How To Invest Gold In Singapore For Beginners?

Want To Invest In Gold In Singapore? Here’s How.

When the economy gets tough, economic markets are thrown off balance. This is why many investors turn to gold as a form of investment in Singapore. Through the years, gold has stood the test of time. It has garnered the reputation of a safe investment, and this is backed by the fact that it has maintained high value throughout centuries.

In most countries around the world, gold has been respected and valued for thousands of years. Even until now, societies continue to hold gold with high regard for tons of reasons, thus further validating its worth. This is exactly why investors need to make it a part of their portfolio.

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Benefits Of Investing In Gold

In a world that has become immensely modernised, is it still a good idea to invest in this old-fashioned investment? The answer is a resounding yes.

There are several reasons why people choose to invest in gold in Singapore. We have rounded some of them below.

It is a tangible asset.

One of the most important things that attract investors to gold in Singapore is the fact that it is a tangible asset. It is also relatively easy to keep and store. Investors can choose to store their gold in a vault and leave it there, or they can access it as they please.

It is a hedge against inflation and crisis.

Gold can be used as a hedge against inflation. This is because gold retains its purchasing power, even when inflation occurs. Because the value of gold is preserved, the effects of inflation are kept at bay.

It is a great way to diversify your portfolio.

Gold is a fantastic portfolio diversifier. In a sense, the yellow metal can help decrease the volatility of your portfolio. If your portfolio is affected by a certain type of market risk, gold can balance this out. This is because sg gold price is not affected by a lot of the varied factors.

It is liquid.

Unlike some other forms of investment, gold can be liquidated easily. This is especially important if you are planning to sell it right away. Selling gold can also be done in several ways. For example, you can sell it for cash and withdraw it, or you can trade it for other investments.

It is globally accepted.

It is a fact that most investors want their investments to be accepted in as many places as possible. Gold has been universally accepted in most places around the world. This makes it easier for investors to liquidate their assets right away if there is an emergency.

It has an aesthetic appeal.

Gold has a certain aesthetic appeal to it. It has been used to make fine jewellery and other forms of art for years. It even has a cultural significance. Some investors also believe that investing in gold in Singapore can add a layer of sophistication to their portfolio.

It does not require intense maintenance.

Gold is easy to store. It doesn’t require any special care or maintenance. Thus, investors are not required to hire a specialist to take care of it. Moreover, it’s not necessary for investors to constantly monitor the market for fluctuations.

It can be passed on to the next generations since it will not deteriorate over time

As mentioned earlier, gold is highly valued in most societies. It is considered a precious metal that can be kept, sold, and traded by future generations without worrying about degradation. If you invested in gold jewellery, it also has a sentimental value, and it can be passed down to your loved ones.

Risk Of Investing In Gold In Singapore

Compared to other forms of investment, gold is not considered high-risk. This is exactly why it performs so well during inflation and times of economic uncertainty.

Another thing to keep in mind is gold prices may increase in times when there is an economic crisis, and crash in times of economic recovery.

For instance, the price of spot gold experienced its highest one-day drop since 1983 in 2013 when its price plunged to S$140.30 per ounce, a sharp 9% decline.

That said, the price of gold always recovers. Unless there will be a major gold discovery that will dramatically increase its supply, gold is unlikely to lose its appeal. This is because it will always be in demand, regardless of changing market conditions, and it is very unlikely to depreciate in the long term.

Top Ways You Can Invest in Gold in Singapore

Top Ways You Can Invest In Gold In Singapore

If you are wondering how to invest in gold in Singapore these are the best ways to do it. If you want to closely monitor the value of gold, use this link to see the Singapore gold price today.

Take a look at this table to determine each investment side by side.

