Monday, November 14, 2016

SK Bullion Experience (Part 1)

I have been a client of BullionStar for the past few years and I've always enjoyed my shopping experience with them. I think the most major plus of BullionStar is the ability to execute orders online. I hadn't seen any dealers with such a good system until I stumbled upon SK Bullion.

SK Bullion is a subsidiary of the Soo Kee Group, which is a familiar jewelry shop in Singapore as well as a listed company (albeit with pretty shit performance on the SGX, -45% from IPO in Aug 2015). Their shit performance fazes me not because the beauty of precious metals is that once the goods are in your hand, there is zero counterparty risks anymore. Unless I am storing my bullion, there is no need to me to bother if the company will be around dealing for a long time. For convenience sake, of course that would be good. Of more importance is the authenticity of the products, which I have high confidence in because 1) they are SBMA members and 2) the products that I bought have their own tell-tale signs of being counterfeit.

Maples from 2013 have added security features that fakes have a hard time reproducing.
American Eagles have plenty of ways of checking, but like the Maples, they have very telling visual signs if they are fake.
RCM bars have serial numbers which helps with obvious fakes. However, being is this 10 oz range, I highly doubt getting a fake one from a dealer. The 100 oz are much more susceptible. The finish is also pretty unique, I highly doubt that fakes can replicate the detail of the RCM 10 oz. And like I said, it probably wouldn't be worth it.

Anyway, finally after quite a while of waiting on my ass to buy precious metals, I finally executed my order with SK Bullion. Why? The main thing that won me over was that their overall price was 1.54% cheaper than BullionStar and they were offering free insured delivery for my order which saves me a going down to the BullionStar store to pick up my order.

The pros of ordering from SK are, SLIGHTLY cheaper price, possible free delivery and a very nice summary at the end of the order with ask prices and also the currency rate used in the transaction. I executed my order at $1217 for gold and $17.26 for silver at a rate of 1.4163. Nice extra information to know, but probably not too useful for most people since it's hindsight information.

The con so far that I see is that you need to make the bank transfer immediately and check with them if they have received it or not. Even though the person on their side confirmed my payment, they haven't changed my order status. This is very annoying for me and I'm sure all other precious metals investors. One thing that the whole lot of us have is PARANOIA, so this sluggishness in updating my order status is bugging me quite a lot.

I've schedule the delivery for my goods to arrive by the end of the week, I'll probably do a small follow up post with some pictures of my new collection soon.


If precious metals continue to fall, I will be loading up the truck through BullionStar through their Vault Grams. I think the move in precious metals have already made the bulk of their downside move in this short term cycle, which is why I executed my orders. However, if they do fall further, I wouldn't be surprised. I honestly don't expect my precious metals investments to reap big money anytime too soon. I'm just happily stacking while I things are cheap.

Buy low, sell high.

That's something really counter intuitive, but oh well, I try my best.

15 comments:

  1. Hi,

    Thanks for the interesting post on BullionStar.
    Just wondering whether you are loading up on gold or silver?

    Regards,
    Gerald
    www.sgwealthbuilder.com

    ReplyDelete
    Replies
    1. Hi Gerald / SG Wealth Builder,

      Fellow precious metals comrade,

      I have been loading up on both. My personal "emergency" stack is about 50/50. Gold is definitely more useful because of the amount of value that can be packed into such a small mass.

      However, my for profit holdings is mostly silver, about 80%. The GSR is at 72 right now and I do think that we go lower in the longer run.

      How about you?

      Delete
  2. I see you forgot to thank me for first bringing SK Bullion to your attention :) Well you are welcome anyway

    ReplyDelete
    Replies
    1. Thanks Vikas Sharma for sharing the information. Once my delivery comes, I'll be able to write my second part and finish my review of them.

      Delete
  3. Oh they sell silver as well? Can use credit card? Even if they charge additional 3% for using card, will still be worth it as they are some card that give higher than 3% in rebates

    ReplyDelete
    Replies
    1. Hi Yew Khim,

      Yes they sell Silver as well.

      As of now, they only do Bank Trasnfer, COD and Cheque (after it is cleared). That credit card loophole would be nice, but yeah, don't really think any of the dealers would do that.

      Delete
  4. Silver bullion accepts card but charge extra 3%. And you can only pay online for card. You can't pay with card at the counter. But I find their price higher and variety of silver products are a lot lesser.

    But overall still cheaper after factoring in 3% and higher price if you know which card to use

    ReplyDelete
    Replies
    1. Wow YK! is buying online from silverbullion considered an "online purchase" from an online merchant? I can think of a few credit cards that has rebates over 3% that could be used if that is the case! Which card do you use? Did you successfully pay a lower price overall?

      Delete
  5. What is your recommended to buy on bullionstar? PAMP gold bar or Canadian gold coins?

    ReplyDelete
  6. SK Bullion is probably cheapest in town. They started at Beauty World Centre in Bukit Timah many years ago and was acquired by SK. Formally they are known as DK Bullion. Forget about BullionStar, simply too expensive.

    ReplyDelete
    Replies
    1. Hi Nixon,

      SK is cheaper, but really only just ever so slightly. I wouldn't write off BS completely. Their vault gram programme is quite a unique product and therefore a plus point to them.

      Delete
  7. Hello Sir, may I ask you actually purchased the metal from bullionstar or SK bullion? (Formally DK TRADING).

    ReplyDelete
    Replies
    1. Hey MO, I bought this batch from SK/

      Delete
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