How to Start Investing in Gold in Singapore

There is something undeniably alluring about gold. Beyond its gleam and grandeur, gold carries a timeless quality, a tangible piece of wealth that transcends generations. Whether worn as jewelry or stored as bullion, it is an asset that often endures when markets falter. But for those looking to begin investing in gold in Singapore, the questions remain: Where should you start? Should you buy gold bars or gold jewelry, and which form truly protects you against inflation?

Gold’s enduring appeal lies in its reputation as a safe haven. When uncertainty shakes the global economy, as seen during the 2008 financial crisis or the COVID-19 pandemic, investors frequently turn to gold to preserve value. It is the metal that shines brightest when confidence in currencies fades.

One of the most traditional ways to invest in gold is by purchasing physical bullion, which refers to investment-grade gold in the form of bars, coins, or ingots. Each bar typically bears the stamp of its manufacturer along with its weight and purity, usually 99.5 percent or higher. Coins, on the other hand, often carry artistic engravings or collector value that can push prices above the metal’s intrinsic worth. In Singapore, buying bullion comes with a tax advantage because gold that qualifies as an Investment Precious Metal (IPM) is exempt from the Goods and Services Tax (GST). Reputable sellers include UOB Gold Bullion, BullionStar, and GoldSilver Central.

Gold jewelry offers another route, though it is not quite the same as investing in pure gold. Jewelry comes with added costs such as craftsmanship, branding, and design premiums, which dilute its value as an investment asset. It can still serve as a portable store of wealth, but it is not GST-exempt and should not be mistaken for a direct hedge against inflation.

Image Credits: unsplash.com

For investors seeking something more dynamic, gold can also be approached as a currency-linked investment. Some structured products allow you to treat gold as a tradable currency known by its code XAU. In this setup, you agree on an investment term, a base currency such as USD or SGD, and a target conversion rate. Depending on gold’s performance against your chosen currency, your returns may be paid in cash or in gold itself. The potential for higher yields makes this approach attractive to those comfortable with some risk and the idea of being repaid in ounces rather than dollars.

If you prefer not to store or insure physical gold, exchange-traded funds (ETFs) and unit trusts offer a more accessible alternative. These funds mirror gold’s market performance without requiring you to hold the metal. ETFs tend to passively track gold prices, while unit trusts are actively managed by professionals who buy and sell gold-related assets on your behalf. They trade easily on the stock exchange, making them a flexible and liquid way to diversify your portfolio. Still, investors should review management fees and ensure that the fund is operated by a reputable institution.

Another indirect approach is through gold mining stocks. Companies such as Barrick Gold (GOLD) and Newmont Corporation (NEM) give investors exposure to the gold industry without owning the physical commodity. Their share prices often move in tandem with gold’s market value, though management quality, operational efficiency, and geopolitical risks can introduce additional volatility.

Should you buy gold in Singapore? Absolutely, but with a clear understanding of what you are buying and why. Gold can act as an anchor in turbulent times, a hedge against inflation, and a stabilizing force in a diversified portfolio. Yet it is not without its challenges. Physical gold lacks liquidity compared to ETFs or stocks, and its price can swing sharply in response to economic shifts.

Ultimately, investing in gold is about balance. It is not meant to replace other assets but to complement them, serving as a steady counterweight when markets stumble. In a world of uncertainty, gold remains one of the few investments that appeals as much to the heart as to the head, a rare blend of beauty and financial resilience.

Image Credits: unsplash.com

Disclaimer: This article is for general information only. Readers should research gold investments in Singapore and seek professional advice before investing. Remember that gold is best viewed as a way to diversify a portfolio, not as the sole safeguard for wealth.

Sources: 1 & 2

 

Read More...

Why Could Bitcoin Be a Better Investment Than Gold?

Ever since Bitcoin came around, the debate between the digital asset and gold has been ongoing, trying to determine which is the better store of value. Proponents of each asset have numerous reasons why they believe one is better than the other. The interesting thing is that both share some traits like scarcity, which has led to Bitcoin being referred to as digital gold.

In terms of price, Bitcoin seems to have the upper hand over gold, with its value ten times more than that of its physical counterpart. The digital asset currently trades above $18,000 after gaining 18% over the past week, while gold prices sit at around $1,800. Bitcoin is on pace to beat it’s all-time high of $20,000 attained towards the end of 2017, and the latest bull run seems to have spiked the number of Google searches on how to trade Bitcoin. Unlike conventional cryptocurrency exchanges, PrimeXBT allows users to trade CFDs for BTC and profit from any positive or negative price changes. CFD products allow one to speculate on financial markets like crypto without having to own the underlying asset.

