Learn Gold & Silver Investing 101

Why Precious Metals?

Gold and silver have been historically significant as forms of money and stores of value for thousands of years. Central banks today still hold substantial reserves of gold as a hedge against economic instability.

With inflation rampant, an item that cost 1 cent a century ago now costs over a dollar. All currencies still in circulation today have lost 99% or more of their purchasing power over the past 100 years. Many currencies have become defunct through hyperinflation, decrees, or war. Governments, central banks, and banks benefit from the redistribution caused by inflation. Inflation is essentially a tax on your savings, redistributing wealth and purchasing power from late receivers of newly printed money to early receivers. The late receivers are you and me, while the early receivers are governments, central banks, and banks.

On the other hand, precious metals have been the ultimate form of money for thousands of years. Gold and silver have retained their purchasing power and value throughout all of recorded history, spanning 6,000 years or longer. Physical precious metals are the only asset type that retains value and wealth from century to century, millennium to millennium.

Gold, Silver or Platinum?

Gold is the ultimate asset, unmatched in its ability to retain value. No asset known to man is safer for preserving value than gold. Silver, on the other hand, often trades with a leverage to gold. While only about 10% of gold is used industrially, with the remainder used for bullion and jewelry, approximately 50% of all silver is used in industrial applications. Gold tends to thrive during financial and monetary crises and geopolitical uncertainty, whereas silver is more influenced by the business cycle and general economy. Central banks hold gold as a hedge and war chest to protect against monetary instability, inflation, and uncertainty.

Historically, the gold-to-silver ratio was often around 15:1, meaning 15 ounces of silver were equivalent to 1 ounce of gold. With the ratio being 60:1 to 120:1 in recent years, many analysts consider silver to be undervalued relative to gold. Consequently, gold is regarded as the best and safest core of a savings portfolio due to its reliability as a form of money, while silver can add an element of leverage and potential for higher returns.

Charts Gold, Silver or Platinum Why Buy Gold Why Invest in Silver Investing in Gold & Silver Bullion Good Delivery List

Weights and Measures

Gold and silver are often measured in troy ounces in addition to metric weights. One troy ounce equals 31.1 grams. This unit of measure is slightly heavier than the common avoirdupois ounce, which is 28.35 grams. Prices for precious metals are typically quoted in U.S. dollars (USD) per troy ounce but can be converted to any currency using the prevailing exchange rate.

Charts comparing the performance of precious metals against various currencies, commodities, and stock indices can be highly informative. These charts often demonstrate why savers and investors turn to precious metals for wealth preservation, particularly during times of economic uncertainty or inflation when the value of other asset types may decline.

Charts Set Spot Price Alerts

Physical or Paper Bullion?

Physical bullion bars and coins are the safest way to invest in gold, silver, and platinum, as they provide direct ownership of the metal and eliminate counterparty or default risks. Bullion refers to investment-grade bars and coins made from pure gold, silver, or platinum. While investment instruments like Exchange Traded Funds (ETFs) aim to mirror the price movements of precious metals, it's crucial to understand that owning an ETF does not equate to owning physical gold or silver. ETFs represent shares in a trust fund that depends on third-party claims of pooled metals, and ETF ownership does not grant direct possession of physical bullion.

Similarly, in the futures market, only about 1 in 2,500 contracts on COMEX, the largest gold futures market, result in delivery. A significant 99.96% of these contracts are settled in cash. Therefore, while many ETFs, futures, spot, and certificate markets claim to trade in gold, the actual physical backing is often questionable.

Physical vs Paper Gold Exchange Traded Funds COMEX Gold Futures Market Ways to Invest in Gold and Silver

Bars or Coins?

Bullion bars and coins are both popular among investors. Bullion bars, produced by refiners, often come from renowned Swiss refiners such as Argor-Heraeus, PAMP, and Metalor, all of which are carried by BullionStar. On the other hand, bullion coins are minted by prestigious institutions like the US Mint, Royal Canadian Mint, Perth Mint, Royal Mint, and Austrian Mint, known for their quality, design, and reputation.

Bullion bars typically have lower premiums over the spot price of the metal compared to bullion coins. Coins, however, appeal to those who value aesthetics and potential collector's value, and they offer more flexibility for selling portions of their holdings.

In Singapore, Investment Precious Metals (IPMs) are exempt from GST, allowing individuals to save or invest in physical precious metals without paying GST.

Bars vs Coins Serial Numbers Gold and Silver Bullion GST Exemption Purity Bars Minted Bars vs Cast Bars Coins

Sizes and Denominations

Larger denomination bullion typically offers better value for money compared to smaller denominations due to lower premiums over the spot price. For example, a 1-kg gold bar from a reputable mint will generally cost less per gram than ten 100-gram gold bars. This is because the production and handling costs are distributed over a larger amount of metal, reducing the cost per unit of weight.

However, bullion in smaller weight denominations provides greater flexibility in liquidating part of your holdings while retaining the rest. This flexibility can be advantageous for savers and investors who want to take advantage of potential price increases over time. For instance, selling one 100-gram bar allows you to realize some profit without having to sell your entire holding, unlike a 1-kg bar which must be sold as a whole. Larger weight bullion thus offers cost efficiency, while smaller weights provide liquidity and flexibility.

