Posted by Admin on 30 Nov 2014

The 2014 Holiday Special and the Silver and Gold Center - November / December Newsletter

Silver Bullion Pte Ltd

Dear Subscriber

The year 2014 has been the year of "The Safe House" for us. The 9,500 square foot facility is currently at 10% capacity holding about 64,000 kg (~2 million troy oz) of silver, gold and platinum. 

Our facility is now listed, along with the FreePort, as a World Class Physical Infrastructure by IE Singapore (The government agency which oversaw the bullion tax exemption) and we are making good progress toward our goal of storing 1% of global above ground silver reserves at TSH within three years.

Last Thursday we have also been conferred the E50 Award, recognising the fifty (we ranked 33rd of 50) most enterprising privately-held local companies in Singapore as ranked by KPMG and the Singapore Business Times.

The upcoming year 2015 will be the year of "communication" for us as we seek to share in detail why gold and silver will play an increasingly important role in the coming decade and share many of the realities of wealth protection in our globalized world.

As part of these efforts in early 2015 we will be opening the "Silver and Gold Center", a new 2,000 square foot area located within Certis Cisco, next to the safe deposit box area and very close to our main office.

The center's mission is to communicate complex concepts in an interesting and understandable manner so that terms such as "dollar sterilization", "base money", "fractional reserves" or "unfunded liabilities" can be understood by an increasingly larger number of people.

The center will also have vault room analogue to explain vault operations and tours to showcase bullion testing methodologies such as ultrasound, ECM and X-ray spectrography.

As this center is about knowledge rather than sales, we plan to open the center up to third parties who wish to use the conference room within the center for presentations on relevant topics such as history, economics, money or finance.

Also in this newsletter:

  • Our December Special. Receive 1,500 boz for any bullion order submitted between November 30th and December 31st. These boz will permanently upgrade all tier 1 and 2 customers to the next discount tier and likely upgrade higher tier customers as well. Our highest tier customers will receive an automatic one time order discount as well.
  • The Swiss gold backing referendum, James Cox, our history and economic buff, shares his thoughts.
  • The latest Bureau Veritas(Inspectorate) Audit Report of S.T.A.R.@TSH bullion was just released by Inspectorate and is available for download.


The December 2014 Holiday Special
December 2014 Special
The Swiss Gold Referendum

The Swiss Gold Referendum

You may well be aware that on Sunday 30th November 2014, the Swiss people will vote in an historic referendum on the future of their financial security – whether or not to back the Swiss Franc, once again, with Gold.

A little background might be helpful. Switzerland’s voting system is unique in that Switzerland practices direct democracy, in which any citizen may challenge any law or propose a modification of the Constitution if they obtain 100,000 signatures of support.

An MP named Luzi Stamm - a lawyer by training, only recently came to grips with how the monetary system works and in so doing, realized that Switzerland made a mistake in abandoning the Gold Standard system that helped make the country a by-word for financial stability. (Privacy is another matter for another article.)

The background for Stamm’s decision stems from Switzerland’s decision to join the IMF if 1992 and in 2000 to sell off the majority of its Gold reserves that it had accumulated over centuries of prudent fiscal discipline, current account surpluses and hard work. From its original stock of 2,600 tons, the Swiss National Bank has now only 1,040 tons. Stamm decided to organize a petition with the following terms:

1. The gold of the Swiss National Bank must be stored physically in Switzerland. (Much of it is in the UK and Canada.)
2. The Swiss National Bank should no longer have the right to sell its gold reserves.
(This should require a separate authority.)
3. The Swiss National Bank must hold at least 20% of its total assets in gold.
(Traditionally around a 40% backing, there is now only 7.5% in gold.)

Luckily, there were 100,000 Swiss citizens well versed enough in their financial history to sign the petition. The reaction from the Swiss National Bank was not welcoming. Stating:

“The SNB does not generally comment on any political initiatives. However, the gold initiative has a very direct impact on the SNB’s capacity to act…. We share the objectives the initiators put forward, such as maintaining currency and price stability.”

