It comes to as little surprise to most people that gold is a popular item to own.
It tends to be quite valuable and often appreciates in value – of course, the more pure the gold, the better the value.
But, when it comes to purchasing gold in Singapore – it can be quite confusing as to the processes and whether or not it is even worth buying it in the first place.
We’ve created a helpful guide to assist you with your gold purchasing questions and aim to answer if it’s worth buying gold in Singapore.
Benefits Of Buying Gold In Singapore
Singapore has somewhat of a unique attitude towards gold. It’s one of the best places you can purchase and store gold because there’s absolutely no tax on bullion.
Besides this, there are always huge benefits to investing through the purchase of gold in Singapore. In fact, there’s always a wise rationale for investing in gold wherever you are.
Gold for centuries has been used as a monetary asset.
During times of great financial crisis, the price of gold tends to skyrocket around the global markets.
The reason for this is that many people will move some of their wealth into precious metals.
Because gold has no counterparty risk, it’s clear as to why these trends of investing in gold at times of global financial crises occur.
In some respects, it’s almost as if you’re investing in a financial safety net or insurance.
Interestingly, when the value of a currency depreciates – the value of gold does not, if anything it will rise due to mass investment. Remember, when we’re talking about investing in physical gold as an asset, there’s a limited amount.
Essentially, due to the fact that physical gold is finite – its value will always be worth investing in.
This is probably why nations continue to hold onto their gold supply and protect it strongly. In the US for example, a lot of gold is held at Fort Knox which is defended by the military and other officials.
Much in the way that individuals will, and should, invest in gold as a fail-safe for financial problems – countries also do this to protect themselves for several reasons.
Of course, countries have many more people to consider and they will invest in and protect their gold supply due to the following reasons:
- In case gold becomes the primary form of money in the future, as it used to be.
- As protection against huge problems such as depression, financial disaster, or war
- It’s a wiser choice for investment as opposed to other currencies or metal
As a physical asset and not a promissory note that currencies that act as gold has little risk of financial default – therefore dealing in gold is pretty simple and a much safer idea.
How To Purchase Gold
Buying gold is a much larger and more varied system than buying gold jewelry (although that is one way to do it!) – There are many ways to invest in gold in Singapore. Consider the following ways:
The Purchase Of Physical Gold
A tale as old as time – for centuries, man has used gold as a monetary instrument.
Of course, the largest form of physical gold investment is gold bullion or gold bars. In Singapore, 1kg of gold is worth around $80,000.
Of course, whichever form of physical gold that you decide to purchase (tax-free!) is going to require a place for storage.
You might decide to purchase gold jewelry, so you may decide to place this in a safe at home.
If you’re buying gold bars or gold bullion, depending on the amount – you may need to acquire the services of a bank’s safety deposit box.
You’ll want to ensure that you’re following in the footsteps of a nation’s central bank – safely store your gold and protect it!
The Purchase Of Gold Certificates
Sometimes, it’s not possible to buy physical gold – may be due to a lack of storage space!
So, another way to purchase gold is to buy a gold certificate, which some call paper gold.
These certificates do not expire and can be used to receive physical gold or converted back to cash.
In essence, you still have the same benefits of the ownership of gold – but without the added headaches of needing to store it right away.
The only problem is, much like banknotes – these certificates are promissory and aren’t actual guarantees.
In other words, it holds some risk to other parties that the gold supplier or bank will adhere to the certificate. Therefore, if this is something you’d be interested in – it’s important you check to see the supplier’s regulation.
A Singapore Gold Savers Account
Singapore offers a type of account that allows you to invest in gold in a similar way to gold certificates.
It allows you to buy and sell gold for a monthly fee and for a minimum transaction of 5g of gold. It’s a good way to invest in gold and is highly regulated.
Gold As A Stock
The gold exchange-traded fund works in the same way as other bonds and stocks.
Investors can keep an eye on the rates that gold is selling at and allow them to track their progress.
This is a highly transparent way to see your investment and does not require you to store physical gold.
Gold As A Commodity
Providers such as IG allow the sale of gold as a commodity, the same way that you would trade in other metals and resources.
It’s typically a short-term solution for investment and can bear some fruit to the people savvy enough to take advantage.
Selling Gold In Singapore
If you’re purchasing physical gold, there are many pawnshops and brokers that will accept gold and pay over the odds for it, particularly if you are selling gold at a time when the rate is through the roof.
However, if you’re dealing in gold investment through stocks and bonds, you can normally do this online and have a rate transparently stated.
So, Is It Worth It? – Summing It Up
The point is, purchasing gold in Singapore is definitely worth it, but to make the most out of receiving a return – you should keep a close eye on the rates of gold, normally much higher when there is a financial crisis.
It’s always worth speaking with a financial expert before buying any large amounts of gold as an investment and deciding which method is best for you.