Basically, with effect from 1 Oct 2012, the importation and supply of IPM in Singapore are exempt from GST. The supply of IPM which is exported continues to be zero-rated. However, only precious metals in the form of a bar, ingot, wafer and coin which meet certain criteria can qualify as IPM.
To provide certainty, precious metal coins that qualify as IPM are prescribed in the GST Act. Precious metals which do not meet the criteria cannot qualify as IPM and the supply of non-IPM continues to be taxable. Examples of non-IPM are jewellery, scrap precious metals, numismatic coins and precious metals which are refined by refiners who are not on the “Good Delivery” list of the London Bullion Market Association or the London Platinum and Palladium Market.
Gold trading hub
Singapore government is determined to make Singapore a precious metal trading hub. There is no licensing requirement for the importing and exporting of precious metals, thus ensuring free flow of gold and silver. It has also developed infrastructure to support the growth of the ecosystem.
The Singapore Freeport has been set up in 2010, with cutting edge security and conveniently located near to the Changi Airport. There are also a suite of secure logistic providers operating vaults and providing metal handling services. In addition, Metalor has set up a gold refinery in Singapore recently, thus adding vibrancy to the whole precious metal ecosystem.
Is it the right time to buy gold?
The perennial question often asked by investors is whether is it the right time to buy gold now. It is true indeed that there is a steep decline in gold prices since 2013 but then again, to succeed in investment, you have to adopt a contrarian approach. What this means is that you have to be greedy when there is fear and accumulate gold on the cheap. According to a report by IE Singapore, the global investment demand in gold has since doubled in 2009 to 1377 tonnes in 2013. Chinese and Indian consumers, spurred by the fall in gold prices, bought huge amount of gold jewellery, coin and bar investments. Given the fascination for gold among Asians and the growing household incomes, Asia is forecasted to be the driver of rising global demand for gold. So investors should grab this opportunity and accumulate gold or silver bullion now before it becomes expensive again.
How to buy gold bullion in Singapore
Investors who wish to buy gold bullion in Singapore can make their orders online from BullionStar and then collect their purchases from their bullion shop at 45 New Bridge Road, Singapore 059398. But what makes BullionStar really different from the rest of the precious metal dealers is that the company aims to share with investors the merits of investing in bullion through weekly articles and editorials. From their website, investors can learn the fundamentals of gold free of charge and understand the flaw in our fiat currency system. In this regard, I feel that BullionStar is not just merely providing a service, but also educating Singaporeans on how to be a successful wealth builder.
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SG Wealth Builder