I'm amazed to see that, Silver Bullion Singapore is currently Out of Stock of all their silver coin products and the Pre Orders is between 5-7 weeks. The demand for physical is remarkable! While the Silver Coin American Eagle 2013- 1 oz is not only out of stock but also no pre order is available, you can still acquire the Silver Coin Canadian Maple Leaf 2013 - 1 oz but seeing as it is currently out of stock, there is a 7 weeks wait after you make the pre order. To give some perspective regarding the price:
The silver spot price (last updated on their site: 28 April 2013 7:00) is USD23.96 (or SGD29.70). For a quantity of 1 or more (but not exceeding 500), the current price quoted is USD29.73 (or SGD36.85). That is a premium of USD5.77 (or SGD7.15) over spot (or 24% premium). Wow!!
The alternative is to trade or invest in silver through the UOB silver passbook account. This obviously has counter party risk but works well for someone who has confidence in UOB bank and would like to take advantage of cost saving and convenience (no need to worry about transportation, storage and theft of owning physical). Note that there is a minimum transaction limit of 10 ounces. To give you a perspective regarding pricing:
The current price quoted for 1 oz of silver at UOB purchased through silver passbook account (price last updated 27 April 2013) is SGD30.50. That is a relatively tiny spread of just SGD0.80! vs SGD7.15 for the physical!
Another way to look at it is, when you buy physical, the spot price needs to go up by a remarkable 24% before you break even. Really!?
Some may say, if you don't hold it (the physical), you don't own it and hence are adamant in accumulating the actual physical metal. Fair enough. If you are in this camp, how about acquiring the Silver Bullion Bars as oppose to the coins. The premium is approximately USD3.62 (or about 15%) over the spot price. Silver Bullion in Singapore seem to currently have available the Perth Mint Silver- 1 kg and the Johnson Matthey Silver Bar- 100 oz, both of which are Out of Stock but you can lock in the current prices and arrange for pre orders.
To visit Silver Bullion Singapore website; www.silverbullion.com.sg
See Bloomberg article [Silver Slump Lures Buyers as Waiting Time Rises in Singapore; by Chanyaporn Chanjaroen- Apr 29, 2013]
http://www.bloomberg.com/news/2013-04-29/silver-slump-seen-luring-buyers-as-wait-time-rises-in-singapore.html
To open a silversavings passbook www.uob.com.sg/personal/deposits/savings/precious_metal.html
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