Posted by Vergel Villasoto on 28 Feb 2015

January/February 2015 Newsletter

Silver Bullion Pte Ltd

Dear Subscriber

On February 5th we will have our first networking event and discussions about the ECB Quantitative Easing plans at the newly established Silver and Gold Center. It will be an evening of good food and great fun among bullion investors. Write us if you can come.

Should you be interested in a career in the precious metals industry, consider visiting the upcoming Global Trading Industry Career Fair at the Marina Bay Sands Expo and Convention Centre this coming weekend. Silver Bullion and The Safe House SG will have a booth there.

For US-based customers, we are announcing a great new payment option that allows for domestic US Fed wires or ACH payments to be done in place of international SWIFT payments. This enables much simpler and less expensive payment transactions. If you have a US account make sure to read more on this in our specially prepared guide and FAQ.

We are also proud to announce our newly revamped, and easier to use, secure notification system which offers a great private alternative to E-mails.

Also in this newsletter:

  • No More SGD 500 Minimum required when buying bullion. Minimum multiple purchase requirements still apply – for example, a tube of Canadian Silver Maple Leaf coins or five Johnson Matthey 100 oz silver bars for S.T.A.R. Storage.
  • "Whatever it takes" an analysis of Mario Draghi's upcoming policies by James Cox to set the mood for next Thursday’s discussion at the Silver and Gold Center.




Career Fair - January 31st and February 1st

Mario Draghi

Marina Bay Sands

This Saturday and Sunday we will have a stand at The Global Trading Industry Carrer Fair at the Marina Bay Sands Expo and Convention Centre, Level 1, Hall C, here in Singapore.

The fair is a networking event meant to introduce students and employment seekers to job opportunities in precious metals and other industries.

Come visit us or join us at the public panel discussion on Sunday between 1300hrs – 1400hrs themed "A Shining Career in Gold Trading" in Hall C to find out more about the this growing industry in Singapore.

This can be a good opportunity to find out more about careers in this growing industry in Singapore.

First Networking Event at our "Silver and Gold Center" - February 5th

We hope you will join us for an evening of good food and great fun among bullion investors as we exchange viewpoints on recent financial events and their correlation with bullion prices. Our themes will be:

·       Why was the Swiss Franc suddenly unpegged from the Euro ?

·       European Quantitative Easing, what will it mean for us ?

The venue and time:


5 February 2015


6 – 7 pm (Socialising with foods and drinks)
7 – 8 pm (Discussion on the theme)



Gold and Silver Center / Silver Bullion Pte Ltd
20 Jalan Afifi, #03-05
Certis Cisco Centre 2
Singapore 409179
(our second office unit on the same floor, turn right once out of the elevator)

No. of pax:

20+ persons per session. Please let us via by e-mail if you can make it.



“Whatever it takes.”

Having kindly picked me up from Heathrow Airport just before Christmas, by brother pulled into a petrol station to fill up his car. Having seen that the petrol price had in fact gone down from an outrageous £1.30 to a less punishing £1.22 per litre he audibly exhaled with relief. The pound in his pocket going further is a respite that most of us can appreciate.

Approximately 400 miles away in Frankfurt, the same fact caused Mario Draghi to inhale with despair. A high oil/petrol price is an important cause of inflation. As President of the European Central Bank, he must have inflation no matter what. But how to cause it?

Mario Draghi

Mario Draghi

The man who had saved the European Debt Crisis in 2011 simply by vowing to do ‘whatever it takes’ knows that 2015 promises to be a tough year. He must try and prevent another debt crisis and the most important factor is to keep Debt to GDP ratios down. Given that getting governments to spend less is difficult the only other option available is to increase GDP, either through growth or inflation. How that number goes up really doesn’t matter - so long as it does.

The ECB is rather different from its other, more independent central banks of the US, UK, China and Japan. Draghi envies their independent, ‘print as much money as we fancy’ freedoms. Bound by inconvenient rules and dominated by the Germans who still believe in outdated ideas of ‘trying to only spend approximately what you earn’ he has been largely denied the ability to use ‘quantitative easing’ and has instead been persevering with ‘Negative Interest Rate Policy.’ The ECB is not alone; Denmark and Sweden used negative interest rates in 2012 and Switzerland has also recently joined the club.

What is a ‘Negative Interest Rate Policy’ (NIRP)?

We are familiar with ‘real negative interest rates’ – the tiny interest rate on your savings account being less than inflation. However, since mid-2014, the ECB has been actually charging the larger eligible banks on their excess deposits. In normal times, banks have generally lent the maximum they can and a minimum of cash in fractional reserve. In bad times however, banks have preferred to keep money on deposit at the central bank even with a negative interest rate on those deposits.

