Vincent Tie

Posted by Vincent Tie on 09 Sep 2020

The Greatest Financial Storm of Our Generation Is Here, Do Not Store Bullion The Wrong Way!

The massive price correction in March saw gold and silver prices fall as low as $1,450 and $11.60 respectively. Since then, the price of gold has reached an all-time high of $2,074 and the silver price reached a 7-year high of $29.84.

This represented a 43% increase in the price of gold and a 157% increase in the price of silver. How much more in storage fees (in SGD terms*) did our S.T.A.R. Storage clients had to pay for the same amount of stored bullion during this period?

Zilch. Nada.

If you had stored bullion with another company, you could be charged storage fees calculated as a percentage of the value of the metal. You would be paying a lot more since then and in the future as this gold and silver bull market plays out over the next few years.

In comparison, storage rates for S.T.A.R. Storage as a percentage of the metal's value fall as prices rise. This is because S.T.A.R. Storage rates are charged based on fixed per ounce SGD rates annually. At current prices, our yearly storage rates for gold and silver as a percentage are only 0.37% and 0.74% respectively. Why pay more when that money could be used to buy more ounces of precious metals to increase your wealth?

And we have yet to mention the many aspects of our storage program that are specifically geared towards protecting wealth in a systemic crisis. We do not just store gold and silver. At a time when the world is awash in money printing and exponentially increasing debt, we enable our clients to truly own precious metals as private property and be free of the counterparty risk present with most gold and silver storage systems.

By design, our storage system ensures that our clients are asset owners, not creditors. When you store with us, your bullion is uniquely identified by their parcel IDs. Unique identification is a requirement for ownership. How can you own real estate if the property does not have a unique address? Similarly, the parcel ID uniquely identifies your bullion and allows ownership of specific bullion to be transferred to you with an invoice. Unlike certificates that have absolutely no legal premise, invoices provide strong legal protection to customers.

Our exclusive Singapore-only jurisdiction eliminates ties to Western jurisdictions thereby minimizing risks of gold nationalization by bankrupt governments. Our comprehensive liability protection for client's bullion includes coverage from loss due to mysterious disappearance - an area in insurance often not provided in the vaulting industry and normally not covered in standard “all-risk” insurance policies.

Our rigorous testing of bullion provides certainties that are not usually provided by the industry's “said to contain” storage systems. We are therefore able to provide our clients with a clear Genuinity Guarantee which is almost never offered in the industry.

The wilful money printing largess of governments and central banks has created the greatest financial storm of our generation. The crisis we see in the real economy now is but a small preview of the greater collapse ahead. The rise in the prices of gold and silver represent the beginning of a much larger shift of confidence towards precious metals and the destruction in the purchasing power of fiat currencies.

Protecting one's wealth has never been more critical. Be careful not to entrust your gold and silver to entities that make you a creditor instead of an owner. Such systems often work only in good times but in times of recession or shortage of bullion, they will almost certainly fall apart. Kyle Bass, the hedge fund manager best known on Wall Street for his prescient bet against subprime mortgages before 2008, understood these risks and he chose to take delivery of $1 billion in physical gold bullion from COMEX several years ago.

Contact our customer service team to learn more about transferring bullion holdings across jurisdictions to be stored under our S.T.A.R. Storage program.