Billionaire Investor Who Loves Bitcoin

Recently Stanley Druckenmiller, a former hedge fund manager and billionaire investor revealed he owned a portion of his investment portfolio in BTC before explaining why it could be a better investment than gold.

Druckenmiller founded Duquesne Capital back in 1981 and ran it for almost three decades before shutting it down in August 2010. Within the period, he managed money for prominent individuals like George Soros, and together they made massive profits betting against the British pound in 1992.

Speaking to CNBC last week, the investor worth $4.4 billion, according to Forbes, said that even though he was “a bit of a dinosaur,” he had opened up to the idea that BTC could be a better asset class than gold with lots of attraction as a store of value.

He added that since it was created around 12 years ago, Bitcoin has picked up more stabilization with each passing day. Interestingly, other than BTC, Druckenmiller claims to have a lot of gold in his portfolio, more than BTC.

JPMorgan Believe Bitcoin Will Thrive

In a note to investors recently, JPMorgan claimed Bitcoin competes better than gold as an alternative currency. BTC is up 157% since the beginning of the year, with its latest rally fueled by the PayPal announcement. The company will allow its users to buy, sell, and hold the digital asset in their accounts in a few weeks. PayPal noted that more than 26 million merchants using the platform would have the ability to accept crypto as a funding source.

JPMorgan believes BTC can compete against gold because of its attractiveness to millennials, who are set to become a more important participant in the market over the coming decades. Therefore, their preference for BTC over gold should set up the cryptocurrency for success. Still, BTC has a long way to go if it’s to match the gold market, which is valued at around $9 trillion.

Currently, the Bitcoin market cap is around $330 billion. And if it’s to gain tractions as an alternative currency to gold, JPMorgan sees its price doubling or even tripling in the near future, making the current price of $18,000 modest.

Besides being a store of value, crypto drives its value for its utility as a means of payment. According to JPMorgan, the “more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value.”

BTC Is Better On Some Measures

Bitcoin is a clear winner compared to gold when it comes to portability. It’s a digital asset that exists on computers as code; therefore can be quickly sent and received to any corner of the world as long as there is an internet connection. Banks do not control it, so it’s easy and fast to send and receive payments in the asset across borders.

On the other hand, if you don’t hold the gold yourself accessing it is a problem, and even if you have it, moving it around can be inconvenient. Additionally, there have been cases where the government has tried to ban privately owning gold like it was the case in the US for 41 years. Such censorship can be inconveniencing and isn’t possible with an asset like Bitcoin that isn’t controlled by anyone in particular.

 

 

 

Read More...

Is Jewelry A Wise Investment?

It is Christmastime and people are more eager to purchase gifts that have lasting value. For some people, that timeless gift often turns out to be an heirloom piece of jewelry. Grandparents often pass down their jewelry in the hopes that their grandchildren can “sell it one day” when the need arises. I cannot say that it has not crossed my mind. Then again, I find it difficult to sell the ring that my late grandparents have given me.

Buying an original piece of jewelry with a rich history from a family member or a friend can be the middle ground when it comes to heirloom pieces. Nonetheless, jewelry and gold can be a wise investment.

BUY SOMETHING TIMELESS

If you are going to buy jewelry as an investment, ensure that it is something you enjoy keeping and wearing. I recently bought a Nina Ricci necklace, which I plan to pass down to my future daughter. It is delicate, romantic, and simple. She may not be able to sell it, but it can be a part of her beautiful collection.

Avoid overpaying for a piece of jewelry as commissions and fees can be high. It will be difficult for you to break-even, if that happens.

CONSIDER THE VALUE AND PRICE

There are companies willing to buy back your jewelry at the real-time value, less its 10% buyback fee as they will melt it and transform it into a new jewelry. Other companies are willing to offer a price close to the value of the pure metal in your jewelry. Do your research.

There are laws regulating the purity stamp on the metal. It is best to get an appraisal from a reputable jeweler to examine the quality and the design of your gems and precious metals.

ACKNOWLEDGE THE POSITIVE HISTORICAL TREND

Unlike coins and paper currency, gold has managed to increase its value over time. Its price has consistently risen every year since 2001. While gold prices do not shoot up dramatically, the general trends remains to be upward. Hence, have a long-term investment mindset.

KNOW THAT PRICES CAN BE VOLATILE

Much like any other investments, the jewelry’s value can fluctuate wildly. The most obvious difference between a pair of gold earrings and gold bullion is that you cannot wear the latter. Treating jewelry as an investment can get tricky. Profits on the sale of gold and jewelry are taxed.

You might pay a premium for buying jewelry made of pure gold. You see, some buyers prefer if they can wear their gold.

