Expats often find themselves with more disposable income in Singapore than in their home country. Many choose to invest in the stock market, real estate or savings. But have you ever considered investing in precious metals through buying physical bars of gold, silver or platinum?
Bunker Gold & Silver is an online platform that allows investors to buy and sell physical bars at the best price through a process known as “bid-ask spread”. We asked the company’s managing director Christophe Numa to explain some of the benefits. “With the uncertainty of the global debt and derivatives markets, our clients understand they need to diversify their investment portfolio with a physical asset and not put everything into financial or digital products like stocks, funds or savings accounts.”
Unlike real estate, investing in precious metals provides an investment you can carry and which is fungible – or easily interchangeable – worldwide. Bars can be bought and sold easily with a lower cost of transactions – around one percent for gold versus 11 to 15 percent for real estate.
All Bunker Gold & Silver bars are LBMA-certified (London Bullion Market Association – the trading market for gold and silver) and they respect the very important process called the “chain of integrity”. This ensures the purity of the bars and safeguards against damage or robbery. The serial numbers on each bar are linked to an individual account. This guarantees the same bar cannot be allocated to more than one client.
Bunker also offers its clients a local storage service in one of the most secured complexes in the world, Le Freeport near Changi. It’s located outside of the banking system in a free-zone area, in a complex where you’ll find other companies such as Christie’s.
However, as Christophe says, buying gold is not as simple as going into a shop and grabbing the first ingots or coins you see. It’s important to understand not only what to buy, as there are many different types of gold product, but also where to buy and how to store your bars, as this can make a big difference to your investment and financial future.
Christophe encourages investors to compare the different offers on the market. Bunker often conducts seminars and encourages any potential investors to investigate its options.
Reasons for investing in precious metals
Tax: Some precious metals are tax-free in Singapore (no capital gains tax).
Value: In 1900, US$100 would buy 150g of gold; the value of the same amount today would be $6,500.
Physical: Precious metals are a fungible, transportable, liquid asset.
Protection: Buying and selling bars of gold, silver and platinum is safer than investing in non-physical assets.
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