Saturday, November 29, 2014

Gold and Silver Blind Test: Who is the cheapest dealer in Singapore? (Part 2)

The price of precious metals were hit quit hard on Friday, with Silver getting smashed down. With the year coming to an end, it also means that my bonus is coming! I am now finally almost ready to collect and keep physical bullion with me on hand at home (as opposed to my current holdings which are safely being stored in a vault). That is why I am now checking up on the dealers in Singapore to take a look at their prices.

Back in August, I did a blind test 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. Goldprice no longer quotes prices on weekends I think, while Gold Online has disappeared.

I don't even bother with Ebay, the premiums are high and once you include the shipping costs, it's insane. That goes pretty much with most of the other big online retailers you see online. They are big and trustable no doubt, but their premiums are high.


So, here are the reference gold and silver spot prices that I have used to calculate the "premium over spot", 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 is now consistently the cheapest dealers, with GoldSilverCentral always trailing behind in almost every weight. 1 Silver 1 and SilverBullion are not very attractively priced. Perhaps they are better Silver dealers, hence the names? We shall see now!


Now turning to Silver, the first thing that you might probably see is again BullionStar tops the chart by being the cheapest Silver dealer! SilverAG is actually pretty competitive, but BullionStar is still significantly cheaper. More than 100bps is a big deal to me.

1 Silver 1 is actually really badly priced, but SilverBullion is not much worse as well. For being Silver dealers, I don't see them being very competitive at all.

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.

I must say I am very happy with the results.

BullionStar is the cheapest dealer for both Gold and Silver. Since the last review that I did, they must have done their own market research and have since significantly priced their products more competitively. I am very very pleased with how they have improved their pricing structure, as well as increasing transparency by releasing their audit and insurance information.

Since it really offers a comprehensive one-stop solution for all my precious metals investing needs, I still give it my two 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 happy with them as my precious metals dealer 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.

5 comments:

  1. Please do a buy back price comparison to be fair to all dealers.

    ReplyDelete
    Replies
    1. Hi Anon,

      Good suggestion. I will do a post tomorrow with my findings.

      Delete
    2. Anyway Anon,

      I have done a comparison for buybacks.

      The companies are all quite random with different products, but BullionStar is the only company that will buyback all gold and silver, regardless of grade and if bought from them. Given that their policy is so flexible and they generally offers better prices, I would still go with BullionStar.

      Delete
  2. No comparison vs uob price?

    ReplyDelete
    Replies
    1. Hi Anon,

      Don't need to compare. UOB doesn't not sell physical bullion. They sell certificates aka. pieces of paper.

      They also have ridiculous pricing and "monthly service charge".

      Delete

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