| From your gold wedding bands to gold ETFs, there are many ways for you to hedge against market volatility and inflation. Here are the investment basics worth their weight in gold. Show
By now, we’re all accustomed to expecting the unexpected, whether it's about new COVID-19 variants, the worsening of bilateral ties between China and USA, or yet another company shuttering its stores. The stock market is no different. We’ve seen the Nasdaq hit their new highs in 2021, but also seen stocks such as Tesla plunge more than 5% in a day. Similarly, after suffering from an 'overnight crash' in 2021, with prices dropping US$60 per minute, gold prices have yet to really pick up in 2022. Amidst market volatility, rising interest rates and strength in the US dollar, gold is still worth investing in. Here's why:
Reasons why people invest in goldGold as a safe haven: A precious metal, gold has been around for centuries, preserving its value over the years and proving to be a good hedge against inflation. It is known to be a safe haven investors fall back on in times of market volatility, as gold can hold its monetary value. Gold is a tangible asset: Much like cash and property, gold is an item you can see, feel and touch. This makes it an asset you can possess physically, giving it a perception of safety unlike other investment assets such as stocks, bonds or cryptocurrencies. Diversification of your portfolio: Diversification is one way you can reduce the risk you take in your portfolio. This is done by spreading your investments across asset classes, geographies and industries so that when one industry or asset class takes a hit, your entire portfolio won’t go under. Adding gold to your portfolio is one way to increase diversification, especially as gold has shown to have low correlation to major asset classes. Globally accepted and recognised: Gold is a precious metal that is recognised and valued all across the world. Be it a jewellery seller in Singapore, South Korea, or the USA, you will be able to sell your gold. Visual appeal: Some people might purchase gold not just for investment reasons, but also because gold items can look beautiful, classy and elegant. This could be gold items such as your wedding bands, necklace, earrings and bangles. Looking for a low-risk way to grow your savings? With a short-term commitment of 2 years, the GREAT SP Series 9 single premium endowment plan offers guaranteed returns of 3.38% p.a. upon maturity. That means a $100,000 investment will return you S$3,380 in interest after Year 1 and a total of S$106,844 when the plan matures. The plan also provides coverage against Death and Total and Permanent Disability. Apply Now Back to top Ways you can invest in gold#1 JewelleryAn investment type you can wear. Gold wedding bands, gold earrings, gold bangles, gold anklets and gold necklaces are all gold jewellery items commonly found in households. These gold jewellery items are practical to keep compared to other jewellery counterparts such as diamonds, as gold is able to preserve the value over time even if the trendy designs of today become outdated in the future. This is because the value of gold lies in its weight and purity. The best part about purchasing gold jewellery is that they can be worn as an accessory. Even if you choose not to sell your gold jewellery in the future, you can still find purpose with your gold jewellery, wearing it out on special occasions, or even keeping it as a hand-me-down for your children. Gold jewellery is also easy to purchase. You can head into any jewellery shop or even pawn shops to purchase off the counter. ProsConsEasy to buy from jewellery shops and pawn shopsTakes up physical spaceHas a purpose beyond investments — can be used as an accessory Has sentimental value, potentially making it harder for yourself to sell in the future#2 Physical goldGold is money. You can buy physical gold such as gold bars and gold bullion coins from gold retailers based on the current rates. For example, if you were to buy one kilobar of gold bar today, that would be S$85,000 sitting in your closet at home. These gold bars or gold bullion coins can be purchased online or in person. For example, existing UOB customers can buy gold items online and collect them in person at UOB’s Main Branch. You can even use your CPF funds to purchase gold under the CPF Investment Scheme. 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. This could mean spending on a safe deposit box at the bank, rather than keeping the valuable gold item at home. Make your money work harder for you by opening a Citi Plus Account — a digital-only wealth management platform that does way more than your average savings account. Earn higher interest rates on your savings with the Citi Interest Booster Account when you sign up for a Citi Plus Account, to fund your next high-tea treat! ProsConsBe a proud owner of a gold barTakes up physical spaceSense of security when you’re able to see, feel and touch the goldCosts to keep the gold safe and secure, such as using a safe deposit box#3 Gold Exchange Traded Fund (ETF)Instead of purchasing physical gold, you can invest in gold by purchasing an ETF that owns, holds and derives its value from holding the physical gold. This way, you can get exposure to the gold market in a cost-efficient way, without actually having to own the precious metal. ETFs have shown to be a popular investment vehicle, with the SPDR