Physical Gold Shortages Grow | BullionStar Raises Premiums Amid High Demand

BullionStar is currently experiencing high demand and has raised price premiums on certain products.

We are updating our website to display real-time stock levels, allowing customers to track live inventory availability.

The online minimum order remains at SGD 99 (or equivalent in other currencies) for now but may be adjusted if demand continues to rise.

Refineries Imposing Surcharges and Suspending Production

Metalor, one of the leading Swiss refineries, has recently introduced a per-oz surcharge on all its gold products due to shortages increasing the gold lease rate, the widening spread between spot and futures, and tariff-related factors.

Another major Swiss refinery, Argor-Heraeus, has suspended orders for all 50-gram and 100-gram minted gold bars. While BullionStar still has these items in stock, replenishment may not be possible once they are sold out.

BullionStar Premiums & Minimum Orders

Given the rising demand, surcharges, and suspended production, we have increased premiums on certain products.

For now, we are maintaining the minimum online order of SGD 99 (or the equivalent in other currencies). However, if order volumes become unsustainable, we may need to adjust this threshold.

Customer sell prices have also been increased.

BullionStar Stock Inventory Levels

To enhance transparency, we have introduced live stock levels on our website for all key products. The quantity currently available for immediate purchase is displayed next to the “In Stock" label.

Therefore, customers can now track our stock levels in real time as potential shortages of physical gold and silver loom.

For some items, we also accept orders for products currently in transit. This is listed as “Pre-Sale" with quantity available and the expected arrival date.

For items labeled both “In Stock" and “Pre-Sale," the “In Stock" quantity is available for immediate delivery, while the “Pre-Sale" quantity consists of additional units that have already been ordered by us, are on the way to our facility, and can be ordered by customers

The different availability dates are also displayed at checkout when ordering beyond the in-stock quantity.

Please note that all pre-sale items are confirmed with availability from our suppliers. We deal exclusively in physical precious metals and avoid paper metal promises.

Physical Bullion and Refining Capacity Shortages

Wholesale and retail physical bullion shortages are emerging in other regions as well. In South Korea, for example, banks have suspended gold and silver sales due to surging demand.

Reports have also suggested tightness of certain gold bar sizes at the bank retail level in China. However, with the Shanghai Gold Exchange (SGE) being primarily physical—where most contracts result in physical delivery and withdrawals are possible for bars as small as 100 grams—China is well-positioned for a potential shift in price discovery from paper gold to physical gold.

Similarly, in the West, US institutional demand has skyrocketed with COMEX gold deliveries for Feb25 exceeding 60,000 contracts or over 200 metric tons. This comes on the heels of an immense 498 metric tons delivered in just the last two months. The sheer scale of these deliveries is overwhelming refineries and mints, stretching capacity to its limits and causing prolonged delays for new orders.