Last updated: February 2024
Key Takeaways:
- Value Proposition: Gold in Singapore is valued for its lower premium over spot price compared to other countries.
- Purity and Design: Singapore offers a variety of gold options, from investment-grade bullion to exquisite jewelry.
- Tax Considerations: Gold purchases in Singapore are not subjected to Goods and Services Tax (GST), making it more affordable.
- Trusted Retailers: It's crucial to buy from reputable dealers to ensure authenticity and competitive pricing.
Singapore's gold market shines with opportunities for investors and collectors alike. With no GST and a reputation for high purity, gold in the Lion City is an attractive commodity. Whether for investment or adornment, buying gold here offers a blend of quality and affordability that stands out globally.
Singapore has changed in recent years from one of the safest places to purchase and keep gold to a destination for businesses and investors seeking one of the most potent asset security measures.
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Is Singapore gold good?
Is it good to buy gold in Singapore? - Is Gold Cheap in Singapore?
Singapore has transformed in recent years from one of the safest places to acquire and store gold to the destination for business people and investors to secure their valuables using one of the most sophisticated asset protection methods. So, Singapore gold is unquestionably excellent and worth investing.
Being a part of Asia has a lot to do with Singapore's success. Gold, in particular, is highly valued throughout Asia, not only financially but also culturally.
Singapore, on the other hand, is the ideal jurisdiction in the world for buying and holding gold since there are no bullion taxes and it is the world's safest country with a strong rule of law. Further we are the 3rd largest gold buyer in the world in 2023.
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Which country is cheapest for gold?
According to reported face value gold prices at the end of 2023, Hong Kong may still be the cheapest place to acquire gold from. According to sovereignman.com, it is feasible to buy gold in Hong Kong for a lesser premium than in other nations.
However, in order to receive the very lowest pricing, you must often travel to banks in Hong Kong. This is not to imply that internet purchases from Hong Kong or other places with inexpensive gold prices cannot be done; nevertheless, online transactions are frequently subject to a markup.
This isn't necessarily a terrible thing, as long as the markup is modest and clearly stated.
Other countries with historically low gold prices are as follows:
- India
- United Arab Emirates
- Switzerland
- Thailand
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Is it wise to buy gold now?
Gold should be included in a well-diversified investment strategy since its price rises in proportion to circumstances that drive the value of paper investments such as equities and bonds to fall.
Although gold's price might be unpredictable in the short term, it has always held its worth in the long run. It has proven as a buffer against inflation and the depreciation of major currencies over the years, making it an investment well worth considering.
Here are some of the reasons why you should invest in gold right now:
Safe haven
Gold, apart from currencies, is unaffected by interest rate choices and cannot be produced to manage supply and demand. Gold is a precious asset that has held its long term value and has demonstrated its utility as an insurance policy during economic downturns.
As a result, many investors see gold as a safe haven.
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Gold stock opportunities
The price swings of the precious metal, gold, are frequently mirrored in the prices of gold stocks. Gold stocks, on the other hand, may remain profitable even when gold prices are low.
Furthermore, many gold mining businesses provide large dividends, which might give further motivation for investors to acquire gold stocks rather than gold.
Wealth preservation
Many investors have placed their confidence in gold for its ability to preserve wealth. Consider the difference between possessing $85.63 in gold and owning a $85.63 note in 1980.
Gold has now increased in value, thus the gold now significantly outweighs the original $85.63 investment. However, the value of the $85.63 note has not grown and, as a result of inflation, cannot purchase as much as it did in 1980.
Portfolio diversification
Diversification assets such as gold are frequently included in a well-balanced portfolio since they are typically negatively associated with the stock market. A varied investing portfolio can assist investors decrease risk and volatility.
Hedge
Gold prices frequently rise in tandem with increasing inflation rates and a weakening currency. As a result, when investors realize they are losing money, they may try to acquire gold as a hedging asset.
This follows the general reasoning that gold frequently retains or even increases in value when the value of the dollar declines.
How to invest in Gold in Singapore?
Investing In Gold in Singapore - Is Gold Cheap in Singapore?
There are five primary ways to invest in gold in Singapore, which are as follows:
1. Gold Exchange Traded Fund
You may buy gold by buying an ETF that owns, holds, and gets its value from actual gold. In H1 2020, it had the largest average monthly turnover value of any ETF listed on the SGX, demonstrating the change in investor interest in gold last year.
With more than US$70 billion in assets, the aforementioned SPDR Gold Shares ETF is the biggest physically backed gold ETF.
2. Jewellery
Gold wedding bands, gold earrings, gold bangles, gold anklets, and gold necklaces are all popular pieces of gold jewelry found in homes. This is due to the fact that the worth of gold is determined by its weight and purity.
Even if you decide not to sell your gold jewelry in the future, you may still use it by wearing it on special occasions or keeping it as a hand-me-down for your children.
3. Gold stocks
Aside from buying an ETF, you may also explore buying specific equities linked to gold mining companies. Newmont Corporation is the world's largest gold business, with mines in nine countries.
