Top

GOLD - An Important Anchor in any Diversified Portfolio

Christophe Numa

Director

Bunker Gold & Silver

Click on the individual questions below to jump to that section.


Read the transcript here

  • 1. How do clients buy physical gold and where is the best place to store it?

    Where you buy gold is really important. This is really important from an investment-wise perspective. Why I'm saying that it's because, today, you have many options for buying gold. You can buy it at banks, you can buy it with bullion dealers, you can even buy it in the street. But if you are thinking from the perspective of investment, you have some steps to respect. The first step is to buy from LBMA-certified refineries. And this is what we are doing. We are selling only to our clients LBMA-certified refineries' gold bars, silver bars and platinum bars. But another thing, it's about knowing where the is bar coming from. When I'm saying that I'm not just talking about the brand LBMA from LBMA refineries, I'm also talking about the fact that you can have a lot of intermediaries before getting the bars. To avoid this problem, we create a direct link between the refineries, LBMA-certified refineries, and the customer. So, in that way you are sure that you can buy your gold and sell it after on the international market. This is really important. when you buy your gold and you want to sell it after, you have to consider these steps: what is the origin of the gold, and actually if you will be able to sell it, the liquidity of this gold. After that, you also have to take something else into consideration, which is storage. Why? Because depending on where you are storing your gold, as you could also have a better return on investment. And I'm saying that because some vaults in the world are certified in order to store the gold, the LBMA gold. We call it ‘chain of integrity’, meaning that this vault, this secure logistics company, which are members of four, like Malca-Amit or Brink's or Loomis, which are the only one who are certified to keep your gold and be able to sell it back on the international market. So, this is really important. And the last thing it will be the location. Of course, you can store it in Switzerland, you can store it in Hong Kong, you can store it in Singapore; right now, I will say that the best place to store it is in Singapore.

  • 2. Why is Singapore a great place to store gold?

    Singapore is the best place to store gold for many reasons, but obviously the first one will be for tax reasons. You don't pay tax, any VAT, any capital gain tax, in Singapore when you buy and sell gold. After that, it's about the safety of the country, [making sure] the country is top ranking in the non-corrupted countries. So, this is really important for us. And also, the security in general. Singapore is a really safe country here, and it's a big hub in the region. You have people from China, you have people from India, you have people from Hong Kong, from Malaysia, from Indonesia investing here in Singapore, because this is the safest place in the region. And another thing is that in Singapore, right now, you have one of the most secure places in the world to store your gold. We call it Le Freeport. We are in Le Freeport actually. It's really the most impressive location and the most secure location to store your gold. So, this is the right place and the best place in Asia to store your gold, for sure.

  • 3. When clients want to sell their gold - how do they do that?

    The process of sell gold is really simple. Gold is liquid, but obviously you have some steps to follow if you want to sell it in an effective way. The first thing, if [you ensure] that your gold will stay in the chain of integrity, so in a certified vault, and that we know where the gold is coming from, you will not have any problems about the liquidity. This is a really important step because it will also determine what price you will get by selling your gold. So, where this gold is located and where is it stored are really important [when you want] to sell your gold.