Bullion owners unlock more than S$8 million in capital through gold and silver backed P2P lending platform

SINGAPORE: Silver Bullion Pte Ltd (www.silverbullion.com.sg), a Singapore-based bullion dealer, has seen owners of physical gold and silver unlock over S$8 million in capital through 300 matched loans from their bullion (tax-exempted bars and coins) on its gold and silver backed P2P lending platform.

Launched in August 2015, Silver Bullion’s P2P lending platform is the first in the world to allow owners of physical precious metals to borrow against their gold and silver stored at its 630 ton vault, The Safe House.

Mr Vergel Villasoto, a Director of Silver Bullion Pte Ltd explains, “We are seeing increasing borrowing demand on our P2P loan platform. More bullion owners now realise that they would not need to sell their gold or silver to raise funds. They can borrow much-needed funds in the short term using their bullion as collateral while continuing to own their bullion and benefit from potential capital gain as with the recent rise in precious metals prices.”

Unlike unsecured P2P lending platforms, loans matched by Silver Bullion’s lending platform are fully backed by physical gold and silver. Loans with tenures longer than 6 months begin with a collateral-to-loan value of 200%. The exceptions are loans with the 1 month tenure which have a lower collateral-to-loan value of 160%.

Should the value of the collateral fall to 125%, borrowers receive a margin call, or have their collateral liquidated should the collateral-to-loan value falls to 110%. This gives full security to lenders.

Silver Bullion Pte Ltd is a Singapore registered bullion dealer offering tax-exempt precious metals for investment and storage at its high-security 630-ton precious metals vault, The Safe House.

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