Our office/depository typically holds around 200-300 ounces (the rest being in The Safe House) of company owned IPM bullion, which is available for immediate purchase and pickup in Johor and Kuala Lumpur . You can also sell IPM bullion (regardless if they were purchased from us or not) at this location or have your bullion tested.
What is IPM?
"IPM" stands for "Investment Precious Metals" and is the term used to denote what is tax free bullion. With effect from the implementation of GST effective 1st April 2015, local supply of IPM in Malaysia is exempted from GST as specified under item 4, GST (Exempt Supply) Order 2014 to facilitate trading of IPM in Malaysia and in line with the recognition of IPM as an actively traded financial asset.
There is no refiner from Malaysia that is listed in the current “Good Delivery” list of the London Bullion Market Association (hereinafter referred to as “LBMA”) or London Platinum and Palladium Market (hereinafter referred to as “LPPM”). In addition, there is no government agency in Malaysia to endorse the refiners and ensure local IPM possess requisite quality to be traded on international bullion markets and accepted by international commodity exchanges. Hence, the main source of IPM is through importation
Only precious metals which meet the prescribed criteria as specified under item 4, GST (Exempt Supply) Order 2014, will qualify as IPM. The prescribed criteria for IPM are stated below:
Criteria of IPM:
IPM must meet the following prescribed criteria as specified under item 4, GST (Exempt Supply) Order 2014, in order to qualify for GST exemption:
a) gold is of a purity of at least 99.5%, silver is of a purity of at least 99.9%, or platinum is of a purity of at least 99%;
b) is in the form of a bar, an ingot or a wafer;
c) possess investment characteristics.
Investment characteristics is defined under subitem 4(3), First Schedule, GST (Exempt Supply) Order 2014, as following:
a) it has been refined by a refiner who is or was in the “Good Delivery” list of the LBMA (in the case of gold or silver); or a refiner who is or was in the “Good Delivery” list of the LPPM (in the case of platinum)
b) it bears a mark or characteristic that is accepted as an international standard guaranteeing its quality and
c) it is traded at a price based on the spot price of gold, silver or platinum on the international bullion market.
d) IPM coins is exempted from GST, provided the gold coin is of a purity of at least 99.5%, silver coin is of purity of at least 99.9% or platinum coin is of purity of at least 99%; and it is or was legal tender in its country of origin.
Precious metals which do not meet the prescribed criteria does not qualify as IPM (hereinafter referred to as “non-IPM”). The supply of non-IPM is subject to GST at a standard rate. Examples of non-IPM are jewellery, scrap precious metals, precious metals which are refined by refiners who are not on the “Good Delivery” list of the LBMA or the LPPM, proof coins, numismatic coins and collector’s coins.
These investment coins are classified as Investment Precious Metals (IPM) and are GST exempt:
1 American Buffalo
2 Australian Kangaroo Nugget
3 Australian Lunar Series
4 Austrian Philharmonics
5 Canadian Maple Leaf
6 Chinese Panda
7 Malaysian Kijang Emas
8 Mexico Libertad
9 Singapore Lion
10 United Kingdom Britannia
1 American Eagle
2 Australian Kookaburra
3 Australian Koala
4 Australian Lunar Series
5 Austrian Philharmonics
6 Canadian Maple Leaf
7 Chinese Panda
8 Mexico Libertad
9 United Kingdom Britannia
1. American Eagle
2. Australian Koala
3. Australian Platypus
4. Canadian Maple Leaf
All the bars we sell are tax free. IPM (investment precious metals) status and tax exemptions for bars are determined according to the refiner (producer) of the bars as follows:
1 For gold and silver, a refiner included in the current or former Good Delivery list of the London Bullion Market Association (LBMA)
2 For platinum, a refiner included in the current or former Good Delivery list of the London Platinum & Palladium Market (LPPM)
For example, the popular 100 oz Johnson Matthey silver bars are tax exempt as they fulfill all basic qualifying criteria and Johnson Matthey is a refiner in the LBMA list.
Credit Suisse branded gold bars are also tax exempt as they fulfill the basic qualifying criteria and are refined by "Valcambi SA" which uses the logo "Essayeur Fondeur" - see mark on bar - and is a refiner on the LBMA list.
We have committed substantial resources in building a web-based service to facilitate the most efficient trading platform to buy silver, gold and platinum bullion in Malaysia.
We can be contacted by phone for clarifications and support but all orders need to be locked in (submitted) through our website. Phone orders are substantially more expensive to support and are not yet an option with our current service structure.
