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Gold Investing in Singapore

There are numerous options for you to insure against inflation and market volatility, from your gold wedding bands to gold exchange-traded funds (ETFs). Here are some fundamentals of investing that are priceless.

1. Gold as a Safe Haven

Gold, a precious metal, has been around for ages, holding its value through time and demonstrating to be a reliable inflation hedge. Due to gold's ability to maintain its monetary worth, it is well regarded as a safe haven that investors turn to during periods of market turbulence.

2. Gold is a Tangible Asset

Gold is a tangible commodity that you can see, feel, and touch, much like money and real estate. Due to its physical portability, it has a higher perceived level of security than other investment assets like stocks, bonds, or cryptocurrency.

3. Portfolio Diversification

One approach to lower the risk you take with your portfolio is through diversification. This is accomplished by diversifying your assets across industries, asset classes, and geographic regions so that your portfolio won't collapse if one of them suffers a setback.

One method to boost diversification in your portfolio is to include gold, especially since research has shown that gold has no association to other main asset classes.

4. Globally Accepted and Recognized

All around the world, people recognise and cherish gold as a precious metal. You will be able to sell your gold to a jeweller, whether they are in Singapore, South Korea, or the USA.

5. Visual Appeal

Some people might buy gold not simply as an investment but also because gold products might seem stunning, sophisticated, and exquisite. For example, your wedding bands, necklace, earrings, and bangles could all be made of gold.

Ways You Can Invest in Gold

Physical Gold:

Based on the current prices, real gold can be purchased from gold retailers in the form of gold bars and gold bullion coins. For instance, if you were to purchase one kilobar of gold today, you would have S$85,000 in your home's closet.

You can buy these gold bars or gold bullion coins in person or online. Existing UOB clients, for instance, can purchase gold products online and pick them up in person at the UOB Main Branch. Under the CPF Investment Scheme, you may even utilise CPF funds to buy gold.

While it might be nice to keep bars of gold at home as your safety stash, physical gold not only takes up space, but also requires additional logistics to store and keep secure.

Gold Certificate

Gold in its physical form can be bulky. Consider a gold certificate if keeping your gold safe is a concern. Cash or actual gold can be exchanged for gold certificates. Two holders may also be used to hold them.

For instance, UOB offers gold certificates that may hold up to 30 kilobars each and are priced in kilocerts (the same as gold bars). Additionally, they don't have an expiration date, so you won't have to sell your gold certificate. These gold certificates do, however, have a cost. UOB charges an annual service fee of S$72 per kilobar, plus a flat fee of S$5 per certificate, both subject to GST.

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