use. Opinions expressed in bylined articles are those of the individual author and do not necessarily reflect the views of Silver Bullion Pte Ltd.

Silver Bullion Pte Ltd. makes no warranties, whether expressed or implied, as to the accuracy of the information provided or for eventual results obtained by using the information. In no case shall Silver Bullion Pte Ltd. be liable for direct, indirect, or incidental damages resulting from the use of the information.

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