Mail orders are not accepted due to the constantly fluctuating market prices and the local post office is not delivering bullion. At such, please order from our website and we will process your orders as we receive them.
See the section on Price Confirmations and Binding Agreement on how to purchase bullion from us.
Your order can be priced in either Malaysian Ringgit or US dollars. This is useful to avoid currency exchange charges.
The silver spot price “is the instantaneous price someone is willing to pay in cash for a unit of silver”. Usually the unit refers to one troy ounce (31.1 grams) and it is normally priced in US dollars.
It is determined in a few major worldwide commodity exchanges around the world during local business hours. Major exchanges are in London, New York and Hong Kong. As exchanges worldwide open, we update our selling prices in short intervals to follow market prices. As bullion margins are very low compared to traditional jewelry outlets we need to keep prices as updated as possible.
Furthermore as we operate in Malaysia with the functional currency being Malaysian Ringgit, we price our items in Malaysian Ringgit and we convert US dollar silver spot prices into Malaysian Ringgit prices based on the current exchange rate. Therefore our prices will change when either the spot prices change or the USD/MYR forex rate changes.
Please note, for large orders, we can transact based on the LBMA morning price for a given date.
When silver market exchanges such as Comex are closed, the price of silver is not updated as no trades are executed. Exchanges will be closed on from Friday afternoon onward (through the weekend) until Monday morning, and during certain holidays.
Physical bullion always has a premium covers over spot price to cover:
• Manufacturing and assay costs to strike and certify bullion coins or bars
• Insured transport and storage costs
• Possible taxes (As of 1 April 2015 Malaysia has removed GST on import or sale of bullion)
• Capital costs which are very high as the industry is strictly based on prepayments
None of these costs apply to pure paper silver derivatives as they represent a price exposure to the spot price with no practical means to convert to physical bullion. Hence physical bullion and paper derivatives of silver are two very different products as the former can be quickly issued in nearly unlimited amounts and is settled in currency whereas the later represents a finite physical commodity.
The exact ratio between physical positions and paper positions is not known exactly and it can be defined in various ways. The practice to lease silver out, which would normally be counted as reserves, further complicates obtaining an accurate number. However based on the Comex futures exchange, this ratio is around 5%. Studies by the CPM Group assume a 1% ratio when other forms of silver derivatives are included. It is therefore a safe assumption that there are somewhere between 10 and 100 paper derivative claims for every ounce of physical silver.
In this context the simplicity and lack of counterparty risk of fully owning physical bullion over the long term lends itself very well as a protection against inflation, a currency crisis and is likely to appreciate as confidence wanes in financial institutions and complex derivatives. However it’s higher transaction costs make it ill suited for frequent trading when compared to paper silver derivatives.
On a side note, silver in the form of jewelry commands premiums of 800% + over spot prices. This is very high compared to bullion prices which, in the case of coins – such as Perth Mint coins - can also be of very high quality and finishing.
We offer competitive discounts through our Discount Tiers.
When comparing prices with other online bullion dealers outside of Malaysia, check whether they will ship internationally. Many bullion dealers in the U.S.A. do not ship internationally due to insurance and customs regulations that differ for every country.
Next, check if your order is fully insured. Insurance is a large component of the shipping cost and normally requires a third party insurance as courier services (including FedEx and UPS) will insure only a small portion of the order. Without insurance, should the order be lost in transit, it would be very difficult to make a claim in the country of origin.
If a dealer does ship internationally you would need to add the following costs to your order:
• Shipping and insurance Courier services will charge a shipping fee for delivery but will not insure high value goods such as Silver Bullion. Third Party insurance will normally represents an additional 2% to 3 % of shipment value for Silver (Gold is below 1%).
• GST (tax) depending on jurisdiction, the shipper, not the seller, (eg: FedEx) will pay customs duty (if applicable) of the shipment value on your behalf to get the silver cleared through customs. You will receive a invoice from the shipper for the GST plus a service fee for forwarding the money.
• Other fees, such as currency conversion fees from MYR to USD and wire transfer fees normally add another 1 percent or more as the bank will normally give you an exchange rate significantly below spot market rates.
• Prepayment Risk. Unlike our COD option which allows you to take delivery at the moment you pay, you almost always have to prepay, and ultimately carry a failed delivery risk, when ordering from abroad.
The total cost of the above is what you actually buy silver at. Please consider this in order to make a fair price comparison. Prices on the Silver Bullion website already include all of the above and we publish silver inventory that is in stock here in Malaysia.