Investment Pros Cons
Jewellery
  • Easy to buy
  • Can be used as an accessory
  • Takes up space
  • Hard to let go due to sentimental value
Physical gold (gold bars, gold bullions)
  • Gives great sense of security
  • Takes up physical space
  • Harder to secure
Gold Exchange Traded Fund
  • Highly liquid
  • Low starting investment
  • High fees
Gold stocks
  • Highly liquid
  • Investors can receive dividends
  • Very dependent on market volatility
Gold Certificate
  • Does not take up space
  • High service charges
Gold Savings Account
  • Does not take up space
  • Low starting investment
  • Has a monthly fee

1. Jewellery

The most obvious form of gold investment is investing in jewellery. Part of the charm of gold investment is buying the yellow metal itself. You don’t need to be an expert to invest in gold jewellery. Many investors choose this route because it has less effort involved than other means. You can even buy ready-made gold jewellery. This means you can wear your investment and show it off to your friends. It does not need preserving or special care, and it is quite easy to liquidate.

With gold jewellery, you don’t have to worry about going out of style. There are many different types of jewellery you can invest in such as earrings, rings, necklaces, bracelets, and even bangles. You can also use it as a gift.

2. Physical Gold

There is no better way to put it – gold is synonymous with money. Considering this, you can purchase physical gold bars and gold bullion coins from various retailers. Gold bars usually range from 1 ounce to 1 kg, but there are also smaller gold bars at 500 ounces.

Meanwhile, gold bullion coins are legal tender with a face value. It is accepted and traded around the world and can be bought and sold back to the market easily.

When buying physical gold, keep in mind that it needs to be stored in a secure location. Most people choose to store it in a vault. If you do not have the budget for this, you can check if your home insurance covers it.

UOB Gold

Existing UOB customers and those interested can easily buy gold items and get them at UOB.

Aside from cash, you can also use your CPF to buy gold in Singapore. Internet banking users can buy gold bars or gold bullion coins online and pick them up within 5 working days at Banking Hall Basement, 80 Raffles Place, UOB Plaza 1.

To buy gold bars, gold bullion, and gold certificates, simply head to the location from 9:30 am to 4:30 pm, Mondays to Fridays (except on public holidays).

UOB has a range of gold coins and bars for your selection, but these are subject to availability. It is also not necessary to open a UOB account to be able to buy these coins. The accepted forms of payment include:

  • Debit from your UOB Singapore account
  • Pay by cash up to a maximum of S$20,000
  • Pay by cashier’s order up to a maximum value of S$250,000 (for payment by cashier’s order, you may collect the gold after the cashier’s order is cleared on the following day.)

One benefit of purchasing a gold bar Singapore from UOB is that it is exempted from Goods & Services Tax.

Check out UOB’s current rates for gold bar price Singapore.

Considering the UOB gold price Singapore listed above, buying a kilobar of gold cast bar will get you back S$82,437. UOB’s Head of Markets Strategy Heng Koon How stated that the price of gold is expected to rise to S$2,200 by the end of 2022.

If you plan to liquidate the gold you bought at UOB, the bank can buy it back. You are required to produce invoices of purchase satisfactory to the bank, and the gold bars or coins must be in good condition. This shall be determined by UOB. For UOB gold bars, the seal must also be intact.

Foreigners must bring the following documents to buy physical gold:

  • Identification card / original passport
  • Proof of residential address (e.g., Bank statement, utility or phone bill bearing the account holder’s name and address)

3. Gold Exchange Traded Fund

If you do not want to purchase physical gold, you can buy an ETF. This owns, holds, and gets its value from holding the physical gold. Doing this is a good way to invest in the gold market efficiently, without having to own any precious metal.

Gold ETFs are traded on stock exchanges. Therefore, it is highly liquid and easily accessible. Currently, the SPDR Gold Shares ETF is the largest physically-backed gold ETF in the country. It holds gold bars to track the performance of gold bullion.

Other ETFs you can check out include VanEck Vectors Gold Miners ETF and iShares MSCI Global Gold Miners ETF, which both track gold mining companies.