DIVERSIFY YOUR PORTFOLIO

The key to diversification is to find investments that do not closely match each other. History has proven that gold is negatively correlated with stocks and other investment instruments. For instance, stocks boomed in the 1990s, but gold faltered. In 2008, investors migrated to gold while the stocks dropped substantially in value.

Image Credits: unsplash.com

Proper diversification entails combining stocks, bonds, golds, jewelry, and other assets. Producing a diverse portfolio can reduce the overall volatility and risks.

Sources: 1 & 2

Read More...

How Everest Gold Compares Most Favourably Amongst Various Platforms for Gold Investments

Gold prices have been on an amazing run in 2020. It has surged from USD 1,550 to reach USD 1,800  (Source: goldprice.org) in November 2020. Increasingly, investors also recognise the importance of having gold in their portfolios. When it comes to gold investments, investors are spoilt for choice since there are various platforms available in the market.  We researched across the various platforms to determine the most cost-effective and efficient way of investing in gold.

Comparison of Various Platforms for Gold Investments

Here is a comparison of the common platforms available for gold investments on key metrics such as transaction fee, storage fee, etc.

Everest Gold

Everest Gold’s digital trading platform is the first-of-its-kind to introduce real gold bullions broken down into digital gold units called Everest Gold Units (EGUs), that allows gold investors to trade from as low as 0.01grams. Every EGU is 100% backed by real gold and matched on a 1:1 basis.  Investors can accumulate their EGUs and exchange them for physical gold.

The minimum capital to trade starts from USD 0.60, the equivalent of 1 EGU, making it highly affordable for everyone. Moreover, its users enjoy fairer prices without paying high premiums commonly levied by retail banks. Fees are non-existent since there is no transaction fee and storage fee. The combination of no fees and fair price offers investors the chance to maximise their profits. This stands in steep contrast to transaction and storage fees typically charged by retail banks and bullion dealers.

Everest Gold platform is also highly accessible and allows investors to trade gold 24/7 on the mobile app. Such instantaneous liquidity is another attribute not usually offered by traditional retail banks and bullion dealers.

Everest Gold is available for download on Android, iOS and accessible from desktop.

For more information, visit https://everestgold.sg

 

 

Read More...

Importance Of Gold In Your Portfolio And How You Can Trade Gold With No Transaction Fee

There’s probably never a better time than now to invest in gold. Gold price has been on a steady growth path not just in the past 5 years. This year alone, price of gold has increased 25% from US$1,520 to US$1,900 beginning October (Source: Goldprice.org). This shows that the average man is capable of growing their wealth by investing in gold. How gold has performed recently underlies the importance of having gold in your investment portfolio.

Portfolio Diversification

Countless academics and investment gurus have reiterated the importance of portfolio diversification. Gold serves this purpose very well as it has a historical negative correlation to stocks and other financial instruments. As recent as the last economic crisis, equities fell across the board while gold performed strongly as investors flock to safe-haven assets. Gold as an investment is not closely correlated to other financial instruments and having gold in your investment portfolio reduces overall volatility and risk.

Hedge Against Inflation

While the price of gold may be volatile in the short term, it has always maintained its value over the long term. This underlies its utility as a good store of value. Gold price tends to rise when the cost of living increases. Therefore, gold serves as a very useful hedge against inflation and erosion of major currencies. This advantage of gold is so ingrained that it is very common for gold to be passed on and wealth preserved from one generation to the next.

Buy and Sell Gold With Just A Few Clicks on Everest Gold

Image credits: Everest Gold

Having outlined the importance of having gold in your investment portfolio, you can actually start buying and selling gold with just a few clicks on Everest Gold app—a digital gold trading platform in Asia that is backed by 100% real gold. It is a ‘first-of-its-kind’ trading platform that allows retail investors to safely buy and sell gold online. Here are some of the advantages of trading gold on the Everest Gold platform:

  • Hassle-free trading. Trade anytime, anywhere at your convenience.
  • Highly accessible. The minimum to trade at only 0.01 gram.
  • Highly affordable. Investors enjoy fairer prices than gold traded in banks without paying high premiums.
  • Zero transaction fee. No hidden costs.

With no transaction fees payable and a higher buy-in price, you can massively improve your investment returns simply by trading gold on the Everest Gold platform today.

Moreover, test your skills at Everest Gold’s trading competitions and stand to win prizes worth a total of more than $37,000 CapitaVouchers! The next round of competition will be held on 23-29 October 2020. More information can be found here.

Everest Gold is available for download on Android, iOS and desktop.

For more information, visit www.everestgold.sg .

Everest Gold will be giving 300,000 reward points (worth S$40) for every new sign-up upon successful account verification. Reward points can be exchanged for gold during Gold Subscription Events. Enter referral code “EGGOLD” when you register for your Everest Gold account. Promotion valid till 31 October 2020.

 

 

Read More...