Posted by Admin on 08 Oct 2014

October Newsletter - Reduced Silver Bar Prices, Silver Shorts and Safe Deposit Boxes

Silver Bullion Pte Ltd

Dear Subscriber

I rarely stick my neck out on price predictions but I like to share with you how leveraged paper shorts have pushed silver prices to four and a half year lows, what the implication of the net short positions are and why this price makes for an excellent entry point for bullion.

Should you wish to take advantage of these low spot prices you might be glad to know that two of our most popular 100 bars can now be purchased at only 0.99 USD (JM Bars) and 1.04 USD (RCM bars) over spot at Tier 5. I have just bought a sizable amount of 100 oz silver bars myself.

Based on your feedback from our latest pricing poll Gold Maple Leaf coins and Kangaroo gold coins have also been lowered.

In addition Bitcoin has become a new payment option for amounts below 15,000 SGD. Find out more on how to make Bitcoin payments.

On the Storage side the TSH Safe Deposit Boxes are now operational. Read more about this storage option in this newsletter.

Silver pushed to a 4.5 year low by paper shorts

Selling Leveraged Borrowed Paper

Silver's recent 4 year lows of 17 USD have been caused by sell orders in the futures markets where, through leverage, a 10% deposit can control a 100% position and it is possible to sell "borrowed paper silver" that one does not own. This practice is called "shorting" and it allows relatively small amounts of money to create massive paper sell orders

Shorting is a way of betting on lower prices and, if short volumes are strong enough and the market small enough, they become a self-fulfilling prophecy as shorters dump even more money into shorts to push price lower and ideally demoralize holders of paper silver (longs) to sell at a loss and further push price lower. 

Because silver is the smallest widely traded commodity market, silver is a preferred market for such shorting. Furthermore the leveraged silver paper volumes easily dwarf the physical market so that price can be easily pushed - over the short term- in one direction or the other regardless of physical supply or demand. In the case of massive silver shorting some reasons will typically be invented to rationalize lower prices but the goal for shorters is to "sell first" and then ensure they can "buy back lower" later.

The other side of shorting, however is the requirement for shorters to eventually close their position by returning the borrowed paper which they must do by reversing their position and buying paper silver. Thus the more shorting occurs the more pent-up buying will have to occur later. 

Once the relationships between paper contracts, leverage and shorting is understood we can start to make sense of a few recent futures exchange statistics which point to silver being a great long-term buy at current prices.

Paper Silver is now 6,626 Contracts (33 Million oz) Net short

According to the Commodity Futures Trading Commission, hedge funds and money managers have a net short position of 6,626 contracts and that this position has been getting bigger for a while.

Speculators and hedge fund managers have been selling silver paper position that they do not own in a bet to lower prices. They now have a combined liability of over 33 million ounces of silver that they are obligated to buy, just to close their position. The amount might not be huge in paper terms but the very fact that it is negative (gold in comparison has net longs / positives of 44,200 contracts) means that paper traders have pushed prices exceedingly low indeed.

As a result of the low prices the gold to silver ratio is now hovering around 70. In other words, at current valuations you can exchange an ounce of gold for 70 ounces of silver making this metal cheap compared to gold as well, causing some of our customers to switch into silver from gold. This is particularly true as for most of recorded history this ratio was 15 to 1, which roughly matches the occurrence of gold versus silver in nature.

JM 100 oz Bars at The Safe House
100 oz Johnson Matthey Bars at The Safe House prior to parcelization. Courtesy of Bloomberg

Over the short term silver could be pushed even lower by leveraged paper futures, but ultimately the reality of decreasing physical silver supplies will assert itself and over the long term silver at 17 USD is a great value indeed.

by Gregor Gregersen 
and The Safe House / Silver Bullion Team

Vault Safe Deposit Boxes

Do-It-Yourself Storage

The Safe House Safe Deposit Boxes are a form of Do-It-Yourself (DIY) storage that provides you with your own physical deposit box thereby according a very high level of privacy and excellent security.

We improved on the traditional safe deposit box concept by:

  1. Offering large specialized boxes that can hold as much as 202 kg (445 lb) of weight.
  2. Storing the boxes within our high security vaults thereby enabling you to optionally use our excellent vault liability protection.
  3. Utilizing single-use tamper evident serialized metal seals to vastly improve box access integrity and transparency beyond the traditional key-only approach.
Class II Safe Deposit Boxes at The Safe House
Class II boxes inside the UL Class II vault, notice the heavy duty single-use metal seals.

Large Class I boxes are available for bulk storage and smaller Class II vault boxes for high value items. of the box by the client, these boxes are brought out (via forklift for class I boxes) from the vault into one of our inspection/viewing rooms where the seal is cut.

TSH Safe Deposit Boxes are ideally suited as a private high-security storage but they require a client’s or an authorized representative’s physical presence to open a box, making them best suited for long term storage.

Safe deposit boxes are a service of, and ordered directly from, The Safe House SG. Download a brochure here or e-mail [email protected] for reservations and more information.

New Releases and Specials
 JM 100 oz Silver Bars at 0.99 USD over spot and 100 oz RCM bars at 1.04 USD over spot

Get Our Best Prices!

Cumulative Discount Tiers record your past purchases along with your current order to determine your discount Tier which allows you to :
  • Enjoy steadily increasing discounts automatically when logged in. 
    Great for customer who wish to dollar average through regular purchasing of bullion.
  • Mix & match products at will. 
    Each purchase earns you boz (bullion ounces) toward your tier discount as follows:
    Each Purchased oz Counts as:
    1 Silver oz = 1 boz
    1 Gold oz = 10 boz
    1 Platinum oz = 10 boz
    To Determine Your Tier:
    Tier 1 0 to 1499 boz
    Tier 2 1500 to 2999 boz
    Tier 3 3000 to 4999 boz
    Tier 4 5000 to 9999 boz
    Tier 5 10000 to ++

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. @ The Safe House Availability
  • supply Silver Maple Leafs - over 15,000 of the 2014 coins in-stock.
  • supply Silver American Eagles - Available for pre-orders and small quantities in stock. Premiums are considerably higher than maples. 
  • supply Johnson Matthey 100 oz Poured Silver Bars - Availability is good of our most popular bars with 22,000 oz of these bars in-stock and 40,000 more oz incoming.
  • supply .9999 Royal Canadian Mint 100 oz Silver Bars - RCM bar supply is stable with decent In-stock availability and more on order.
  • supply Gold 750 oz in-stock availability Pre-orders can be obtained within normal delivery timelines.
  • supply Perth Mint Silver Coins and Bars - 2015 Year of the Goat silver coins have arrived.
  • supplyPlatinum Credit Suisse Bars Platinum supply has improved with 200 oz incoming.

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. 

If you prefer not to receive newsletters edit your profile online directly. 
if you have changed your e-mail address, please reply to this e-mail and let us know.