Gold Shares ETF leading the charge. It clocked the highest average monthly turnover value amongst all the ETFs listed on the SGX in H1 2020, highlighting the shift in investor interest into gold last year. On top of that, Singaporean investors are now able to access them in local currency since 30th June 2021. Gold ETFs trade on stock exchanges, making it highly liquid and accessible to all investors. Using the aforementioned SPDR Gold Shares ETF as an example, it is the largest physically backed gold ETF with more than US$70 billion worth of assets. It holds gold bars with the aim of tracking the performance of gold bullion. There are also ETFs such as the iShares MSCI Global Gold Miners ETF and VanEck Vectors Gold Miners ETF that track gold mining companies. ProsConsHighly liquid, can be bought and sold on the stock marketFees involved when purchasing ETFs, such as the expense ratio as well as commissions when buying or sellingGet gold exposure without having to own the goldSmaller, lesser known ETFs could be illiquid, making it difficult to sellLow cost method to start investing in gold, without having to select a gold stock or build your own gold portfolio#4 Gold stocksOther than purchasing an ETF, you can also consider picking individual stocks tied to businesses in the gold mining industry. Stocks in the gold mining industry are companies that extract the yellow metal from their mines. Examples of such stocks include Newmont Corporation and Barrick Gold Corporation. Newmont Corporation is the world's leading gold company that actively operates mines in nine countries. It is also the only gold producer listed in the S&P 500 Index. However, with the recent slide in gold prices, Newmont's stock prices have also plunged more than 20% in the last three months of 2021. Purchasing gold-related stocks allows you to make intraday trades, much like purchasing an ETF or other types of stocks in the market. Investors that prefer to invest for dividends can also consider gold stocks instead of physical gold. ProsConsHighly liquid, can be bought and sold on the stock marketSubject to market volatility Some gold companies give out dividends to investorsLess diversified than an ETFCompare Best Online Brokerage #5 Gold certificatePhysical gold can take up space. If storing your gold is a concern, you can consider a gold certificate instead. Gold certificates can be exchanged for cash or physical gold. They can also be held by two holders. For example, UOB has gold certificates which are sold in kilocerts (priced the same way as gold bars) and up to a maximum of 30 kilobars per certificate. They also have no expiry date, so you won’t be forced to liquidate your gold certificate. However, these gold certificates come with a fee. UOB charges a flat S$5 per certificate as well as a service charge of S$72 per kilobar per annum, subject to GST. ProsConsDoes not take up physical spaceIncur a service charge and feeAkin to buying a gold barMust keep the gold certificate safe as it is possible to lose, misplace or have your gold certificate stolen, although a new certificate may be issued#6 Gold savings accountWhen it comes to savings accounts, the usual names like DBS Multiplier, OCBC 360 and UOB One come to mind. But did you know that UOB offers a unique product — a gold savings account? This gold savings account allows you to buy and sell gold without having to physically purchase the gold. Your gold holdings are recorded in grams and the minimum quantity per transaction is five grams of gold. ProsConsDoes not take up physical space, while still allowing you to buy and sell goldIncur a monthly service charge of 0.25% p.a., subject to a monthly minimum charge of 0.12 grams of gold — potentially a hefty fee to pay if you only plan to buy a small quantity of gold.Can purchase gold using CPF fundsA minimum quantity per transaction of 5 grams of gold required Must have minimum balance of 5 grams of gold in your gold savings accountBesides the ways listed above, there are also other gold-related products such as Gold Linked Notes (GLNs) offered by DBS, as well as gold trading apps such as Troy Gold and Everest Gold. They allow you to trade gold with little capital required. Before jumping on the bandwagon, be sure to assess your own portfolio, current market conditions as well as your risk appetite before making your investment decision. Back to top  SingSaver Exclusive Offer: Receive S$100 cash when you apply for a Webull account and fund min. S$2,000 within 30 days of account opening. Valid till 7 February 2023. T&Cs apply. Additionally, get up to USD150 worth of cash vouchers and enjoy zero-commission trading. What's more, refer a friend and get USD120 worth of shares; refer 10 friends and stand to win an iPhone 14. T&Cs apply. Plus, apply for this product and score 2x entry in our Score Big Grand Lucky Draw, where you stand to win your share of over S$30,000 worth of exciting prizes! Valid till 18 December 2022. T&Cs apply. Apply Now How to use UOB’s gold price chartUOB lists its gold and silver prices in SGD on its website to make things easy for customers and investors. You can also access the gold and silver price chart via UOB Personal Internet Banking or UOB Mighty anytime, anywhere. While the gold and silver price chart is updated daily, take note that the gold and silver prices shown are subject to change without prior notice and may be different at the time of actual