In a world of volatile markets and economic uncertainty, investors are increasingly turning to bullion investing as a time-tested strategy to preserve wealth and diversify portfolios. Bullion refers to precious metals, primarily gold and silver, but also platinum and palladium that are bought in the form of bars, coins, or ingots. Unlike paper assets or digital currencies, bullion offers a tangible, finite resource that holds intrinsic value across civilisations and centuries.
What is Bullion?
Bullion is a bulk quantity of precious metal measured by weight and typically valued by purity and content rather than form. The most common forms include:
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Gold bullion – Widely considered a safe haven asset, especially during inflation and currency devaluation.
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Silver bullion – Offers both investment potential and industrial utility, making it more volatile but also more accessible.
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Platinum & Palladium bullion – Rarer metals with strong ties to industrial demand, especially in automotive and tech sectors.
Why Invest in Bullion?
Bullion vs Jewellery
While many people, especially in Asia, buy gold jewellery as a safekeep for rainy days, bullion is seen as the better form of precious metal investment due to the high margin for the former. Jewellery is also bought more by women as compared to men, due to its wearability and social acceptance. Bullion, on the other hand, is gender-neutral and can be bought by everyone. DUe to its regular sizes, storage is also easier for bullion as compared to jewellery where intricacies in its designs can be a good consideration for storage.
Wealthy investors keep their bullion in vaults that are available all over the world. Below are 4 reasons why people invest in bullion.
1. Hedge Against Inflation and Currency Risk
Precious metals, particularly gold, have historically maintained purchasing power. When fiat currencies weaken due to inflation, geopolitical turmoil, or reckless monetary policy, bullion tends to retain or even gain value.
2. Wealth Preservation
Bullion is not tied to any single economy or banking system. This independence makes it a preferred store of value in times of economic collapse or financial crisis.
3. Portfolio Diversification
Including bullion in an investment portfolio adds a layer of non-correlation with traditional assets like stocks and bonds. This can reduce overall risk and improve long-term stability.
4. Liquidity
Gold and silver are universally recognised and easily convertible to cash anywhere in the world. This makes bullion a highly liquid asset, especially in its standard forms like 1 oz coins and 1 kg bars.
3 Types of Bullion Investments Available
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Physical Bullion
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Coins (e.g., American Eagle, Canadian Maple Leaf, Krugerrand)
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Bars and Ingots (typically from refiners like PAMP, Valcambi, or Perth Mint)
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Pros: Full ownership, no counterparty risk
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Cons: Requires storage and insurance, not always practical for large sums
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Bullion-Backed Securities
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ETFs (Exchange-Traded Funds) like SPDR Gold Shares (GLD)
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Allocated accounts at precious metals custodians
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Pros: Easy to buy/sell, no need for physical handling
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Cons: Subject to counterparty and systemic risk
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Mining Stocks and Mutual Funds
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Investing in companies that mine precious metals
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Pros: Potential for leveraged gains
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Cons: Higher volatility, tied to company performance rather than metal price alone
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5 Best Countries to Invest in Bullion
When investing in bullion, where you buy and store it matters. Here are the top countries known for favourable conditions:
1. Singapore – Top Global Bullion Hub
Being one of the top financial hubs in the world, Singapore has an attractive landscape for business and investments and a diverse variety of financial options for investors to choose from.
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No GST (Goods & Services Tax) on investment-grade precious metals. Since October 2012, Singapore exempts investment-grade bullion – gold (≥ 99.5% purity), silver (≥ 99.9%), platinum/palladium (≥ 99%) from GST. Only LBMA/LPPM‑approved bars or legal tender coins qualify. This zero‑GST status applies both to imported and domestically supplied bullion.
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World-class and premier vaulting facilities such as The Reserve and other high-security vaults near Changi Airport provide safe, climate-controlled storage, appealing to both retail and institutional bullion holders.
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Strong political stability, economic freedom, and rule of law. The Monetary Authority of Singapore (MAS), as Singapore’s financial regulator, oversees the broader stability and supports market trust, including bullion services offered by banks and institutions.
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Strict business regulations and security, precious stones and metals dealers must register and comply with AML/CFT/CPF reporting, monitor high-value cash transactions of more than SGD 20,000, and maintain records for five years. This ensures a credible and transparent bullion market.