It is also the only gold producer to be included in the S&P 500 Index. Buying gold-related stocks, like buying an ETF or other forms of equities on the market, allows you to execute intraday trades.
4. Physical Gold
Physical gold, such as gold bars and gold bullion coins, may be purchased from gold dealers at current rates. These gold bars and gold bullion coins are available for purchase both online and in person.
Under the CPF Investment Scheme, you can even utilize your CPF savings to acquire gold. While it may be convenient to keep gold bars at home as a safety deposit, real gold not only takes up room but also necessitates additional logistics to store and maintain security.
5. Gold certificate
Physical gold may take up a lot of room. If you are concerned about keeping your gold, you may want to consider a gold certificate instead.
Gold certificates are convertible into cash or actual gold.
What is the cheapest form of gold to buy?
Gold bars offer the lowest premiums above spot in general. The premium is the cost over and above the melt value of a gold item.
Because of their generic look, gold bars offer the lowest prices above spot because they can be efficiently mass-produced. However, the supply and demand for individual items is also important.
Depending on market availability, ancient gold coins may give the most bang for your cash. Just make sure you stick to common-date coins that are not in mint condition.
Rare or well-preserved gold coins will always be more expensive.
Where to buy physical gold in Singapore?
UOB is now Singapore's sole bank that offers the sale and purchase of actual gold, the issue of gold certificates, and a savings account devoted to either gold or silver.
To acquire real gold in the form of gold bars or bullion coins, you may either order online and pick up in person at the UOB Main Branch within 5 working days, or you can purchase in person at the UOB Main Branch.
These certificates have no expiration date and can be redeemed for cash or actual gold.
Check the latest gold and silver prices here.
Gold Vs. Silver: Which Is The Better Investment?
| Aspect | Gold | Silver |
|---|---|---|
| Historical Value | Traditionally viewed as a store of value and a safe-haven asset | Historically valued for both its industrial use and monetary role |
| Price Volatility | Generally less volatile than silver due to its larger market and diverse investor base | More volatile due to smaller market size and higher industrial demand fluctuations |
| Affordability | More expensive per ounce, making it less accessible for small investors | More affordable per ounce, which can be more accessible for small investors |
| Industrial Demand | Has significant industrial demand, but less than silver | High industrial demand, particularly in electronics, solar panels, and other technologies |
| Market Liquidity | Highly liquid, with a well-established market for both physical and paper trading | Less liquid than gold, but still maintains a robust trading market |
| Storage and Handling | Higher value density, requiring less storage space for equivalent value | Lower value density, requiring more storage space for equivalent value |
| Investment Products | Wide range of investment products, including coins, bars, ETFs, and futures | Variety of investment options, though fewer than gold, including coins, bars, ETFs, and futures |
| Potential for Growth | Often seen as a long-term investment with steady growth potential | May offer higher growth potential due to industrial applications and smaller market size |
| Inflation Hedge | Considered a strong hedge against inflation and currency devaluation | Also serves as a hedge against inflation, though may be influenced more by industrial demand |
| Accessibility | Accessible through various channels, including physical purchase, stocks, and mutual funds | Also accessible through multiple channels, with a particular focus on physical and futures markets |
Guide to Gold in Singapore
Here are some handy questions most folks have about….
Is it legal to own gold in Singapore?
If you are a tourist, you can even claim a GST refund.
Gold bars and coins are all available for purchase in Singapore, however, interest and dividends from gold-related investments may be subjected to income tax.
Moreover, the Singapore government has imposed restrictions on the import, export and re-export of gold.
In order to legally buy and sell gold in Singapore, individuals and businesses can do so through registered dealers, Gold Certificates, Gold Savings Account or Gold stocks, mutual funds and ETFs.
Can foreigners buy gold in Singapore?
Bulk purchases of gold require an import permit from the Singapore Customs.
Depending on the type of gold, requirements for the import permit may differ. Moreover, there are certain investment guidelines and tax implications that must be followed when purchasing gold for foreign investors.
How do you store gold in Singapore?
The most common option is to store gold in a bank safe deposit box, with selection of banks offering this service. This can be a convenient way to store gold as the bank is reliable and has a secured environment.
Furthermore, some banks have service packages that can include providing insurance for gold stored in their safe deposit box.
Alternatively, gold owners can also opt to store gold in their own home safe. This allows for more control over the safety of their gold, but gold owners should keep in mind the importance of selecting a quality and secure safe.
Lastly, gold owners can also choose to store their gold in a bullion vault or with a gold storage company. These professional and secure services are often more expensive, but provide greater security for storing gold over the long term.
Is Gold Cheap in Singapore?
With all of the above facts and information, we can all agree that gold in Singapore is worth acquiring and investing in since it is reasonably priced. In fact, Singapore is the number one place for purchasing and storing gold bullion.
If you're thinking about buying and investing in gold in Singapore, now is the time to act. You will not be disappointed if you invest in it.
We hope that we have assisted you in determining if it is beneficial to acquire and invest in gold in Singapore. At the end of the day, it is your decision that is important.
It's a case of taking the risk or losing the opportunity.
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