Posted by Vergel Villasoto on 08 Mar 2015

March 2015 Newsletter - Community Networking Session

Silver Bullion Pte Ltd

We wish you all a happy Chinese New Year! In this newsletter, we shall be providing you with the first of our Silver Bullion weekly analysis articles. These will provide valuable insights into the current events around the world.

We also welcome you to visit our second Bullion Community Networking Session at The Knowledge Center on Thursday 19th March 6 to 8 pm.

”How should we invest when almost everything is near an all-time high? ”

Food and drinks will be provided. You can sign up for the free event here.




Second Networking Event at our "Silver and Gold Center" - March 19th

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:

·       "How should we invest when almost everything is near an all time high ?"

The venue and time:


19 March 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:

25 persons per session.

Register via our meetup page here.



The Year of the Goat

Gong Xi Fa Cai! Last month saw the greatest human migration of all time. During Chinese New Year hundreds of millions of people joined their families to celebrate the Lunar New Year, enjoy a feast and most importantly of all – rejoice in each other’s company. Long may it continue.

In just the decade that I have lived in Asia, one thing has become undeniably true – China matters. China has become the workshop of the world. Chinese agents roam from Argentina to Angola to Australia buying resources and real estate. Chinese tourists buy coffees next to the Eiffel Tower, students pay for expensive educations at UCLA and speculators snap up apartments in London without seeing them.

The liberalization of the Chinese economy began with Deng Xiaoping’s reforms in 1978 releasing the Chinese economy from a period of stagnation that arguably started in 1839 with the Opium Wars. Almost a century and a half of disaster followed; the Taiping Rebellion, the Boxer Rebellion, the collapse of the Qing Dynasty, the Warlord Era, the Japanese Invasion, the Chinese Civil War, the Great Leap Forward and the Cultural Revolution. By 1978, the Chinese peasant’s life was little better than his great, great, great, great, great grandfather’s.

Once China was able to experience free markets and some version of the rule of law, the Chinese populace proved their ability to build their fortunes. Her GDP went from approximately USD 200 billion in 1978 to USD 10 trillion in 2015. Despite inflation this is still a 50 fold increase in a generation. This has been achieved not via financial wizardry but by making real goods; first socks, then washing machines and now iPhones. Whilst recent claims that its economy has overtaken the USA or Europe are a little stretched, China has been the engine of world growth since the GFC. But it is the manner in which it overcame the financial disaster of 2008 that should make one consider the sustainability of this boom.

As has always been the way and in any country, the government gets to rule on the understanding that the people prosper – especially the rich and powerful. This arrangement is clearly understood by the Chinese government. In response to the GFC, the decision was made by the Western central banks to bail out the same banks that had caused the crisis. The ramifications of this will be felt later. In China, a different postponing strategy was taken; the People’s Bank of China made easy credit available to the oligarchs of heavy industry, many of them government princelings who run state backed companies. The greatest construction boom in the history of civilization followed. The data dwarfs the housing boom of the US in the noughties. Between 2011 -13 China produced more concrete than the USA did in the 20th Century. 20 cities per year were built and dozens of them became ghost cities. A replica of Manhattan was built on Conch Bay but stands empty. And yet because of the awesome boom in private debt, the Beijing house price to annual household income ratio is approximately 29:1. The same ratio in the US just before the subprime crisis hit was 3:1. A credit crunch should logically follow.

But the Communist Party cannot allow a massive credit crunch to happen. With the property/construction industry accounting for approximately 1/3 of the economy, the consequences would involve mass bankruptcies. In order to avoid significant social unrest, they shall have to copy their counterparts in the US, UK, Europe and Japan and try their best to devalue their currency. China has allowed the Chinese Yuan to appreciate 30% against the dollar in the last decade and has watched her main trading competitor – Japan make her goods and services more competitive by devaluing the Yen by 60% versus the Yuan in the last 5 years. This appreciation has been partly due to the internationalization of the Yuan owing to the resulting increase in demand for the currency.

China may well need to join the currency race to the bottom versus the other major economies. Whilst she faces stiff competition, she seems alone in having an end game plan – quietly stock piling bullion to prepare for the moment that the race is finished and all of the paper fiat currencies are indeed broken. This is being done by proxy via Hong Kong, by decree via state controlled gold mining and by free market forces via the Shanghai Gold Exchange. It is this kind of pragmatic thinking that explains why China has been the world’s largest economy for 17 out of the last 20 centuries.

Both the Chinese government and the Chinese people will continue to accumulate more gold and silver bullion than any other nation in the Year of the Goat. We can learn from their example. We wish you all a happy and prosperous New Year. Gong xi fa cai.

by James Cox
and The Safe House / Silver Bullion Team



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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