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Approved Refiners & Industry Cluster: Global refiners like Metalor and endorsed consolidators benefit from Singapore’s Approved Refiner & Consolidator Scheme (ARCS), which streamlines GST compliance on raw materials destined for IPM production
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No capital gains tax, inheritance tax, or wealth tax. Profits from bullion sales are tax-free for both residents and non‑residents (except when trading activity qualifies as a business).
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Zero Duties on Import or Export: Singapore imposes no customs duties on bullion. This makes importing or re‑exporting investment-grade metals seamless and cost-efficient.
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Positioned as a neutral, geopolitically safe jurisdiction.
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Popular among high-net-worth individuals, Islamic investors, and gold vaulting institutions globally.
Singapore’s gold storage and investment ecosystem is among the most advanced in the world. It’s the only Asian country consistently ranked in the top 5 for gold investor confidence, and it has Shariah-compliant gold investment platforms for Muslim investors.
2. Switzerland
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Historic safe haven for wealth storage.
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Home to major bullion refiners and vaults (e.g., Valcambi, Metalor).
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Strong banking secrecy and neutrality.
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Higher costs and tighter regulations in recent years.
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Usually seen as the banking capital for the ultra rich
3. Canada
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Well-regulated and investor-friendly.
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Minter of popular coins like the Canadian Maple Leaf.
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Physical bullion can be stored in secure facilities with relatively low tax exposure.
4. Australia
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Home to Perth Mint, one of the world’s leading government mints.
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Transparent regulatory framework.
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GST applies to some precious metals unless specifically exempted.
5. United Arab Emirates (Dubai)
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No taxes on gold and precious metals.
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Dubai Gold Souk and DMCC make it a regional bullion trading hub.
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Less transparent regulatory and legal protections compared to Singapore.
Why Bullion Fits So Naturally in Singapore
Apart from the reasons mentioned above, Singapore’s financial ecosystem deserves praise for being fully adaptable to current market changes and updates, such as adopting bullion and cryptocurrency in its purview. This ensures a safe, regulated, and risk assessment environment for both retail and private investors alike.
Singapore’s Financial Services Ecosystem & Market Innovation
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Integrated Financial Ecosystem: Singapore’s status as a global wealth management hub means investors can easily access bullion trading accounts, secure loans backed by bullion, and integration with wealth strategies alongside other asset classes.
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Emerging Physical Gold Futures Market: Abaxx Exchange is launching Asia’s first physical gold futures contract deliverable in Singapore. Backed by major investors like BlackRock, this development positions Singapore to rival London and New York as a bullion trading hub.
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Central Bank Accumulation of Gold: MAS itself has increased its gold holdings significantly, buying around 75 tonnes in the first nine months of 2023—making Singapore the third-largest central bank gold buyer globally during that period. This reflects a strategic confidence in gold as part of national reserve management.
Risks and Considerations For Bullion Investing
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Storage and Security: Physical bullion must be stored securely either at home (in a safe) or with a trusted vaulting service. This may incur additional costs.
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Premiums and Fees: Bullion often carries a premium over the spot price, especially in coin form. Ensure that buying/selling costs are reasonable.
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Market Volatility: While generally stable, precious metal prices can still fluctuate based on market sentiment, industrial demand, and central bank actions.
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Liquidity Limitations: While bullion is generally liquid, offloading large quantities quickly or in crisis periods might be challenging.
Note that this article is in no way financial advice or be taken as such. This article is only for informational purposes and all finance-related activities should be done with a licensed financial agent for proper advice.
Bullion as Part of a Holistic Wealth Strategy
Smart investors don’t see bullion as a “get-rich-quick” investment but rather a strategic hedge and long-term asset. Allocating 5 to 15% of one’s portfolio in precious metals can safeguard against financial shocks and protect generational wealth. It’s especially relevant for those with an eye on wealth preservation, estate planning, and intergenerational trust structures.
Investing in Bullion in Singapore for Foreign Investors
Bullion investing offers more than just a shield against inflation, it provides a sense of financial sovereignty. As economies evolve and digital currencies rise, the tangible, enduring value of gold and silver continues to ground investors in stability. Among the many countries offering bullion opportunities, Singapore stands out as the safest, most efficient, and future-ready jurisdiction for precious metals investment. Whether you’re a seasoned investor or a beginner seeking security in turbulent times, bullion deserves a seat at your financial table.
