+49 30 6521 24928 (GER / ENG) support@bar9.com

Gold and Silver Premium Prices Spike in Singapore and Hong Kong

JP Buntinx
April 12, 2020

Global coronavirus lockdown measures continue to impact the precious metal sector. Major Asian gold hubs struggle to get their hands on both gold and silver in physical form, with no real improvement in sight.

Physical Bullion is Hard to Come by

It was a matter of time until the supply of physical gold would begin to dry up. Despite noting a decrease in demand for physical precious metals, it is apparent that available supply is running out. All of this can be attributed to countermeasures taken due to the coronavirus crisis.

Several measures have been put in place to ensure the public health is not affected in a negative manner. Globally, all non-essential businesses have been forced to shut down. This also impacts gold and silver mines, which either reduced their output significantly, or halted operations altogether.

Major Asian gold hubs are now starting to feel the pressure. While the demand for gold and silver has decreased, coping with current demand is proving very challenging in its own regard. 

Strained supply chains are cutting off certain regions in terms of access to physical precious metals. No gold or silver will be coming out of China, as the country will keep its borders firmly closed for the foreseeable future. As long as that situation remains in place, it seems unlikely that bullion demand in China will increase again.

This is very different from the situation in Hong Kong. That country currently sees a premium for physical gold that can be as high as $1.7. In China, there is a discount of up to $20 per ounce right now. An interesting situation, yet addressing the demand for gold kilo bars in Hong Kong and Singapore becomes a very big problem as time progresses.

Silver Orders Pose Even More Challenges

For those refineries still remaining in operation – in whatever capacity possible – obtaining physical gold isn’t the only problem. Those businesses requiring a steady supply of silver are in an even bigger pickle right now. Orders can be placed with suppliers, but the shipment of physical silver is subject to plenty of hurdles along the road.

One factor making this situation even more problematic is how silver is half as dense compared to gold. Any order placed through reputable dealers is very heavy in weight, which only makes the logistical aspect even more cumbersome. As travel restrictions remain in place in most of the world, that situation will not change either.

Due to the lack of a reliable supply, silver price premiums are as high as $2 per ounce. That is quite a steep amount, as it represents nearly 15% of the current silver price per ounce. All of this seems to hint at an impending silver price increase, albeit it remains to be seen if and when that will be the case. 

Easily open your Swiss tax free gold vault in under 6 minutes

It’s Free to open a Swiss vaulting account, you can buy and sell gold directly to it instantly.

0 Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coronavirus-Infused Market Volatility is Bound to hit Australia and New Zealand

It now seems that Asian markets are recovering a bit. It is still too early to determine if the coronavirus crisis is under control in that part of the world.

Indian Officials Confiscate 9.3kg of Gold From Smugglers

What is rather interesting is how all of these bars have forged foreign markings. The objective of the individuals was to sell it in Mangaluru and districts of North Karnataka

Gold Bug Profile: Peter Schiff

Despite paying very close attention to investment options such as gold and silver, Peter Schiff isn’t optimistic about Bitcoin and other cryptocurrencies.

South Africa may Shut Down its Gold Mines due to the Coronavirus Crisis

This news coming out of Mongolia is rather surprising. Unlike other countries, it would appear that this region is still providing ample access to gold deposits.

Silver Bug Profile: Stewart Thomson

Many people keep an eye on the precious metals markets, as those segments have tremendous profit potential. Stewart Thomson can be classified as a silver bug, primarily because he expects things to head in a very promising direction.  Who is Stewart Thomson?...

Analyst Outlines how Silver is a Seriously Undervalued Asset Right now

Everything comes down to how things will evolve over the coming months. If the demand will pick up again, and the supply remains very limited, things may begin to shift in a few months from now.

Recent Actions by the Federal Reserve may Spark Demand for Gold and Silver

Such extreme measures often come at a long-term cost, however. While the measures taken allow for stock markets to rebound, it also devalues the US Dollar.

Gold Bug Profile: Ron Paul

Ron Paul has not always been a politician, however. He also serves as a flight surgeon in the US Air Force and performed duties as an obstetrician-gynecologist.

Gold and Silver Premium Prices Spike in Singapore and Hong Kong

Obtaining physical gold isn’t the only problem. Those businesses requiring a steady supply of silver are in an even bigger pickle right now

Gold Bug Profile: James Rickards

Back in 2009, he claimed that the US Dollar would face imminent hyperinflation. Moreover, the greenback was, in his opinion, vulnerable to attack by foreign governments.

Welcome To The New Bar9 Rebranding

To all Bar9 customers, I'm proud to announce the rebranding of Bar nine and a whole new informative front end. As we move into 2020 Bar9's mission is to make it easier for anyone to move in and out of physical hard assets and become a little more bank independent. The...

Silver Bug Profile: Jim Rogers

The dollar is, according to Jim, not a safe-have, and should be traded in for more stable long-term investments such as silver and gold.

Gold Bug Profile: Judy Shelton

It is interesting to note that Judy Shelton may join the Federal Reserve Board of Governors in the near future. Assuming that will be the case, some very interesting things are bound to happen in the near future.

Where is the Best Place to Buy Gold Online?

As far back as Ancient Rome, prospectors would sit aside streams swilling water in pans with the hope of glimpsing the yellow metal. Even today, you can still get your hands on gold in this way, but buying online through a broker is your best bet for a secure, cheap...

When And How To Invest In Gold

Dear Bar9 customers, unfortunately, we all live in extremely uncertain times. And the so-called "markets" in particular are also showing signs of nervousness: the price of gold, for example, goes up sharply one day, only to go down again the next. At the same time,...

Gold Bug Profile: John Paulson

It is also worth noting that the gold sector has treated Paulson rather well in his career. Back in 2010, he set a hedge fund record by making almost $5 billion in just twelve months.

Silver Bug Profile: David Morgan

Morgan prefers educating the masses on how a sound financial system would work. What we have in place as of right now is the exact opposite of a sound system

Gold vs Negative Interest Rates

The world is teetering on the brink of a new economic policy. Not one that was written about by capitalism's founding father Adam Smith, or even John Maynard Keynes, but a giant experiment in which we will all be the subject. Negative interest rates threaten to turn...

Best Practices When Using Mobile Payments During the Novel Coronavirus Outbreak

Solutions such as Apple Pay, Google Pay, Samsung Pay, and WeChat Pay are all perfectly usable during these troubling times.

Silver Bug Profile: Nathan Eric Fier

Many individuals have shown their love for gold, silver, and other precious metals over the years. Nathan Eric Fier is certainly a silver bug, although he pays close attention to gold as well. Who is Nathan Eric Fier? People with a link to the financial industry will...

Translate Blog Post

Article Categories

Blog Stats

  • 59,157 hits

Follow the CEO on Twitter

%d bloggers like this: