October 2013 Silver Bullion Newsletter - Good Bullion Availabilities, New Logo & Horses

Dear Subscriber

The new logo and slightly modified website layouts are part of a number of exciting improvements and capabilities that we will announce by the end of the year.

The old logo represented a solid beacon (a lighthouse) in a changing world (sunset) shining light (silver). The new logo is much simpler and represents the essence of what we do - provide the safest place possible to obtain and store precious metals.

Safety implies more than physical bullion security, insurance and third party checks. From the start we have planned for an upcoming USD currency crisis, a major financial collapse or a potential repeat of the US Gold Nationalization of 1933.

Safety includes clear unencumbered ownership of your bullion, a method to reliably and independently authenticate bullion and, for us, being financially independent by having no debts or other critical reliance on financial institutions. Even more importantly we have carefully worked towards ensuring that the sovereign, legal and regulatory exposure to the US is minimal to non-existent across the whole chain of counterparties.

So there is a strong foundation on which to build and a clear vision which I am eager to share with you in one of our future newsletters.

In the meantime you might be pleased to know that physical bullion availability has improved considerably over the last month as most mints and foundries have managed to catch up with backlogged orders. We have over 100,000 oz in stock now and made premium reductions for a large number of products in response.

It remains to be seen whether the current US Government shutdown is will cause another run on physical supplies. The market just moved up over 3% as I write this so we might see a big move into precious metals after all.

Singapore has prospered over the last forty years because the government has consistently enacted rational policies designed to grow the country over the long term. Some policies might not have payoffs for decades or might be unpopular (such as the lack of unemployment subsidies) but, unlike today's Western vote-buying policies, they are implemented nonetheless as they are deemed best for the long term prosperity of the country.

Lee Kuan Yew, the architect of modern Singapore, summed it up in his quote "I want to be correct, not politically correct" and over his lifetime it became clear that the interests of Singapore, not party or personal interest came first under his government. Read "From third World to First: the Singapore Story" on how rational policies brought immense success to this country.

So as the political squabbling in the US draws on and as the US government is shut down I cannot help but wonder how far we, in the West, have fallen. I called California my home for twelve years and still feel a strong bond to the people there, but US leadership has been hollowed out so much by party politics, special interests and plain ignorance that rational decisions seem to have become the exception rather than the norm.

When leaders no longer care about the country's future they will make promises that cannot be paid for, run outrageous deficits, print money to create a short term illusion of wealth and do it all, consciously or unconsciously for short term individual power gains at the expense of their citizens’ future.

Strong countries such as the US might be able to survive poor leadership for decades but when the accumulated debt burden becomes unpayable their leaders would be best advised not to draw too much public attention to their dismal fiscal and monetary situation. So it is astounding that US politicians would so carelessly invite casual observers to re-examine how solid the "Full Faith and Credit of the united States" really is nowadays.

Yet ultimately each of us is still the master of our own destiny. Six years ago I opted to:

• remove myself from such poorly lead systems and moved to Singapore
• greatly reduced my exposure to US and financial counterparty risk and switched into physical gold and silver

• Whilst all reasonable care will be taken when the bullion is in Silver Bullion’s custody, Silver Bullion shall not under any circumstances be responsible for any loss or damage, regardless of how caused, to the bullion during transit or while in the custody of Silver Bullion. You shall be responsible for obtaining all necessary insurance against accidental loss or damage to the bullion , either while in transit or in Silver Bullion’s custody.
  
  Note: See more information about transfer-In in the follow up newsletter at the bottom of this page

1 oz Lunar Coins - Year of the Horse

These 1-oz coins have very limited mintage and the year of the horse promises to be a popular design. Often they tend to sell at multiples of their metal value due to the collectible demand.

Instead of pricing these coins at high mark-ups we will sell the coins at normal 1 oz Perth Mint premiums (e.g. same as a kookaburra coin) but limit sales to  2 coins per customer as allocation would be quickly bought up by a single customer otherwise.

Please note that you will need to buy the coins from our store / office directly as we need to add these coins manually to an order. Orders are subject to availability at the time customer is in the office and the usual minimum order of SGD 500 applies. These coins are due to arrive next week along with the 1Kg and 10 oz coins.
 

1 Kg and 10 oz Lunar Coins - Year of the Horse

Limited supplies are due to arrive next week. Unlike the 1 oz coins the 1KG and 10 oz do not have a production limit so they can be pre-ordered if we do not have enough supply at the time of order.
 

1,000 oz Good Delivery LBMA Silver Bars

We now have some 1,000 oz LBMA Good Delivery bars availability. Take note that these bars never weigh exactly 1,000 troy ounces – so when you order, the system will initially assume 1,000 oz in weight and we will adjust the weight and price for your particular bar with the resulting order confirmation. The bars might vary greatly in shape or form.

