Questions to ask a bullion dealer before you buy

Is the dealer registered with the Ministry of Law?

Start here. Under the Precious Stones and Precious Metals (Prevention of Money Laundering) Act 2019, usually called the PSPM Act, dealers in Singapore register with the Ministry of Law. A registered dealer has duties around customer checks and record-keeping, and a regulator it answers to.

Ask for the registration number, or look for it on the dealer's website. Ours is PS20260001016. It's on our About page and in the footer of bullionking.sg. If a seller goes vague when you ask, or changes the subject, you have your answer.

Bear in mind that registration is a baseline. It tells you the business is on the books, not that it treats customers well. The rest of this list helps with that part.

How do you check that what you sell is genuine?

Every dealer will tell you their stock is real. The better question is how they know. Someone who tests properly can name the tests without hesitating, and will usually show you if you ask.

At Bullion King, every piece is tested before it is sold. We use a PMV (Precious Metal Verifier), which checks how the metal responds electrically against what genuine gold or silver should show, and XRF testing, which reads the metal's composition at the surface. PAMP bars get a Veriscan check as well, which compares the bar's surface against PAMP's own records.

Ask which refiners and mints they carry, too. Bars from well-known names are widely recognised, which makes life simpler when the time comes to sell. We stock PAMP, Argor-Heraeus, Perth Mint, Royal Canadian Mint, Metalor, Heraeus, JBR, Valcambi and Nadir Metal Rafineri.

How is the price made up, and where is the premium shown?

Bullion is priced off the world spot price, plus a premium. The premium pays for making the bar, getting it here, testing it and keeping the shop open. Nothing odd about that. What matters is whether the dealer shows you the premium, or just quotes one number and leaves you guessing.

Ask how often prices update and what happens when the market shuts. Ours follow live world spot through the day, and the premium is shown openly on every product page. At weekends, when the world market is closed, we sell at the last closing price. Live prices and charts are at bullionking.sg/market.

When you compare, compare like with like. Small bars carry a bigger premium per gram than large ones, since the cost of making and handling a 1 g bar isn't much less than a 100 g one. Coins are priced differently from bars again.

Will you buy it back, and how do you set the price?

You may have no plans to sell for years. Still, find out how it would work. Ask whether the dealer buys back, whether that includes pieces bought elsewhere, and how they arrive at the amount.

We buy gold and silver back. The final amount is set at the counter after testing, at that moment's price. Metal prices move through the day, so nobody can honestly fix a buy-back figure weeks ahead. How selling to us works is set out at bullionking.sg/sell.

Where you can, keep bars in their original packaging or certificate card. A clean, undamaged piece from a known refiner is quicker to test and process, wherever you end up selling it.

How can I pay, and does any method cost extra?

Payment options differ from dealer to dealer, and some come with fees you only see at the till. Ask before you commit, so the total you expected is the total you pay.

Larger purchases also come with some paperwork, by law. For cash and cash-equivalent transactions above S$20,000, registered dealers must carry out customer due diligence and file a cash transaction report. For purchases above S$20,000 we take your NRIC or passport details, as the PSPM Act requires of every registered dealer. If someone offers to skip that on a big purchase, walk away. The Ministry of Law has the full rules.

• Online orders with us: PayNow or bank transfer.
• In the shop: PayNow, bank transfer, cash or card.
• Card payments have a fee; ask us if you want the total before you pay.
• Bring your NRIC or passport if your purchase is above S$20,000.

How do I get my metal, and what goes on the receipt?

Ask how and when the metal reaches you. Self-collection at our shop is free. We're at #01-17, Centrium Square, 320 Serangoon Road, open Monday to Saturday 12pm to 8pm and Sunday 2pm to 8pm, and you don't need an appointment. Delivery within Singapore is by courier. With any dealer, ask exactly what their delivery covers rather than assuming.

Collecting in person has one clear advantage: you see the piece before you leave. Check the refiner's mark, weight and fineness against your order, and make sure any sealed packaging is intact.

Then get a proper receipt. It should show the dealer's name and address, the date, each item with its brand, weight and purity, and the amount paid. Keep it somewhere dry, not in a drawer that turns damp in the monsoon months. It's useful if you sell later or need to show where a piece came from.

Is there GST on what I am buying?

Ask, because it depends on the item. Since 1 October 2012, investment precious metals have been exempt from GST in Singapore. Gold must be at least 99.5% pure, silver at least 99.9% and platinum at least 99%, as bars, ingots, wafers or coins. Bars and wafers must come from an accredited refiner and carry its mark, fineness and weight, and coins must meet IRAS's own conditions.

Jewellery, and metal below those purities, doesn't qualify, so GST at 9% can apply. A dealer should be able to tell you which side of the line an item sits on. For the full conditions, IRAS's e-Tax guide on investment precious metals is the place to look.