The PSPM Act: what it means when you buy gold or silver

What the PSPM Act is and who it covers

Gold and silver pack a lot of value into a small space, and they are easy to carry and resell. That makes them useful to anyone trying to hide where their money came from. The PSPM Act puts dealers in precious metals, precious stones and jewellery under clear rules so they know who they are dealing with on large transactions.

The Ministry of Law looks after it. Businesses that trade as regulated dealers must register with the Ministry, and that covers bullion shops like ours as well as jewellers and other traders in metals and stones.

For you, the Act is not a tax and it does not change the price. The duties sit with the dealer. When we ask questions on a large order, we are meeting those duties. It says nothing about you personally.

What a registered dealer has to do

The rules are short to list. Running them properly behind the counter, every day, takes rather more work. The main duties are these:

Registered dealers are overseen by the Ministry of Law, so a properly run shop applies these steps the same way every time, including for regulars we have known for years. The Ministry of Law publishes guidance on the Act if you want the full detail.

• Register with the Ministry of Law before trading.
• For cash and cash-equivalent transactions above S$20,000, carry out customer due diligence: identify the customer and verify who they are.
• File a cash transaction report for those transactions.
• Keep records of the transactions and of the checks done.

Why we ask for your NRIC on larger orders

S$20,000 is the line. On purchases above it, we take your NRIC or passport details before we complete the sale, as the PSPM Act requires of every registered dealer. On a smaller order, a bar or a few coins, you would not normally be asked.

Some customers find it a little intrusive, especially those who remember buying gold over the counter with no paperwork at all. We understand. But a dealer who skips the check on a large order is either not registered or not following the law. Being asked for ID on a big purchase tells you the shop is doing its job.

Breaking one large purchase into several smaller ones to stay under the threshold is something we cannot help with. If your order comes to more than S$20,000, bring your ID and we will record it once. It is quicker for everyone.

What happens at the counter on a large purchase

It adds a few minutes, not much more. Singapore citizens and permanent residents should bring their NRIC; visitors should bring a passport. Our staff check the document, take down the details and do the paperwork while your order is being prepared.

The rest is the same as any other visit. Prices follow the live world spot price through the day, with our premium shown openly on every product page, and when the world market is closed at weekends we sell at the last closing price. Every piece has been tested before it is sold, with PMV and XRF testing and a Veriscan check on PAMP bars.

Payment doesn't change either. In the shop you can use PayNow, bank transfer, cash or card, and card carries a fee. Planning something large? Send us a WhatsApp first to check stock, so you don't make the trip for nothing. If you order online, collecting from the shop is free.

Selling to us and the S$20,000 threshold

The Act looks at transactions in both directions, so it is not only about dealers selling to customers. If you are bringing in a sizeable amount of gold or silver to sell, expect the same identification step once the total goes above S$20,000.

At our counter we test your pieces first, then set the final amount at that moment's price. Because you won't know the exact figure until testing is done, bring your NRIC or passport anyway if the total might be large. Coming back another day just for the ID is a nuisance. Our sell page walks through the process.

How to check that a dealer is registered

Each registered dealer has a number issued by the Ministry of Law. Bullion King Pte. Ltd.'s is PS20260001016, and you will find it on the About page of our website and in the footer. Any dealer should be able to give you theirs straight away.

A registration number does not tell you everything about a shop, but it is a sensible first thing to check before a large purchase. Our guide on questions to ask a bullion dealer before you buy also covers testing, pricing and selling back.

What the PSPM Act does not cover

The PSPM Act often gets mixed up with the GST rules on gold and silver. They are separate. Whether a bar or coin is free of GST depends on whether it counts as investment precious metal, which turns on purity, form and where it was made, and IRAS sets those rules. Our guide to GST-free gold and silver in Singapore explains the details.

The Act is also not a register of everyone who owns gold. It deals with how registered dealers identify customers, report qualifying transactions and keep records. For the exact legal wording, go to the Ministry of Law.