No. As of 1 April 2015 Malaysia has removed GST on import or sale of bullion that is classified as Malaysia Investment Precious Metals (IPM). Accordingly, we now carry only IPM bullion. All the bullion we sell are GST free. When you make an order through Silver Bullion Sdn Bhd, we will issue you an invoice stating that you did not pay any GST.
Prices will continue to change until you lock in a price by clicking on the button 'Submit Order' on the summary page. Please refer to our Policies page for more details about price confirmation and the ordering process.
Discount tiers are volume discounts, with a twist. The twist is that we combined the boz (bullion ounce count) of your past purchases to your current order to determine your discounted Tier price.
• Add items to the shopping cart, as the shopping cart reaches a discount tier threshold (for eg: 1,500 boz) the appropriate discounts will automatically be applied.
• Log onto the system to have your accumulate boz count combined together with the boz of the items in your shoppping cart as below
The Discount Tier Thresholds:
The system assigns a discount tier based on the ounces (boz) in the shopping cart and the past order [requires login] ounces (boz) according to the following tables:
Each Purchased oz Counts as:
1 Silver oz = 1 boz
1 Gold oz = 10 boz
1 Platinum oz = 10 boz
To Determine Your Tier:
Tier 1 - 0 to 1499 boz
Tier 2 - 1500 to 2999 boz
Tier 3 - 3000 to 4999 boz
Tier 4 - 5000 to 9999 boz
Tier 5 - 10000 to ++
A traditional volume discount applies to a single product type in a single transaction, hence only large orders enjoy volume discounts. Silver Bullion's accumulated bullion discount applies across product types across your transactions. This is true regardless of order type, so you can keep accumulating boz regardless if you are storing through S.T.A.R. Storage or buying and taking delivery of your bullion.
Yes. Your boz do not expire, we offer discount as long as you keep using the same account to submit orders.
The orders must have a process status of "Waiting for Payment'", "Payment Received" or "Completed".
As per our own policy, gold is equivalent to 10 boz per ounce that is purchased. For example, two ounces of gold is equivalent to 20 boz.
For a given purchase and due to the current price ratio of silver to gold, silver will result in more boz, which reflects our focus on silver. This means you go up the tier faster if you first order silver and reach the higher tiers.
After you log into the website click on "Order History" within the "Discount Tier" box on the right column of the webpage. Your detailed order information will be listed, including your bullion ounces and order status.
I have a 300 boz balance from past orders. I am now making a 1200 oz order. A 1500 boz balance qualifies for a discount. Would I receive the discount on this 1,200 oz order?
Yes. As soon as items are added to the shopping cart, the additional ounces are counted towards the boz balance. Prices are automatically adjusted and discounts applied. Please note that discounts do not apply to past orders (ie: there is no retroactive discount applied to your past 300 oz order)
We currently do not ship bullion by freight forwarder outside of Malaysia. The primary reason is that it is very difficult to obtain a shipping insurance on silver bullion shipments in Southeast Asia. We do not want to have a situation where a silver shipment might disappear en route without adequate insurance and control checks in place.
The short answer is insurance. Any shipping without full insurance is too much of a risk for us and our customers.
We have seen cases where eBay sellers use DHL to ship bullion internationally, however if you read the DHL shipping policies you will see that DHL does not allow shipment of any form of bullion, nor insure it. We are assuming that such shipment can only be made by misrepresenting the shipped content. The risk of such an approach is that the buyer (you) carries all the risk as the buyer will already have made a full payment and in case of shipment loss, DHL will refund only a very small fixed amount.
We can ship internationally within Southeast Asia. Do take note that there will be possible import duties involved, depending on the country where you wish to receive your bullion.
Yes. You can lock in a price and make a purchase from anywhere.
If you choose to do this, we require full payment to be initiated within one business day of placing your order. We will hold the physical bullion for you until you pick it up. Please note that we require a pickup in Malaysia within two months of the order.
Silver Bullion Sdn Bhd is always interested to buy investment grade (.999 or higher) silver or gold bullion. We buy the type of major brand bullion we stock in inventory regardless of provenance at very competitive rates and pay a substantial premium if the specific bullion was originally bought from us (the “From Client” price). Client Prices are always at spot and higher.
For bullion of the same type we sell, but not bought from us, we offer to purchase at "Non-client price" which can be below spot but is still much higher than most gold or silver "buyback programs".
Please note that we only buy back investment grade bullion items types we carry / have carried (for example we buy Perth Mint bars or American Silver Eagle coins). One of the reasons is that we have agreements with our suppliers / mints to support a liquid two way market so that we can absorb large (millions of dollars, be it USD or MYR ) buybacks if needed.
• If you have an invoice from us or we can retrieve your original order information we will buyback at the higher ‘Client Rate'.
