Sunday, August 17, 2014

Gold and Silver Blind Test: Who is the cheapest dealer in Singapore?

The reason for me conducting this blind test today is to see who are the cheapest dealers in the market today for physical precious metals. As some may know, I keep my own personal holdings with BullionStar. This is my form of "audit" on them to see if they deserve to have my continued business.

Since it is a weekend, it is good for me to do this test. All prices are "frozen", since exchange rates and metal prices are not moving. This makes it much easier when I go around to all the different websites to see what is their current price right now if I decided to go immediately purchase from them.

I visited an array of websites so that I can get as many quotes as possible. I tried to put in very similar products to each category to make them comparable, but it is not that easy. Many of the dealers also do not sell every particular weight size as well.


So, here are the reference gold and silver spot prices, as well as the prevailing exchange rate.


So here I am looking at Gold in the different sizes of 10g, 100g and 1kg bars. As per usual, the small weights have a much larger price premium while the larger weights have a much smaller price premium. Simple economics of scale.

As you might notice, BullionStar and GoldOnline are consistently the cheapest dealers, with GoldSilverCentral always trailing behind in every weight. GoldOnline is the cheapest for 10g and 100g by a tiny fraction, while BullionStar sweeps the 1kg by quite a large margin.

The reason why the Umicore 1kg bars that BullionStar carries seems very cheap is perhaps because Umicore is one of the lesser known refiners for the Asian investor. It is a huge company that does not focus on refining metals, hence the lower brand awareness. Not a real issue for me, though I don't have $50k to buy a 1kg bar yet.


Now turning to Silver, the first thing that you might probably see is that GoldOnline is now the worst seller of Silver! From being the cheapest gold dealer, they are by far the worst silver dealer, by a LARGE margin. It's not even funny. Silver AG does have good prices, but their product line is very limited. BullionStar again is just a hair's length behind from being the market leader in terms of silver pricing.

Conclusion

This isn't the perfect test to tell which dealer has the best price, but I think has done a pretty good job to paint a realistic picture of the physical precious metal prices and premiums of local dealers.

BullionStar was not the cheapest dealer for both Gold and Silver, but it was only slightly behind the cheapest dealers. Since it really offers a comprehensive one-stop solution for all my precious metals investing needs, I give it my thumbs up and #1 ranking. I will still continue to keep my holdings with BullionStar as well as continue my purchases with them.

I have written a full review about them before and I must say that I have been very pleased dealing with them so far. Continue the good work BullionStar, you are being monitored, but so far so good! Congrats! 


Full disclosure: If you enter BullionStar through my site, and you buy anything, I get a small commission.

This is my main source of blog revenue. I prefer this to asking for "donations" because I rather you get something that you want as well, instead of a tip.

Whether you buy at BullionStar directly or enter from my site, the price you pay does not change.

My personal precious metals investments are stored with BullionStar and I pay the same fees as any other regular customer.

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