Gold has long been seen as a safe haven asset and store of value, especially in times of economic uncertainty. As a key global financial hub, Singapore provides a conducive environment for gold investment with its stable political climate, developed financial markets and favorable tax policies. This article will explore the various ways to invest in gold in Singapore.
Buy physical gold from bullion dealers in Singapore
Purchasing physical gold, such as gold bars and coins, is the most direct way to own the precious metal. In Singapore, there are many reputable bullion dealers that offer a wide selection of gold bars and coins in various sizes and designs. Popular choices include the Singapore Mint gold coins and PAMP Suisse gold bars. Investors can choose to store the physical gold at home or in secure facilities offered by some dealers. When buying physical gold, it’s important to only purchase from established dealers and check for proper certifications.
Invest in gold ETFs traded on Singapore Exchange
For investors who prefer more liquidity and convenience, investing in gold exchange traded funds (ETFs) listed on the Singapore Exchange (SGX) is an option. SPDR Gold Shares and UOB Gold ETF are two popular choices that track the price of gold. These ETFs provide exposure to gold without needing to store the physical bars. Investors can easily buy and sell the ETF units like regular stocks on SGX during trading hours. However, there are management fees involved.
Open a gold savings account with banks
Some banks in Singapore such as UOB and DBS provide gold savings accounts that allow customers to invest in gold for as little as $1. The bank will purchase physical gold on your behalf and store it securely. This makes gold investment affordable to more investors. However, investors do not have direct ownership of the gold bars purchased. There are also account fees to consider.
Trade gold futures and CFDs
For more sophisticated investors, trading gold derivatives such as futures and CFDs (contracts for difference) allow them to speculate on gold prices. Gold futures are available on SGX and CFDs can be traded with brokers. While profits can be large if gold price moves favorably, the high leverage also brings significant risks of large losses. Sufficient trading knowledge is a must before venturing into gold derivatives.
Singapore provides a supportive environment for gold investment through established bullion dealers, gold ETFs, bank gold accounts and gold derivative products. Investors should choose an appropriate method that fits their investment objective, risk appetite and preference towards physical gold versus paper gold.