We will soon list the weight of the available bars in the product description of the bars. When ordering you can optionally indicate the preference of the bar under the comment section of the order process.

• Silver Maple Leafs - Maple Leaf supply has mostly caught up with existing orders and supplies are available. There is very good - over 40,000 coins - local and storage availability and premiums have fallen.
   
• Silver American Eagles - American Silver Eagle coin availability has improved. The US Mint is not affected by the US government shutdown. There is local availability and we have reduced premiums on these coins
   
• Johnson Matthey 100 oz Poured Silver Bars - Availability is now good and premiums have fallen slightly.
   
• .9999 Royal Canadian Mint 100 oz Silver Bars - New supply of RCM bars are improving and we reduced premium on pre-orders.
   
• Gold - Gold Maple Leaf and gold bar supply is quite good and pre-orders can be obtained reliably within normal delivery timelines.

• Perth Mint Silver Coins and Bars - Lunar coins are becoming available. We will have limited amounts of 1 Kg, 10 oz and the limited production 1 oz Lunar - Year of the Horse - coins
   
• Perth Mint Gold Coins and Bars - Gold Kangaroo coins have arrived. 100 gram bars have just been sold out as have 1 kg Lunar Year of the Horse coins.
   
• Platinum - a fresh batch of 100 Perth Mint Platypus Platinum coins just arrived.

If you plan to import bullion into Singapore make sure you understand what type of bullion is classified as Singapore IPM Tax Free and what type is not, so that you are not burdened with unnecessary import taxes. See IPM Criteria & Tax Free Bullion for details.

See more products and prices at www.silverbullion.com.sg.

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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Dear Subscriber

We received inquiries about the meaning of the change of clause 8.1 of the Transfer-in Schedule. Please note that this clause affects only Transfer-in bullion whose shipments are handled by customers themselves.

Transfer-in is an optional service that allows customers to transfer their existing personal bullion from an external storage location into our S.T.A.R+ Storage program here in Singapore, instead of buying bullion from us in the usual manner. Under the transfer-in program, the customer handles his own shipping instead of Silver Bullion Pte Ltd, hence clause 8.1 of the Transfer In Addendum applies.

For standard bullion purchases through Silver Bullion Pte Ltd, the entire process of ordering and storing bullion, including shipping has full liability protection / insured as specified in the S.T.A.R. Storage Agreement. The Transfer-in program was developed because some customers want to store in S.T.A.R.+ but prefer not to sell their existing bullion stored elsewhere and re-purchase bullion from us as, in the case of US customers, this might result in a reporting requirement on their existing bullion sale and potential US capital gains taxes.

The program also allows customers, whose bullion is stuck at a vault which does not buy-back bullion (as they might not be able to buy back or they may not be able to authenticate bullion), an option to sell the bullion by having it transferred, tested and validated into S.T.A.R.+.

It is possible to transfer your existing Bullion - pending certain restrictions - into S.T.A.R.+ whereby it will become a S.T.A.R.+ parcel with all the benefits and controls of S.T.A.R.+. Including:

• Bullion "parcelization" with photo and full liability protection under S.T.A.R.+
• DUX tested and TPL marked to the Parcel so that results can be retrieved online.
• All S.T.A.R.+ storage parties - Silver Bullion Pte Ltd, Certis Cisco & Ferrari - or their eventual parent companies have no or minimal exposure or operations in the US - making them ideal storage in case of a repeat US Bullion Nationalization.
• All parcels can be easily sold back online or requested for physical delivery

This service is unique as vaults can store your retail bullion but will not entertain buybacks as they store on a "said to contain basis" and cannot test the bullion. For a customer we feel that bullion storage without an easy buyback option makes remote storage impractical at best as there is no easy way to close a position once you need money. S.T.A.R.+ and DUX makes transfers with buyback possible.

Restrictions:

Please understand that to make this system scalable and auditable our parcels have to be standardized in type and size which imposes a number of regulatory and bullion type restrictions. In particular the bullion must:

1. Be on our list of accepted transfer bullion, which is all IPM (tax free)
2. Be in standard parcel multiples (e.g. 500 oz monster boxes or 5 x 100 oz bars)
3. Must pass DUX Tests to enter into S.T.A.R.+

What you get:

It is your responsibility to ensure that your bullion reaches our office/depository in Singapore. [Clause 8.1 applies here] If you are located outside of Singapore this is not easy to organize as international bullion shipment as insurance and import paperwork need to be bought separately making it much harder than intra-country shipments. Shipment Options include:

