Guide to Buying Gold in Singapore

Gold bars

Gold has historically been regarded as one of the most reliable investment options available. It is a highly valuable asset that can pay strong returns in the long run. That said, there are several factors that you need to consider before you invest in gold.

During the pandemic, everyone was trying to look for ways to diversify their portfolio and secure their investments. Gold played a big role in making this possible. It peaked at US$ 2070.05 an ounce in Singapore in August 2020, owing to the excess demand. This was the highest ever price since 2011.

As of now, the price of gold per ounce has gone down to US$ 1712.43. Despite that, gold is considered to be one of the safest forms of investment in Singapore. Even if the market remains volatile, gold helps keep your investment safe.

Here are a few basics you need to know before you decide to buy gold in Singapore.

  • Most people invest in gold since it is a safe investment. It allows investors to safeguard themselves against inflation and crisis.
  • You can diversify your portfolio of investments by buying gold.
  • When the economy starts to boom, gold doesn’t usually perform at par with the other assets.
  • There are several other hidden costs attached to an investment in gold.

Why is Singapore the Best Place to Buy Gold?

Singapore is undoubtedly one of the best places to buy gold in the world. Here is why:

  • Taxation Structure

Singapore is one of the cheapest places in the world to buy gold. Most countries charge a hefty luxury tax on gold. This is not the case if you buy gold in Singapore as there is no tax, making it much more affordable as compared to other parts of the world.

  • Well Connected

The country’s geographical location means it is accessible from anywhere in the world. This is a huge advantage for those who buy and sell gold very frequently. It allows for an unobstructed flow of these metals, allowing for successful business operations.    

  • Less Corruption

Singapore is also known to be one of the least corrupt countries in the world. It was ranked 4th on the Corruption Perception Index by Transparency International in 2021. This can help assure you that your investment in gold will be extremely safe here.

The government of Singapore is also working on further strengthening the country’s technology base, which means that things are on their way to becoming even better.

  • Storage Facilities

There are several logistical solutions for gold storage in Singapore. Recent advancements have allowed people to track their gold bullions as well. Not just that, but they have complete right over legal ownership of their gold bullions, and owners can audit or withdraw their assets as they deem fit.

Where to Buy Gold from in Singapore?

When you’re looking to buy gold in Singapore, you want to buy it from the most trustworthy place possible surely. Not just that, but you also want to get the best rates possible.

So here are a few places that you can buy gold from in Singapore:

  • Jewellery shops

You can get several varieties of gold at jewellery shops, depending on what you want. While craftsmanship is expensive, you should still be able to buy gold, depending on what you are looking for.

  • Pawn Shops

In pawn shops such as ValueMax Pawnshop, you can get gold bars abd coins from those who have sold their precious metals.

  • Bullion Shops

Bullion shops are becoming increasingly popular. These specialize in different variations of gold. The best thing about bullion shops is that you can get gold at better rates here since they aren’t classified as ‘jewelry shops.’ They don’t charge a premium since they don’t focus as much on branding and craftsmanship.

Where to Invest?

This is one of the most important questions that people have. Once they have purchased gold, they want to know what the best investment is. Here is when you can invest:

  • Bullion, Bars, and Coins

You can invest in bullion, bars, and coins when you buy physical gold. This is known to be one of the safest forms of investment. But you need to make sure to buy these from a reputable dealer. Most gold dealers charge a certain amount for their service as middlemen. So you need to make sure to get the best price.

  • Gold Certificates

If you don’t want physical gold, you can buy gold certificates. Companies that own gold can give you gold certificates instead of physical gold. These certificates are easier to store compared to their physical counterparts.  

  • Gold Savings Account

This is also one of the best options if you don’t want to buy physical gold. Instead, you can just create a gold savings account. Banks allow you to invest as low as 1 gram of gold using these accounts. You can pay with cash or checks. The UOB gold savings account offers the best conversion rates.

  • Gold Coins

Buying gold coins is also one of the most popular options you have. These are most popular for their history and their aesthetical appeal.

When to Buy Gold in Singapore?

While gold prices in Singapore aren’t very low yet, you should still consider buying gold and adding it to your investment portfolio. Most experts foresee gold prices hiking up by the end of the year, which is why they suggest that you should invest in some gold, at least as of now.

Of course, most people tend to shy away, looking at the market’s volatility. The truth is that this shouldn’t stop you from investing.

All investments have some degree of risk involved. You need to focus on diversifying your portfolio as much as possible to avoid this and gold is one of the best investments in Singapore to make that happen.

That said, you need to make sure that you buy it from trustworthy places. Moreover, if you hold physical gold, then you need to use a safe deposit box to secure your investment. Making the wrong choice here or rushing into an investment could compromise your financial security. 

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