March 2014 Silver Bullion Newsletter - The Launch of The Safe House SG Pte Ltd - Release Date 3/25/2014

Posted by Admin on 22 Apr 2014


Silver Bullion Pte Ltd

Dear Subscriber

As our S.T.A.R.+ Storage customers already know we have now completed, and are announcing, S.T.A.R. @The Safe House which is housed in our massive 625+ metric ton - custom developed - facility, operated by our subsidiary The Safe House SG Pte Ltd.

Through The Safe House SG Pte Ltd we have effectively moved our storage in-house and created a one-stop solution for trading, testing and storage of bullion that provides full contractual transparency along the entire storage chain with no material Western regulatory exposure.

This legal transparency is further strengthened through our unique parcel ownership system which makes customers legal title owners of bullion under Singapore law – as evidenced by their invoice listing specific parcels - as opposed to the unsecured creditor status which is typical of storage programs that deal in generic quantities of bullion.

S.T.A.R. @The Safe House is a huge step in our quest to develop the world’s safest bullion storage system and, as we seek to protect our own bullion - 120,000 oz of silver and 800 oz of gold - just as much as our client’s, we have taken no shortcuts to ensure the stored bullion will be safe physically, legally, jurisdictionally and free from encumbrances and counterparty risks by design.

Find out more at www.thesafehouse.sg.
(Note that the site's background video might be a bit slow to load in case of high traffic.)


About The Safe House SG Pte Ltd and Future Plans:
Silver Bullion Pte Ltd
S.T.A.R. @ The Safe House

S.T.A.R. @The Safe House expands on the parcel storage concept by adding RFID tags to the parcels and neatly storing them in sealed custom built 800 kg pallet cages which in turn are stored within narrow racks whose fit and weight add an additional layer of physical security.

The bullion parcels themselves are covered by an all-risk insurance by XL Group, a Lloyd's underwriter, and includes full infidelity and mysterious disappearance coverage, effectively protecting you, the bullion owner, from the possibility of operational errors or inside jobs by us for up to 100 million USD per loss. This policy effectively removes all physical storage risk for the customer.

 

The extremely strong insurance was made possible in part by the Vault Management System which splits deposit or withdrawal transactions into small steps (tracked via tickets) that are executed by three separate functional groups (Security, Vault Operations and Secured Logistics) in a manner that ensures that each ticket must be closed and is double or triple checked by the other separate functional groups.

The system's maturity and scope impressed the insurance underwriters so much that they agreed to insure the possibility of operational errors (Mysterious Disappearance) for 100 million USD at a reasonable premium. The vault management system itself is on an internal offline network ensuring utmost security and privacy.

Operational Security is handled by armed auxiliary police officers from Certis Cisco and the facility itself has 24/7 guards. Singapore Police is located only three minutes away and Police units will perform weekend and holiday patrols.

The silver depository itself is strategically reinforced by steel walls and is accessed via 2.5 ton Class 1 Vault door (see pictured above). The depository is protected by vibration, contact and motion sensors that are connected to two separate 24/7 monitoring services and the Silver Bullion office itself at Certis Cisco. Full CCTV coverage is stored locally and streamed via hardware encrypted virtual private network to and offsite location for redundant storage.

In addition to the massive 600 ton segregated Silver capacity another 25+ tons of Gold and Platinum segregated storage capacity is given by a UL rated Class 2 Bank Vault (having 1 foot thick composite vault walls) located inside the silver depository itself.

The Safe House also features a DUX testing lab, operated by Silver Bullion Pte Ltd, that tests transfer-in third party bullion (defined as bullion not coming from a mint or primary distributor) before they are parcelized and will associate a DUX test report, viewable online, to a parcel guaranteeing its genuinity.

Through these guarantees and parcel content standardization (as every parcel contains the same amount of bullion by product) Silver Bullion Pte Ltd has created a modest (currently 1,200,000 troy ounces) but highly advanced, version of a “Bullion Good Delivery Standard” and offers reliable buyback / liquidity for these parcels.

The considerable investments into The Safe House have been completely financed by Silver Bullion and neither Silver Bullion or The Safe House have any outside debt. Even after the Safe House investments Silver Bullion has a very strong net balance sheet of over 5 million SGD (about 4 million USD) and comparatively low expenses making Siler Bullion a very safe counterparty.

“The Safe House”, “Silver Bullion”, “DUX Testing” and “S.T.A.R. @The Safe House” have been carefully developed over the last five years to mutually reinforce each other and efficiently minimize identifiable risks, including systemic crises, within what we consider to be the most secure jurisdiction (Singapore).

Find out more about S.T.A.R. @The Safe House.

 

The launch of The Safe House, while a big accomplishment in itself, is but a stepping stone for additional services which we plan to announce in the second half of 2014.


by Gregor Gregersen
and the The Safe House / Silver Bullion Team

Notice of a small S.T.A.R. Storage Agreement Revision v.20140325:
The following update is made to clause:

"8.1 Physical inspections and updated reports of the Vault Operator Parcel Inventory scan listing all parcel numbers as evidenced from the independent vault inventory system. The Vault Operator is independent from Silver Bullion (as provided in Clause 7)".

The independent clause above is removed as Silver Bullion is the parent company of The Safe House. Please note that any potential loss of independence concerns should be amply made up by the increase of third party inspections and The Safe House insurance which assumes all risk of infidelity and mysterious disappearance.

"8.2 A physical inspection will be carried out by either professional precious metal auditor of international renown or Singapore Licensed Auditors at least once per year" Replace with "on a quarterly basis."

Third Party Inspection reports will be increased to be on a quarterly rather than annual basis.


10 Ounce Silver Royal Canadian Mint Bars
As we had a poll regarding 10 ounce Royal Canadian Mint bars for a long time an update is in order.

These bars have been delayed, most likely due to minting demand for coins which is only slowly getting better. Canadian Mint is still expected to release these bars in the near future however.

We are keen to carry these for both storage and retail and will update you once we can secure a sizable shipment.

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 Leaf supply is decent and getting better. We have some in-stock availability and over 35,000 of the 2014 coins on order.
     
  • supply Silver American Eagles - American Silver Eagle coin availability is getting better but premiums are still high.
     
  • supply Johnson Matthey 100 oz Poured Silver Bars - Availability is good, there will be a big incoming shipment and premiums have fallen slightly.
     
  • supply .9999 Royal Canadian Mint 100 oz Silver Bars -  RCM bars supply is stable.
     
  • supply Gold - We are currently out of stock but Gold Maple Leaf supply is good and coins/bars are on their way. Pre-orders can be obtained within normal delivery timelines. We will be receiving 1/10th and 1/4th ounce maples in the near future.
  • supply Perth Mint Silver Coins and Bars - We have 2014 coins in stock
     
  • supply Perth Mint Gold Coins and Bars - a 1 kg Gold Kangaroo coins is available. 100 gram bars and 1 oz coins will be re-ordered soon.
     
  • supplyPlatinum Credit Suisse Bars are difficult to procure. Recent mining disruptions seems to be part of the reason.

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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