Updates On Impact from Covid-19 Situation

Posted by Vincent Tie on 04 Apr 2020


4 April 2020 Update

The Singapore Government announced on 3 April that most work places will be closed from 7 April to 4 May, except for essential services, in the country’s latest measure to stem the spread of Covid-19. This is to reduce the chance of transmission by the workforce whilst commuting for work. In view of this, Silver Bullion’s office is expected to be closed from 7 April to 4 May.

However, our staff will be working from home during this period and will continue to assist customers with several available services listed below.

For local customers with orders ready to be collected, please collect your orders at our office by Monday 6 April. Our office will be opened from 7am to 9pm on 6 April to facilitate collection of orders. We will also be sending emails to these customers shortly. Orders not collected by 6 April will only be available for collection after the government’s mandated workplace closure period.

Suspended Services During Closure

The following services will be suspended while our office is closed during this period of time:

  1. Placing of orders for non-storage purchases
  2. Local pickup of orders
  3. Local buyback of bullion from customers
  4. Taking delivery of bullion at Silver Bullion’s office or at The Safe House
  5. In-person transfer of bullion for S.T.A.R. Storage
  6. Visits to The Safe House & in-person bullion audits*
  7. Access to Safe Deposit Boxes at The Safe House

*We plan to implement remote customer bullion audits soon. Check our website or subscribe to our newsletter for further updates.

Available Services During Closure

The following services will continue to be available:

  1. Customer support via phone and email
  2. Submission of buy and sell orders for S.T.A.R. Storage
  3. Processing of sell orders for S.T.A.R. Storage
  4. Processing of loans for our Secured P2P Loan platform
  5. Transfer of funds from S.T.A.R. Storage accounts to customers’ nominated bank accounts
  6. Transferring of bullion into S.T.A.R. Storage from another vault
  7. Processing of new S.T.A.R. Storage account applications
  8. Remote opening of Safe Deposit Boxes

During this time when global refining capacity and logistics are massively affected, we seek your understanding for potential delays in fulfilling your orders. Pending confirmation from the authorities regarding the operational ability of The Safe House during this period, we will do our best to continue to process incoming bullion shipments and inform you by email when your orders are fulfilled. All pre-orders will be fulfilled as we have sufficient stocks already on the way. 
 

You Can Continue to Reach Us By Phone or Email

The hours for our phone and email support remains unchanged

  • Weekdays: 7am to 1am (Singapore time)
  • Saturday: 9am to 1pm (Singapore time)

You can continue to contact us at (65) 6100 3040 or using Skype (our ID is [email protected]). Alternatively, send us an email at [email protected].

For our customers who have rented or plan to rent Safe Deposit Boxes with The Safe House, you can contact our staff directly by email([email protected]) or Skype(ID: [email protected]).

 

As new events relevant to Silver Bullion develops, you can check back on this page for the latest updates.

Please take good care of yourself and family. We continue to serve you during this trying time.

 

27 March 2020 Update

Gregor Gregersen, the founder of Silver Bullion, was asked by SBTV's host, Patrick Vierra, four key questions which are people's minds during these turbulent and uncertain times in the precious metals market. These are links to the four YouTube videos:

Why gold and silver prices are falling when physical demand is surging?

Why are gold and silver premiums so high right now?

Why are bullion dealers not paying more for gold and silver?

How is COVID-19 disrupting the spot market?

 

25 March 2020 Update

Global market uncertainty from the impact of Covid-19 is causing volatility in the spot prices of gold and silver. We have seen spot price feeds that dealers commonly subscribe to change erratically and differ substantially from other feeds. Certain feeds may not be updated as the price discovery mechanism between bullion banks and wholesalers may have froze from uncertainty in the markets.

For example, we noticed that different feeds could have a price difference of as much as $60 USD/oz within a 2-hour period between 7.30pm and around 9.45pm last night. Orders to buy bullion with Silver Bullion submitted within this period has had their prices adjust down to reflect the correct spot rate. At the same time, orders submitted to sell bullion to us will also be adjusted down or cancelled. Affected customers have been informed by email.

The above-mentioned 2-hour window is likely to coincide with news we have received that the London gold market froze sales of all 100oz and 400oz gold bars. This development was likely exacerbated by the shut down of 3 major Swiss refineries and the Royal Canadian Mint several days ago.

There are also news trickling out suggesting that some banks may have failed to deliver physical gold in COMEX due to gold shortages occuring globally. We could be seeing the physical market finally calling the bluff by the exchanges trading paper gold.

Silver Bullion is actively sourcing for bullion supplies for our customers. We seek your understanding during this unprecedented time if your orders are affected by pricing discrepancies in the market.

 

22 March 2020 Update

There are reports that the state council of Ticino has instructed three refiners in Ticino to be closed in light of Covid-19. Argor, PAMP and Valcambi are the biggest refiners in Ticino. Their closure looks to be extended into April 2020. Production of gold bars would no doubt be impacted causing delivery delays globally.

 

18 March 2020 Update

Over the last week, the prices of gold and silver as traded on futures exchanges have fallen drastically, while the demand for physical gold and silver spiked to exceptional levels in a manner that is reminiscent of 2008, 2011 and 2013.  As an anecdote, Silver Bullion has sold more than 10 metric tons of silver in the past week alone, which is five times our usual sales volume. To put things in perspective, that is equivalent to 650 monster boxes of silver coins! Other metals that we offer such as gold and platinum are experiencing similar demand spikes.

When a product experiences increased demand amid falling prices, shortages are a natural consequence. To address the shortage situation, an increasing number of suppliers and virtually all bullion dealers have raised their premiums, sometimes drastically.

Despite the increase in selling premiums, most dealers are still buying metal from their customers around spot or below spot rates. This means that buy sell spreads at some dealers are typically at 40%, even exceeding 100% in some cases.

While Silver Bullion is unable to keep premiums low on the sell side while preserving supply, we can however raise our buyback prices. This ensures that holders of metal as a whole enjoy the strong increases in premiums for their physical bullion. Visit our site for updated buyback rates here.

The Bigger Picture

This is an important opportunity for Silver Bullion and our peers in the industry. We need to collectively show the markets that physical bullion dealers can reliably make our own market in time of crisis. By adjusting both sell and buyback premiums to reflect physical supply and demand, we would essentially create a market driven physical price. Only in this manner can we partially detach the physical market from the highly leveraged paper markets.

We are working around the clock to ensure that our products remain in stock during these exceptional times.