• Buyback and price lock-in has to occur physically in our office during operating hours and/ with our representative unless fully insured shipping can be arranged.
The step by step process:
1. Buyback occurs in our Silver Bullion office at Kuala Lumpur or Johor Bahru (by appointment as confirmed via e-mail).
2. A photocopy of your identification card (IC) or passport and contact information is required. If available also bring the original invoice for the bullion.
3. Price lock in, whether client or non-client, will occur at the time when the bullion is brought to Silver Bullion office.
4. If you agree to the sell based on the price locked in, we will perform an instant transfer to your account.
Please read our policies and procedures, under the section for Buybacks.
You can lock-in a price and submit a sell back request online 24/7 through your S.T.A.R. Storage interface.
1. Log in
2. Click on 'STORAGE'
3. Select parcels to sell and tick the checkbox next to the parcel numbers
4. Specify other details such as currency
5. Click on 'Submit Request'.
This interface lists each parcel code you own, the content, each parcel’s respective storage balances as well as your purchase price and the invoice you bought the parcel with. Each parcel also list our current buyback offer which is the Client Private Buyback price listed in the discount tier box. You can sell back any combinations of parcels. See Order Policies for details.
If you have multiple parcels bought at different price points consider selling back the parcels you bought at a higher price and keep the parcels that have the lower purchase price. This optimizes potential import taxes should you wish to take delivery of your remaining parcels into Singapore (or another country having import duties) as import taxes are based on your parcel purchase price.
Our goal is to maximize investment grade, silver bullion holdings. This happens when we make a direct purchase from you which is typically a rate below acquisition prices. This makes the buyback option attractive to us.
For more information, please read clause 9.5 under the Buyback option section.
For sellback from customers, the payment will normally be credited to your account within two business days. For larger volumes, we can execute the transfer within a few business days.
There is a saying in the precious metals industry: “If you cannot touch it you do not really own it”. Paper silver is any derivative of physical silver bullion. In most cases these derivatives are secured through other derivatives which in turn are backed by only a tiny fraction in physical bullion reserves. Normally, there is no practical way to convert the paper silver to physical bullion. This means that you do not own the bullion, you only purchase price exposure.
The lack of physical backing means that it is possible to create nearly unlimited amounts of paper silver at virtually no cost. Furthermore, only a small fraction of deposited money is needed by the issuing institution to hedge their position through other financial instruments such as Comex futures contracts.
Hence these paper silver products can be very profitable for the issuer even with low buy / sell spreads as there is almost no cost involved in creating paper silver positions. As a consequence at the Comex futures exchange – which is often used to back silver derivatives and the guarantor of last resort – the ratio of physical silver reserves to paper positions is well below 10%. So there are at least 10 claims on the same silver and this ratio is likely to shrink further as more silver derivatives are opened.
Physical silver bullion means that you take possession of the actual metal and you own 100% of the bullion (measured in troy ounces).
Many of our customers purchase physical bullion as a long term means to profit from the ongoing decline of confidence in the US dollar, given the vast amounts of debt that was accumulated over the last 30 years and the more recent explosion of currency (base money, or euphemistically called "quantitative easing") across the world.
Given this context the demand for physical bullion comes from the simple fact that physical bullion, unlike bullion derivatives, cannot be created out of thin air. By owning the actual metal you can make sure that there are no multiple parties with claims on the same bullion and your position cannot be frozen or closed as it could with a financial derivative.
To actively trade on silver, a paper silver derivative that obtains price exposure will likely be a better choice as transaction costs are lower and there is no GST (tax) involved.
On the other hand, for a solid long term protection against currency crises, high inflation and a potential systemic financial collapse, the simplicity and 100% ownership of physical bullion are compelling arguments.
We still have to break the seal of the parcel and authenticate the bullion, by means of weighing and visual inspection, and if we decide to with the X-Ray analyzer and ultrasound device, as per our policy.
Yes you can, we can also wire funds in USD. Our base currencies are Malaysian Ringgit and US Dollars. However, we can purchase other currencies and wire your funds in other currencies. The S.T.A.R. Storage interface allows you to lock in a sell price in either MYR or USD. Should you require funds in a different currency other than both USD and MYR, please request a MYR sell back and write into the comment box the currency you require. Please take note that all wires can go only to your linked bank account and some currencies might be controlled currencies.
Due to its transaction volume, Silver Bullion Sdn Bhd receives a much better exchange rate (around 0.5% depending on amount and currency) compared to retail bank exchange spreads (which often are around 1.5%) S.T.A.R. Storage customers can take advantage of this.