• Commercial Shippers: Companies such as UPS and FedEx will normally only insure shipments up to a nominal amount (e.g. 500 USD) and external additional insurance is normally not available to private individuals. We highly discourage you from shipping internationally without full insurance and correct customs declaration (using correct HS codes for IPM bullion) as you would have no recourse if a shipments is lost, especially if the bullion cannot pass international customs due to incorrect a paperwork and is sent back. Some shippers such as DHL will not ship bullion in the first place.
• Precious Metal shippers: ViaMat or Brink's can handle these shipment requirements safely but such shipping is expensive and normally only makes sense if you are shipping substantial quantities (e.g. ten thousand ounces silver). Furthermore the process can be complicated, requiring separate shipments to a ViaMat/Brink's distribution center.
• In Person Delivery: Shipping just 20 oz of gold via a dedicated fully insured shipper internationally can easily cost as much as 1,200 USD. If you have the time and wish to transfer gold (as it is easily portable compared to silver) consider flying to Singapore and delivering the bullion yourself. This option would allow you to see our operations and get a feel of Singapore first-hand. If you are already in Singapore this latter option is the obvious choice.

Regardless of your shipping preference you need to understand which bullion is IPM (Tax Free) in Singapore to avoid paying a 7% tax on import or narrow down the bullion you bring in accordance to the type stored under S.T.A.R.+ Storage to avoid import issues. Note that we have close relationships with Singapore Customs and have helped to train customs officers on implementing bullion taxability rules so our processes are fully compliant with Singapore Customs.

Please note that the reality of international bullion shipments, unless comprising substantial volumes of IPM bullion, is that it might be cheaper and more effective to simply sell bullion in your home country and buy new bullion in Singapore directly.

Accepting and verifying bullion shipments as genuine, as opposed to store them on a "said to contain basis", is a unique process made possible by the combination of S.T.A.R.+ and DUX Testing. This process allows you to transfer bullion and, if requested, easily sell it to us. To our knowledge no other company in the industry is offering such a service because it exposes the receiving company (SB) to a lot of potential liability risk that has to be mitigated or eliminated through very careful process planning. Here is an overview on what happens when a bullion shipment arrives to our depository:

1. 24 CCTV cameras in our office / depository record how the package is received and signed for by SB personnel and the package is transferred into the safe room under CCTV.
2. SB staff unpack the bullion in the safe room test area - prominently displaying the package shipping ID or airway bill number - under high definition CCTV.
3. Contained Bullion is counted to match the packing list and bullion is DUX Tested and TPL marked - under high definition CCTV. Please note that this involves opening coin containers (see unpacking notice).
4. DUX-Passed Bullion is then packed according to prescribed multiples into tamper proof bags [having S.T.A.R.+ parcel number], sealed, photographed - all done under high definition CCTV - and kept in a safe for further transfer for long term storage in the vaults. The S.T.A.R.+ parcels have thus been created and will be entered into inventory being at our SB Depository where they are covered by SB insurance.
5. DUX-Failed Bullion is also packed into tamper proof bags [with unique parcel number] and sealed - under high definition CCTV. Customer will then be notified about the failed DUX Test and we will provide the CCTV video recording of the process and test results for maximum transparency. The tested bullion will be returned [pending available shipping solutions – to be paid by customer] to the customer.
6. Transfer to long term S.T.A.R.+ vault occurs at regular intervals whereby the bullion will enter vault operator inventory [with full liability coverage]. You will then be able to view Parcel Photos, Parcel Ownership List, Vault Operator Inventory Statements by parcel and DUX Test results by parcel online.

More information on the unpacking process:

DUX testing requires the opening and unsealing of eventual coin boxes, plastic sleeves or other such packaging as detailed below:

• Bullion coin monster boxes, with exception of sealed Mexican Libertad silver bullion coins which are originally packed with a secure seal, have to be opened for DUX testing. We test a minimum of five tubes which will each be sealed with an individual Tamper Proof Label [TPL] and the box itself will be "re-sealed" with a Silver Bullion Pte Ltd plastic strip similar to the ones used by most mints. Opening the box is a necessary precaution as a standard "sealed" 500 coin monster box only has a generic plastic strip that is not tamper proof nor tamper evident.
• Sealed bullion bars in plastic sleeves will be cut open and tested. If feasible the bar will then be placed back into the packaging and the cut section of the packaging will be sealed with a TPL. Otherwise the TPL will be placed directly on the bullion and the packaging discarded.

• Whilst all reasonable care will be taken when the bullion is in Silver Bullion’s custody, Silver Bullion shall not under any circumstances be responsible for any loss or damage, regardless of how caused, to the bullion during transit or while in the custody of Silver Bullion. You shall be responsible for obtaining all necessary insurance against accidental loss or damage to the bullion , either while in transit or in Silver Bullion’s custody.
  
  Clause 8.1 was worded to be overly protective by legal, we remedied this after a customer pointed this out. 

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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if you have changed your e-mail address, please reply to this e-mail and let us know.