A beginner’s guide to buying gold in Singapore

A beginner’s guide to buying gold in Singapore

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A beginner’s guide to buying gold in Singapore

Buying gold can be challenging, especially when you don’t know where to start. You may not be aware of the gold prices or even know about the shops that sell gold. Gold can be a beneficial way to diversify your portfolio. It is a relatively rare asset and whose value doesn’t move in line with assets like properties or equities.

But did you know you should consider buying silver and gold bars coins in Singapore as it is the cheapest in the world?  

How to invest?

While gold is one of the world’s earliest forms of currency and investment, there are now numerous ways to hold this precious metal for investment purposes. Investors should first decide why they want to own the gold.

Why invest in physical gold?

Gold offers the investors heaven in investment. The popularity of gold is highly evident in times like economic uncertainty, where the stock markets demonstrate high volatility levels.

Why is it the cheapest to buy gold and silver in Singapore? And where?

Singapore happens to be the cheapest place in the world when it comes to buying gold and silver. We all know gold is a solid investment, and silver is a valuable industrial precious metal. It is trendy to buy and hold. With high Goods and Service Taxes (GST), Singapore charges no tax on pure bullion gold and pure bullion silver. One can buy gold at 0% tax. Most countries in the world charge GST; and impose a luxury tax on gold and silver, but only Singapore and Hong Kong impose no tax on gold and silver.

Jewellery shops

Many jewellery shops in Singapore sell gold and silver jewellery with numerous variations at affordable prices. They have gold and silver bars in their shops. Although, craftsmanship and branding for jewellery are expensive.


Many pawnshops deal in gold and silver bars and coins from people who have pawned them or sold their precious metals.

Bullion shops specialised in gold, silver bullion bars and coins.

We have seen a rise in the number of bullion shops specialising in selling variations in silver, gold, coins collections, and silver or gold bullion bars and coins. These shops do not charge a premium as they are ‘’non-jewellery’’ shop and do not focus on branding and craftsmanship.

Where can you invest in? Your ultimate guide to buying gold in Singapore.

Bullion, bars, and coins

Bullion, bars, and coins are some of the best options for owning physical gold. However, the money it takes to transition the raw gold to a coin is often passed on to the end customer. Also, most gold dealers add a markup to the prices to compensate for their role as middlemen. Perhaps, for investors who want to invest in physical gold, the best option is to buy gold bullion directly from the U.S. Mint. It ensures that you are dealing with a reputable dealer.

Gold certificates

Another way to get direct exposure to gold without owning it in physical form is to hold gold certificates. They are notes issued by a company that owns gold. These notes are usually for unallocated gold. Although there is no specific gold associated with the certificate, it has enough to back all outstanding credentials, according to the company.

Gold savings account

With a gold savings account, one can purchase gold without having it physically. Banks allow a generous minimum amount that helps people invest in gold weighting at just 1 gram. Buying gold with this method is quite easy as you can just pay your bank with checks, cash, or deducting the due from the bank’s existing accounts. If you want to purchase gold using this method, it is recommended to use the UOB Gold Savings account. OUB Gold savings account offers some best gold conversion rates in Singapore.

Semi-numismatic and numismatic gold coins

Numismatic or rare older coins are bought not just because of their precious metal content but also for their historical, aesthetic appeal and rarity. They are leveraged to the gold prices, meaning that the prices of these coins will increase faster than that of the gold in a bull market and decreases when gold is in a bear market. The British gold sovereign is the most widely traded semi-numismatic gold coin in the world.

Buy gold-related stocks

Like gold miners or gold producers, companies directly linked to gold are another way to hold gold, as they tend to mirror its performance. However, they are vulnerable to stock market swings.

Buy alternatives

There are various alternatives, such as foreign exchange trades, or gold-backed cryptocurrencies, to buy into gold. Although, these generally for more experienced investors.

Is it the right time to buy now?

With prices already at multi-high levels, the entry costs are pretty high. This raises the question of when is the right time to buy? However, Albert Cheng, the Singapore Bullion Market Association CEO, said that the question from ‘’when’’ should be changed to ‘’how much.?’’ He said, ‘’There is no good time to buy gold.’’, who said that he sees the asset hitting $2,000 a paper ounce by the end of the year.

Thus, Cheng suggests that “‘Every investor should have some gold in their portfolio.’’

Why should you invest in gold?

There are multiple reasons to add gold to your portfolio, even if you have other assets, even when you may have some other investments like stocks. Gold is traditionally thought of as a ‘’safe haven’’ in times of economic crisis.

You can expect stock and property prices to be depressed in a recession. On the other hand, gold prices rise in economic and political uncertainty. Thus, it is a great way to diversify your investments in order to spread out the risk.

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