Divisibility

How much money do I need?

Investing in gold and silver can begin with small quantities, such as 1 oz of silver or 1 gram of gold. If you are looking to accumulate precious metals gradually, the Bullion Savings Program offers you a way to build up your holdings over time. For larger investments, bullion in higher weight denominations like the 1 kg or 1,000 oz silver bars, the 100 g or 1 kg gold bars provide better value due to lower premiums over the spot price.

Bullion Savings Program Buy Silver Buy Gold

Precious Metals Prices

When purchasing bullion, the price you see at the time of purchase vary minute-by-minute in response to market movements. The total price comprises two key components: the spot price and the premium.

Spot. This is the prevailing market price for precious metals on the London spot market, which sets the global benchmark for precious metals pricing.

Premium. When you buy precious metals, the price you pay is slightly above the spot price. This additional amount is known as the premium, which covers the costs associated with extracting, refining, and delivering the metal to its final form, as well as transport, insurance, storage, and retail expenses. The premium for a specific product can fluctuate based on market conditions, such as physical demand and supply. Since the spot price market is largely driven by paper trading rather than physical trading, shortages of physical metals or bullion products can occur occasionally.

Spread. The spread is the difference between the buying and selling prices.

Spot Price Premium Spread

No-Spread BullionStar Bars

If you are looking to trade physical precious metals bars, our zero-spread BullionStar bars are an excellent choice. We offer the 100 Gram BullionStar No-Spread Gold Bullion Bar and the 1 Kilogram BullionStar No-Spread Silver Bullion Bar.

Opting for no-spread bars eliminates the extra costs usually tied to buying and selling precious metals. With identical buy and sell prices, the zero-spread feature maximizes your investment potential and simplifies trading. These bars are also meticulously designed and refined by the renowned refineries Argor-Heraeus and Heraeus. Investing in BullionStar's no-spread gold and silver bars offers superior quality, cost efficiency, and reputable craftsmanship, making them ideal for both seasoned investors and newcomers to the precious metals market.

BullionStar No-Spread Gold Bar BullionStar No-Spread Silver Bar

How to Buy

Online. With BullionStar's website, you have full control over your bullion investments 24/7. You can buy, sell, withdraw, and manage your bullion effortlessly. Explore over 1,000 bullion products, access real-time prices updated by the minute, and take advantage of the latest discounts. Your BullionStar account provides comprehensive tools to manage your precious metals portfolio, such as generating certificates evidencing your holdings, viewing pictures of your bullion, and setting price alerts. Additionally, you can hold cash funds in your BullionStar account, ensuring seamless transactions.

Bullion Center. BullionStar's Bullion Center offers a museum-like experience in the heart of Singapore. It's a one-stop shop for all things precious metals. Browse through 30 showcase displays filled with a wide array of bullion. Experience the thrill of lifting a 400 oz gold bar, explore interactive games, and view our center's LED and widescreen dashboard, featuring charts and live prices on interactive displays. You can simply walk in to place your order, with settlement available in 12 currencies, including 4 cryptocurrencies. Payment options include cash, PayNow, NETS, card, bank transfer and cheque.

Buy Online Bullion Center Singapore

Delivery Options

You have several options for receiving your bullion: collect it in person at our Bullion Center, have it delivered to your doorstep, or store it securely in vault storage.

To pick up your bullion in person, visit our state-of-the-art Bullion Center conveniently located in central Singapore. This allows you to experience the process of collecting your physical bullion firsthand in a secure and professional environment. If you prefer shipping, we offer fully insured delivery directly to your doorstep. Your shipment will be traceable and covered against losses until it reaches you, ensuring peace of mind throughout the delivery process.

For those who choose vault storage, your bullion will be securely stored in our integrated bullion vault, providing the utmost security and ease of access when needed.

Bullion Center Lift a 400 oz gold bar Fully Insured

Vault Storage

As a major financial hub with a government supportive of precious metals infrastructure, Singapore offers exceptional high-security facilities and boasts one of the world’s lowest crime rates. This makes Singapore the premier jurisdiction for storing precious metals. If you choose to store your bullion with BullionStar, your assets will be securely vaulted in Le Freeport, a renowned maximum security vault facility in Singapore. Le Freeport is considered one of the world’s safest storage options, featuring state-of-the-art security, steel-bar-reinforced concrete vaults, and advanced surveillance systems, ensuring the highest level of protection for your assets.

Storing your bullion with BullionStar allows you to retain full legal ownership while maintaining complete online control of your physically allocated bullion. You can manage and view your holdings online at any time.

Your stored bullion is fully insured at its full replacement value. You can withdraw your metals physically at any time or visit us to physically audit your holdings. Through your BullionStar account, you can view images of your stored bullion, access audit reports from Bureau Veritas (the world’s foremost precious metals auditor), generate vault certificates, and utilize our Live Audit report to anonymously view all customer-owned bullion by product type and vault account number. Our storage fees are very competitive, making BullionStar an ideal choice for secure bullion storage in Singapore.

Storing Gold and Silver Bullion Storing Bullion in Singapore Direct to Storage Vault Storage Singapore Buy Online Bullion Center Singapore Safe Deposit Boxes