What is the goal of NIRP?

The goal of NIRP is to incentivize banks into removing money from the ECB and lending that money to the general public. They should theoretically do so because they would then receive interest rather than pay it - increasing the amount of money in the system - causing inflation. Each transaction would be recorded at a higher price, and therefore higher GDP - goal achieved.

Why has NIRP largely not worked?

Firstly, most Europeans are, like the rest of the Western world already maxed out with debt and simply do not wish to borrow more. Secondly, European banks who only have to comply to a fractional reserve requirement ratio of 1% are understandably nervous about lending to people who may well default. A -0.2% loss to the ECB is preferable to a 100% default on a loan.

Why not push NIRP even lower – won’t that make banks lend!?

The rate on the deposit facility has already been moved -0.1 to -0.2% but there is a risk of this backfiring. Given that banks are reluctant to lend, they have often responded in creating new charges and fees. However, Deutsche Skatbank in Germany now charges its customers 0.25% on deposits and more banks look set to follow suit. Eventually, customers might quite rightly conclude that rather than paying to keep their money in an insolvent bank they would prefer to simply withdraw it and keep it at home. This may well escalate into a full blown banking crisis if only a fraction of depositors come to the same decision. But why keep cash at home when gold and silver provider a much better protection over the long term – (they are after all still up some 60-70% (gold) and even 100% (silver) since the last financial crisis)?

So what happens next?

Since penning this article, the ECB announced last week that it would print EUR 60 billion a per month and in a pre-emptive strike the Swiss National Bank stunned the markets by abandoning the CHF/EUR 1.20 peg. However, perhaps more significantly, the fact that Draghi has confirmed it is possible to have negative interest rates without immediately causing a bank run will have been noted by other central bankers around the world. This gives them a much needed option in doing ‘whatever it takes’ to keep us on course in their monetary experimentation voyage into the great unknown.


by James Cox
and The Safe House / Silver Bullion Team




Simpler, Cheaper, Better

If you are transferring funds from a U.S. based USD account, this option allows you to pay your Silver Bullion order via a bank-to-bank domestic transfer in the United States providing a simple, reliable and less expensive way of initiating payments electronically.


·       International wire transfer is a tedious and time consuming process and has to be done during the bank’s business hours and sometimes even require your physical presence at the bank. A domestic interbank transfer can be easily made using your bank’s mobile/internet banking services.

·       International wire transfers are costly due to high banking fees. The domestic interbank transfer will cost a small fraction of an international SWIFT transfer.

·       A domestic transfer is easier for bank staff to process as international transfers are becoming more complex to execute.


Visit About Payment Options and download the full PDF and FAQ for details.




Ease of use, Privacy and Reliability

The secure notification system was designed to increase transaction data privacy by keeping notifications behind an encrypted interface on our server. It was originally limited to transaction specific exchanges and related documents.

Mario Draghi

Unread Notifications Link,
in the top right corner of the site

We have now released a major revision with improved capabilities and ease of use. The update was partially prompted by overzealous spam policies which could make e-mails unreliable as the sole mode of communication.

You can easily access your secure notifications, once logged in, through a link in the top right corner which displays whether, and how many, unread notifications you have.

Customer who prefer to receive no e-mails at all, not even notification reminder e-mails, will soon also have a "zero e-mail" option.

Customers who prefer to use e-mails primarily will continue to receive mails but will also have access to the notification system as a backup.

Find out more and try the new interface yourself.





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. @ The Safe House Availability

  • supplySilver Maple Leafs are still in short supply. Suppliers are on allocation and there have been some small premium increases. Supplies are expected to improve over the coming month. We have about 25,000 coin coming but most are pre-ordered already.
  • supplySilver American Eagles American Eagles are easier to source than Maples Leaf coins and are in-stock.
  • supplyJohnson Matthey 100 oz Poured Silver Bars - Availability is good for our most popular silver bar with 45,000 oz in stock.
  • supply.9999 Royal Canadian Mint 100 oz Silver Bars Availability is good with 55,000 oz in stock, the 10 oz bars are a bit harder to obtain.
  • supplyGold supply is fine.
  • supplyPerth Mint Silver Coins and Bars - Availability is fine for both coins and bar. We will be receiving a new gold coin shipment in the near future.
  • supplyPlatinum Credit Suisse Bars Platinum supply has improved somewhat.

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
and our storage facility at

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

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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