My father has garnered a sudden interest in Gold Investment due to the upcoming QE3 (maybe) by the U.S. since the election is coming...
And so i went to research online for all the information about "How to invest in Gold in Singapore"... Hope can share with all of you.. I welcome any feedback or comments so i can constantly update the post for the benefit of all :)
First of all, i wish to say something: Investing in Gold is GOD D*mn Expensive for Private Individual Investors! All the gold exchanges out there has always been for accredited investors or big hedge/ mutual funds or governments who buy/sell in bulk as they have the purchasing power.
I found a very conclusive report of seemingly all the possible ways to invest in Gold and here is how it looks like:
Although it may seem that there are many ways to capitalise on the possible gold uptrend [e.g. when U.S. starts printing money due to the elections]; high barriers to "investment" such as huge capital required and lack of information.
Nevertheless, in my post, i seek to find out avenues to solve the 2 main problems people like you and me face:
- Expensive - Gold Bars/Certs cost $60K+ onwards and are out of reach to normal people.
- Limited Ease of Buying/Selling - Even if you can buy Gold Coins or Certs, you pay High Premiums (selling to UOB, pawnshops or collector's shops) or will likely face difficulty in selling the Gold on established portals.
Based on my own opinion, i narrowed down to a few methods on how Retail Investors can possibly HUAT in Gold!
You can easily buy and sell Gold Bullion Coins, Gold Bars and Gold Certificates at UOB Main Branch, which is located at UOB Plaza, 80 Raffles Place. Or just create a Gold Savings Account with them. Link -> http://www.uob.com.sg/personal/investments/treasury/precious_metals.html
However, based on the various feedback i have seen online, UOB is not really good. When you purchase Gold Bar from them, UOB charges a flat fee of $200+ and $4k+ is given to the govt as GST!
- Gold Trading
I reckon that it will be similar to forex trading with leverage ratio much higher but i have never tried it before. Link -> http://www.avafx.com/goldlp-en/?tag=goog-Singapore2&ds2=how%20to%20invest%20in%20gold%20in%20singapore@e@15018349033@goldlp-en&gclid=CLfIwKedo7ACFcsa6wodIXqHWA
Any kind soul who have experience in this can leave a comment and share with everyone...
- BullionVault.com [My favourite research!]
BullionVault functions just like the normal stock exchange but its for gold! I believe buying/selling is much simpler here and the spread is much tighter = more profits for you! And if you take a closer look at the Red Box, you can even buy soooooo low quantity at $10,000 or lesser!
Few avenues will allow such a thing... and i have checked that BullionVault is a Safe and endorsed website by the World Gold Council which has $2.2 Billion GOLD HOARD! lol...
Check it out now -> http://www.bullionvault.com/gold_market.do
- Gold Stocks
Many people may have contemplated on buying Gold ETFs like SPDR Gold Shares or iShares Comex Gold Trust But... i think they are just too expensive for people to own one lot with that huge capital injection.
Thus, i still prefer gold stocks like LionGold, Interra Resources or even Newmont listed on U.S. stock exchange. Easy to buy and sell and transparent as always!
- Gold / Mineral Focused Mutual Funds
There have been more mutual funds focusing on Gold ever since the major currencies are going hay-wire and Gold seems the best hedging tool available. However, the management fees are usually high at 5% so please do take note as well.
Hope you like my Hard Work in delivering this Post and can support / "LIKE" my Facebook page @ www.facebook.com/kissinvesting! Thanks!