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Investing in silver in 2014: Amid frenzied demand to buy and store silver, a Singapore retail supplier of coins and bars opened a new 600-metric-ton vault on Monday.
The sizable Silver Bullion Pte. Ltd. storage facility can hold some $390 million worth of silver (at Friday's prices of $20.33 per ounce). Known as The Safe House, the new facility is located west of Changi International Airport. At present, it keeps some 37 tons of silver, mostly for its retail clients, behind a secure 2.5-ton stainless door.
Founded in 2009 to offer a cost-effective and reliable avenue to buy, sell, and store physical grade (.999) silver bullion in Southeast Asia, the company doubled sales to 1.04 million ounces in 2013 from 517,000 ounces a year earlier.
Successful in serving retail clients, Silver Bullion Pte. Ltd. is mulling expanding services to financial global institutions. The company already has a notable international presence. Americans are among the most active of its customers who are investing in silver today.
"While prices dropped last year, we saw physical demand went through the roof," Gregor Gregersen, founder and director of Silver Bullion Pte. Ltd., told Bloomberg. "Our American customers seem to be concerned about rising government debt in their country and see silver as a form of insurance."
Second Sizable Singapore Silver Vault in Less Than a Year
Hong Kong-headquartered Malca-Amit Global Ltd started a 200-ton silver vault in Singapore in July 2013. Opened to cater to the increasing demand for physical metals among Asia's wealthy, the facility was 30% booked at the open.
In little more than six months, the storage was filled to capacity. That has prompted the precious metals and diamond company to consider adding a seventh vault to its holdings amid insatiable demand and Singapore's soaring precious metals stature.
Singapore's government has been promoting the country as a bustling bullion-trading hub. In 2012, the government lifted a 7% sales tax on investment-grade precious metals. The move is aimed at boosting Singapore's global bullion trade seven-fold.
The Asian city is already the fastest-growing wealth center in the world, with more than $550 billion in assets under management, according to research firm WealthInsight.
A New Way of Investing in Silver in 2014
The opening of Silver Bullion Pte.'s new warehouse and Malca-Amit's full facility underscores a notable shift in the way people want to own and invest in silver.