4. Gold Stocks

Aside from ETFs, you can also purchase individual stocks that are connected to businesses in the gold mining sector. These companies extract gold from mines.

For instance, you can buy stocks from the Newmont Corporation, the largest gold company in the world. It has mines in operation in 9 countries, and it is the only gold producer that is listed in the S&P 500 Index.

Just like other stocks and ETFs, you can also make intraday trades when you purchase hold stocks. This makes it a great investment vehicle for people who want to invest in dividends instead of worrying about physical gold since this investment usually involves logistics such as storage.

DBS Gold Linked Notes (GLNs)

GLN is an equity-based structure note like Equity Linked Notes. The only difference is that the underlying is gold instead of stocks. These are usually used by investors to improve their return on cash holdings.

Use this link to apply for DBS GLN. A relationship manager will reach out to you for further details.

5. Gold Certificate

Investing in physical gold in Singapore is truly one of the best things. But for investors that do not want to worry about their investments taking up space for storage, gold certificates are an amazing option.

UOB Gold Certificates

UOB sells gold certificates in kilocerts. The certificates are sold in multiples of 1 kilobar of 999.9 fineness, and each certificate can hold a maximum of 30 kilograms.

These certificates do not have an expiry date so there is no need to be worried about liquidating your certificate. This investment can also easily be exchanged for physical gold or cash.

Keep in mind that UOB charges a flat fee of S$5 per certificate, as well as a S$72 service charge per kilobar per annum (subject to changes).

Gold certificates can be ordered through internet banking and claimed at Banking Hall Basement, 80 Raffles Place, UOB Plaza 1 within 5 working days. Orders can also be made directly at the aforementioned branch from 9:30 am to 4:30 pm, Mondays to Fridays (except on public holidays).

UOB accepts the following payments for gold certificates:

  • Debit from your UOB Singapore account.
  • Pay by cash up to a maximum of S$20,000.
  • Pay by cashier’s order up to a maximum value of S$250,000. (For payment by cashier’s order, you may collect the gold certificate after the cashier’s order is cleared on the following day.)

Keep in mind that to purchase a gold certificate from UOB, you have to be at least 18 years old. It can be held by a maximum of 2 holders who must be present during the purchase of the Gold Certificate. In case of loss, both holders must report the loss. Either holder is also allowed to sell the certificate. For those using their CPF to purchase, it can only be issued to one holder.

6. Gold Savings Account

Another way you can invest in gold is through a Gold Savings Account. If you are a gold savings account holder, you can buy and sell gold without having to purchase gold physically. All your holdings will be recorded in grams.

UOB Gold Savings Account

This account can be opened at any UOB Branch from Mondays to Fridays. For this account, you can choose to have a passbook or get statements of accounts in respect of your SSA or GSA.

OCBC Precious Metals Account

In the first week of the launch of this account, over S$1 million worth of silver and gold were traded. With this account, you can buy gold and silver straight on your app.

You can start with 0.01 ounces (0.31 grams), which is approximately S$27, and you can invest using your Singapore Dollar account or other currencies in your global savings account. To open a precious metals account, simply login to your OCBC app. No branch visit is needed. To open an account, you must be at least 18 years old.

Here is how to do this:

  1. From the menu, click “Invest” and select “Gold, Silver.”
  2. Check out the information on “Gold.”
  3. Open a precious metals account.
  4. Enter purchase details by choosing “Amount to Invest” and “Quantity.”
  5. Complete transaction.
  6. Track your investment.

Read: 5 Best Savings Accounts In Singapore With Highest Interest Rate (2022)

A Word from OMY

Top Ways You Can Invest In Gold In Singapore

Investing in gold in Singapore can be a fulfilling experience. If you are looking to diversify your portfolio with “traditional” investment, gold can provide you with a source of stability and security, especially in times of crisis.

But just like any other form of investment, it requires due diligence and an understanding of the market.

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