The Advent of Powerful Personal Bullion Testing Tools

Posted by Gregor Gregersen on 29 Mar 2016


Silver Bullion Pte Ltd


Dear Subscriber

One month duration P2P loans are now available. With such short term loan contracts, lenders the option to continuous lend out their funds month to month and thereby stay quite liquid while still earning a return. Given the very short duration, one month loans only require 160% of starting collateral rather than 200%, making the loans more efficient for a borrower who can get short term cash for as little as 0.2% for a month.

One gram Pebble Bars are now in-stock. Having sold around 25 tons of Nadir silver bars these last 6 months, we were able to negotiate a great deal on these Nadir Pebble gold bars. The first bar in the .9999 Nadir gold Pebble series are 1 gram bars which allows for a gram by gram gradual accumulation of physical bullion as well as making great gifts at around 67 SGD per bar. This is probably the best price in South East Asia for such 1 gram gold bars and we have nearly 6,000 pieces in-stock.

The Precious Metal Verifier (PMV) will be launched in Singapore on April 1st by The Safe House, our subsidiary, at the upcoming Singapore International Coin Fair. Read more about this device in this newsletter and, if you will be in Singapore between April 1st and 3rd, come visit us at the Marina Bay Sands convention centre. A PMV unit will also be made available for the public to use, at our main Silver Bullion store inside Certis Cisco.

 
The Advent of Powerful Personal Testing Tools

 

The subprime bubble and 2008 near financial meltdown were partially caused by people’s unwillingness to “look under the cover” as immortalized in the recent Hollywood hit “Big Short”.

By 2007 so called “No Income, No Job, No Assets” mortgages (NINJA loans) had become common and some banks even skipped doing basic due diligence on borrowers in exchange for higher interest rates (SISA loans). At its crescendo even pets could own 4 room houses as their owners took out mortgages in the pet’s name, pretending they were people with jobs, using such SISA loans.

While banks were buying, selling and re-packaging worthless mortgages, debt rating agencies mostly ignored the obvious fraud as the industry was swimming in profits. So many smart people worked in the industry yet very few had an interest, the morals or the intellect to really look under the covers until it all fell apart.

It is tempting to ignore unpleasant truths, but the lesson from 2008 should be to verify matters yourself. If you own physical gold or silver as your failsafe store of wealth it is prudent to “look under the cover” so that you know, not assume, that it is indeed genuine gold or silver.

To address these concerns in 2012 we developed DUX to reliably test and identify advanced bullion counterfeits using, among other tools, ECM and Ultrasound probes. DUX however requires trained personnel, custom software, specialized equipment licenses and very expensive testing tools to operate, it is neither easy nor convenient to set up and to do.

Advanced bullion counterfeits, which are not obvious to even seasoned buyers, can be well packaged bars or coins that mimic the real product very closely and partially rely on a retail customer’s reluctance to “open the packaging” or be “debased bars” whereby real gold bars have been skilfully filled with tungsten cores, making them very difficult to detect by traditional means.

Samples of Advanced Counterfeits

An advanced counterfeit 10 oz gold bar valued around 12,500 USD discovered in Manhattan
Notice how the center is black tungsten surrounded by a peeled layer of real gold to pass x-ray, acid and density tests.

 

Such advanced counterfeit bullion is often designed to thwart traditional testing tools such as weighing scales, acid, or densometers and to be sold into legitimate commerce via unsuspecting individuals, retail bullion dealers, pawnshops or jewellers.

The sophistication of such credible counterfeits is increasing and the number of advanced fakes in the secondary market is anybody’s guess. So it is unclear how widespread the problem is and whether it will worsen.

So I was intrigued when we came across a revolutionary new personal precious metal verifier (PMV for short) which promised reliability, ease of use and modest costs for “do-it-yourself” use. We tested the device for three weeks in our testing lab and found the device to correctly identify all high-end fake tests we threw at it.

The PMV probes the inside of a bar or coin using a highly tuned proprietary variation of Electrical Conductivity Measurements (ECM) which can reliably detect inserts and impurities, even behind a layer of real gold or silver. The PMV can even probe through most bullion packaging such as plastic coin holders or plastic packaging without breaking the packaging.

The full PMV set uses three type of probes, with each being optimized for certain test sample thickness, a coin example would be placed on the PMV directly while a 10 oz bar would require the dedicated bullion probe. Knowing which probe to use is the only real learning requirement for the user in its otherwise very simple operation.

I am impressed and believe that, once mass produced, these new generation testers can drastically reduce the spread of counterfeit bullion worldwide by being a strong deterrent to potential counterfeiters. The PMV is a tool that empowers private individuals and enables the industry at large to easily “look under the cover”. The tool's mere existence makes the industry safer in a way that the financial rating agencies have failed so spectacularly at with their Collateralized Debt Obligations (CTO) ratings.

With so many worthless mortgages still on bank balance sheets, record sovereign debts, and a global economy seemingly addicted to near zero interest rates and limitless money printing the very future of our current financial system will be challenged. Ownership of physical gold and silver are a great way to protect your wealth in a crisis, and reliable Do-It-Yourself testing will make it even more so.

By Gregor Gregersen

 
The Precious Metal Verifier Singapore Launch

The Safe House SG team will be manning a testing booth in cooperation with Carbone World Marketing at the upcoming 2016 Singapore Coin Fair held between April 1st and 3rd at the Sands Expo & Convention Centre, Marina Bay Sands.

You will be able to see the PMV in action along with more traditional testing tools. A first shipment of 20 Precious Metal Verifiers will be made available for purchase starting April 1st on with more on www.pmv.com.sg the way.

The Precious Metal Verifier Launch
 
The arrival of the 99.99% Gold Nadir Pebble Series

The distinctive 1 gram gold (pebble series) bar is packaged in a credit card sized blister pack, that individually serializes each bar for added security.

These bars are ideal for gifts or to gradually accumulate gold in small standardized units at a very good price for such 1 gram bars.

1 Gram Pebble Nadir Bars.
 
One Month Secured Peer to Peer Loans

One month loans are very short term loans which require only 160% worth of collateral instead of the usual 200%. The lower collateral requirements make borrowing more efficient without meaningfully increasing risk because of the short duration of the loan which makes large collateral price falls less likely.

One month loans are still subject to the same margin maintenance (125%) and liquidation (110%) rules as their longer duration loans. In the future we expect to have an option to automatically roll over loans based on your preferences.

Lender Benefits:

  • More flexibility to exit while still earning a return as lent funds are only committed for a month at a time
  • Safely roll over month to month as the collateral is re-adjusted to a minimum 160% of the loan amount every month
  • Minimal fees, a one month 10,000 USD 3% pa (0.25% per month) loan will cost around 4 USD in admin fees

Borrower Benefits:

  • Borrow more efficiently (160%) for a short period and roll-over as needed, pending value of your collateral
  • Option to efficiently pay back the loan ahead of time should you need the bullion
  • Minimal fees, a one month 10,000 USD 3% pa (0.25% per month) loan will cost around 4 USD in admin fees
 
Availability & Services
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Over 5,937,000 physical ounces sold since 2009.
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Bullion Secured P2P Loans Bullion Secured Peer to Peer Lending
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starting on

March 15th
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4.25% p.a.
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lowest rate

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(1 month SGD)
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Read about DUX Testing:
 

Note: Before importing bullion into Singapore ensure your bullion is classified as Tax Free Singapore IPM so you are not burdened with unnecessary import taxes.

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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