It’s easy to understand why the SNB whom ‘does not generally comment on any political initiatives’ has reacted to this particular initiative. Firstly, retrieving the gold from foreign central banks might be a problem as Germany recently discovered. Secondly, since 1999 the SNB has inflated its money supply fivefold from approximately 100 billion CHF to 500 billion CHF. Inflating ones money supply is usually quite fun, reducing it again less so. Thirdly, the SNB sold off most of its Gold back when it was approximately $400 per oz – buying back 1,700 tons - even at current low prices would cost US $70 billion. Tricky.

Gold Bar Testing

A typical 400 oz gold bar used by central banks.


A recent poll shows 38% in favour of the proposal and 47% against. The breakdown of the demographics is extremely interesting indeed. The mainstream politicians and the financial sector are vocally against the proposal. They need unrestricted money printing to keep solvent. The wealthier voters have also polled against the proposal – disturbed by the warnings that a strong CHF on a gold standard would see the value of their stocks and real estate decline whilst their debts would be increased in relative value. The lower middle and working class seem to enjoy the idea of their wages going further and have polled ‘Yes’. The Italian ethnic minority of all classes generally polled ‘Yes’ as they are well aware of the disasters of the inflated Italian Lira.


And so here we have a microcosm of the broader problem. The Swiss, (like almost everyone in the developed world) are addicted to their unpayable debts being made bearable by ever lower interest rates – which in turn are made possible by reckless money printing. Each country must tackle reality and return to a gold standard sooner or later. As individuals, we are free to put ourselves on our own gold standard by placing a proportion of our own reserves in bullion. Doing so takes courage and an acceptance of having to live within one’s means. Switzerland’s chance is now.

by James Cox
and The Safe House / Silver Bullion Team
S.T.A.R.@TSH Third Party Audit Report

Inspectorate - Audit Report November 12th, 2014

An auditor team from Inspectorate (an LBMA approved inspection company) has physically matched all 6887 S.T.A.R. Parcels by Unique ID and fully reconciled them with the S.T.A.R. Parcel Ownership Report.

The 6887 Parcels held 2,003,404.50 troy ounces of reserved bullion of which:
  • 221 Parcels containing 71,188.70 oz are owned by Silver Bullion as S.T.A.R. Storage In-Stock inventory.
  • 6666 Parcels containing 1,932,215.80 oz are owned by S.T.A.R. Storage Customers.
S.T.A.R.@TSH customers can download the full audit report through their storage interface.

Gold Bar Testing Photo: A pallet cage containing 16 x 1,000 silver bars is lifted for inspection via stacker at TSH.

The 10 Key Questions of Systemic Risk Vaulting

Find out more about THE 10 KEY QUESTIONS OF SYSTEMIC CRISIS VAULTING and the advantages of a "Reserved" storage system that deals in customer property vs. "Fully Allocated" systems that deal in generic ounce liabilities.
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 shortly after the last newsletter the Royal Canadian Mint went on allocation due to a surge of demand while re-tooling for 2015 coins. A small 2014 coin shipment is still due to arrive but the bulk of mint production is now for 2015 coins which should arrive by late December. Our premiums are unaffected.
  • supply Silver American Eagles like the Canadians the US mint also had a surge of demand while re-tooling for 2015 coins causing a short term 2014 coin scarcity. Our premiums are unaffected.
  • supply Johnson Matthey 100 oz Poured Silver Bars - Availability is still good for our most popular silver bar (over 1 million ounces sold).
  • supply .9999 Royal Canadian Mint 100 oz Silver Bars - RCM bar supply times have lengthened a bit.
  • supply Gold Maple leaf supply times have lengthened, bar supply is plentiful however.
  • supply Perth Mint Silver Coins and Bars - a shipment of 2015 Kookaburra and Koala coins is arriving next week.
  • 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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