transaction. The UOB gold price chart is useful for when you want a quick glance at the prices to decide if you would like to trade. For instance, the minimum quantity per transaction with a Gold Savings Account is five grams of gold. UOB’s gold price chart gives you an indicative price at which the bank is buying or selling one gram of gold that day. If you’ve struck the lottery or gotten a fat bonus and are interested in getting some gold bars, UOB’s gold price chart shows you how much these gold bars may cost on that day — and there are plenty to choose from. Earn higher interest rates on your savings with the Citi Interest Booster Account when you sign up for a Citi Plus Account, to fund your next high-tea treat! Back to top SingSaver Exclusive Offer: Receive S$20 cashback when you open and fund S$100 into a moomoo Cash Plus Account and hold the balance for 30 days. Valid till 31 December 2022. T&Cs apply.In addition, enjoy a guaranteed return of 5% p.a. for 3 months when you make a subscription between $100 to $10,000. T&Cs apply.Plus, apply for this product and score 1x entry in our Score Big Grand Lucky Draw, where you stand to win your share of over S$30,000 worth of exciting prizes! Valid till 18 December 2022. T&Cs apply.Apply NowHow to buy gold from UOBUOB makes it easy for you to shop for different types of gold products online or in person. Gold savings accountThe UOB Gold Savings Account lets you buy and sell gold conveniently without physical delivery. Here are the steps to follow:
Gold bars and gold bullion coinsExisting UOB Personal Internet Banking users can buy gold bars and gold bullion coins online at their convenience. Do collect the gold piece(s) in person at UOB Main Branch within five working days from 9.30am to 4.30 pm to avoid late collection charges. You don’t need to have a UOB account to buy gold bars and gold bullion coins. You can purchase these gold items at the UOB Main Branch from 9.30am to 4.30 pm, Mondays to Fridays excluding public holidays. Gold certificatesYou can purchase gold certificates at the Gold Counter of UOB Main Branch from 9.30am to 4.30 pm, Mondays to Fridays excluding public holidays. In case you’re wondering, the gold certificates are sold in multiples of one kilobar of 999.9 fineness. Each gold certificate is subject to a maximum of 30 kilograms. Back to top UOB fees and chargesType of gold investmentFees and chargesGold Savings Account- Service charge: 0.25% p.a. of the highest gold balance each month, subject to a monthly min charge of 0.12 grams of gold- Early account closure fee: S$30 (subject to GST) if you close the account within six months from account opening date Gold bars- Late collection charge: S$5 per kg per day; S$2 per piece per day for small bars - Note: Gold bars must be collected in person at UOB Main Branch within 5 working days of online order placement Gold bullion coins- Late collection charge: S$2 per piece per day - Note: Gold bullion coins must be collected in person at UOB Main Branch within 5 working days of online order placement Gold certificates- Flat S$5 certificate fee - Service charge: S$72 per kilobar per annum - Note: Certificate fee and service charge are subject to GST How else can you invest in gold in Singapore?There are many ways you can go about investing in gold, apart from purchasing gold bars, bullion coins, gold certificates, gold jewellery, gold ETF and gold stocks. Case in point: the Hugo Gold Vault lets you buy gold starting from as little as S$0.01, subject to a nominal fee of 0.5% per transaction. There are even more complex gold investment products such as Gold Linked Notes (GLNs), gold options and futures available to sophisticated investors, too. Remember, all investments carry risk. Compare Brokerage For SG Stocks Compare Brokerage For US Stocks Start managing and saving money like a pro with SingSaver’s weekly financial roundups! We dole out easy-to-follow money-saving tips, the latest financial trends and the hottest promotions every week, right into your inbox. This is one mailer you don’t want to miss. What is the most trusted place to buy gold and silver?APMEX should be your first stop. However, if you value an exceptional overall customer experience, you should check out JM Bullion. If you're most concerned about pricing, few gold dealers can beat SD Bullion. Many gold investors diversify by buying from several sources.
What is the best way to buy gold and silver?You can purchase gold bullion in a number of ways: through an online dealer such as APMEX or JM Bullion, or even a local dealer or collector. A pawn shop may also sell gold. Note gold's spot price – the price per ounce right now in the market – as you're buying, so that you can make a fair deal.
Where is the most trusted place to buy silver?Here are the top choices for 2022:. SD Bullion.. American Precious Metals Exchange (APMEX). GoldSilver, LLC.. Silver.com.. Birch Gold Group.. JM Bullion.. Money Metals Exchange.. Golden Eagle Coins.. What is the most reputable company to buy gold from?Best Places to Buy Gold and Silver Online. BGASC. Buy Gold and Silver Coins (BGASC) is one of the largest and most trusted precious metals dealers in the US. ... . Birch Gold Group. ... . APMEX. ... . Silver Gold Bull. ... . BullionMax. ... . JM Bullion. ... . Money Metals Exchange. ... . SD Bullion.. |
Where is the best place to buy gold and silver
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