Diversify Your Wealth with Investment Precious Metals

When it comes to precious metals like gold and silver, many Singaporean investors are still trying to figure out its status within the world of asset management.

As an emerging asset class, gold is often regarded as money and a form of long term safe-haven during times of financial crises. On the other hand, silver is deemed more as an investment instrument for investors to make money because of its short term price volatility. Whatever the case it may be, it is important for investors to diversify wealth across several asset classes, such as investment precious metals, so that during financial crises, the impact to wealth is mitigated.

In 2012, Singapore government announced that precious metals which qualify as Investment Precious Metals (IPM) will be exempt from GST. The change is to recognize gold and silver bullion as financial assets, and also to grow Singapore into a regional precious metal trading hub. Nonetheless, it is important to note that not all gold and silver bullion are granted the status of IPM. There are basically four criteria to meet:

Gold and Silver Bullion

Gold and Silver Bullion

  • It is gold of at least 99.5% purity, silver of at least 99.9% purity or platinum of at least 99% purity.
  • It is capable of being traded on the international bullion market.
  • It bears a mark or characteristic that is internationally accepted as guaranteeing its quality.
  • It trades at a price based on the spot price of the precious metal it contains.

Based on the above criteria, below is a list of coins recognized as IPM under the Fourth Schedule to the GST Act:

(a) List of qualifying gold coins

(i) America Buffalo

(ii) Australia Kangaroo Nugget

(iii) Australia Lunar

(iv) Austria Philharmoniker

(v) Canada Maple Leaf

(vi) China Panda

(vii) Malaysia Kijang Emas

(viii) Mexico Libertad

(ix) Singapore Lion

(x) United Kingdom Britannia

(b) List of qualifying silver coins

(i) America Eagle

(ii) Australia Kookaburra

(iii) Australia Koala

(iv) Australia Lunar

(v) Austria Philharmoniker

(vi) Canada Maple Leaf

(vii) China Panda

(viii) Mexico Libertad

(ix) United Kingdom Britannia

(c) List of qualifying platinum coins

(i) America Eagle

(ii) Australia Koala

(iii) Australia Platypus

(iv) Canada Maple Leaf

If you look carefully at the above lists, you would not be able to find the America Eagle gold coins, one of the most popular gold coins in the world. This is because the America Eagle gold coins do not meet the purity content requirements under the GST Act. It contains 91.67% Gold, 3.0% Silver, Balance Copper.

Notwithstanding the above, America Eagle gold coins are highly sought after by investors because they are produced by the United States Mint and guaranteed by the U.S. government to contain the stated amount of actual gold weight in troy ounces.

The obverse design features a figure of Lady Liberty with flowing hair, while the reverse side features a male eagle flying above a nest containing a female eagle and her hatchlings. The America Eagle gold coin is considered by many to be a very timeless piece of gold coin with attractive design. You can buy it online from United States Mint to Singapore but at a much higher premium because of the exchange rate and shipping cost.

BullionStar CEO

If you desired to have a piece of America Eagle gold coin at a cheaper cost, consider buying from BullionStar, one of the largest bullion dealers in Singapore. The founder, Torgny Persson, moved his family from Sweden because he found Singapore to be the best place in the world to own and store precious metals in the world. What set BullionStar apart from the rest of the bullion dealers are its user friendly online system and its physical store which allows wealth builders to view, buy, store and withdraw precious metals.

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Magically yours,

SG Wealth Builder

 

Updated: July 1, 2016 — 2:40 pm

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