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Gold Investment 101: Investing in Gold in Singapore
by Business Listings EditorPhoto credit: canstockphoto
Gold is one of the most precious metals we have on the planet today. Since gold is a valuable metal, many investment professionals advise their sophisticated investors to buy gold to secure their wealth well into the next generation.
Unlike equities and property, the value of gold is independent of many economic factors, making it also a great way for anyone to diversify his or her portfolio.
Here are tips to get you started on investing in gold in Singapore:
1. Make use of online gold dealers/ retailers
Thanks to advancements in technology and access to the Internet, it is now possible for practically anyone around the world not only to learn about gold trade but also participate in the world market via online trading.
The first step to online gold trading is to understand all the services that a dealer offers, including trading fees and other entailed costs. Some online gold traders in Singapore include the Singapore Gold Coins Investment PTE, the Bullion Star,the UOB group, and Gold Silver Central.
Of course, just like any good investor, you also need to make your own due diligence in understanding the market trend of anything you are thinking of buying or selling.
Lastly, always make it a habit to check the spot price of gold to determine if you are getting a good deal.
2. Start with gold bullion bars or coins
It is possible and much cheaper for investors to buy gold bars and coins from professional precious metals dealers in Singapore.
These coins and bars come at a fraction of the value of gold in the market. The prices of these coins and bars follow the prices of gold in the world market, making them not only a great investment tool, but—more importantly to some people—is something tangible.
You can buy these coins or bars in Singapore at the UOB Main Branch at 80 Raffles Place or at any of your preferred and trusted online gold dealers. At this point, you should have a reputable gold dealer in mind to conduct business with.
Aside from checking the maker’s valuable hallmark to test for a genuine gold product, it is important to keep in mind that the higher the purity grade, the more expensive it is.
Another advantage of having investment-grade gold in the form of coins and bars in Singapore is that it will not attract stamp-duty or taxes, unlike in many other countries.
3. Securing your wealth in physical gold
Physical gold is a great way to secure wealth since unlike currencies, all countries in the world readily accept gold. It has a universal standard value, and almost all central banks hold physical gold.
But contrary to popular public opinion, physical gold is not so much an investment, but a form of financial insurance. Preserving your wealth using gold is one of the surest ways of passing your wealth to the coming generations.
After many investors get gold in their portfolio, they have the confidence to start considering other forms of investment since their wealth is already secure.
4. Go for gold stocks / certificates
Much like the foreign exchange markets, an investor can set up a gold ETF (exchange-traded funds) account and start trading in the value of gold.
However, unlike the Forex market, the leverage ratio for gold is much higher, and of course, the profits and losses are much higher as well. Investors get funds through tracking the prices of gold, and they do this through a broker who will open an account for them. There is usually an annual subscription fee for trading, which is about 0.5% of your total investment.
In sum, good 'ol gold is still a pretty good and safe investment and way to secure wealth, but still always remember to be discerning when investing, and don't get greedy. Good luck and happy investing!
Visit Crown Gold to get started on your Gold Investments. Prefer to invest in gold jewellery perhaps? Check out SgFave's jewellery shop business directory to find jewellery shops in Singapore. For other jewellery-related stories, check out our jewellery consumer guide.