Gold has been regarded as the best form of investment and one of the most precious metals for centuries and is the best investment asset in times of uncertainty and market volatility. During the COVID-19 pandemic, investors rushed to invest in gold, pushing the gold prices to a record high in history at US$2,063 an ounce in 2020.

Gold price is currently at US$ 1,642.76 after its increase in prices due the political uncertainty thanks to the Ukraine crisis. Gold makes an attractive investment option due to its low-interest rate environment and excellent store for value.

Current Sweet Spot Price for Gold

The current gold price is US$1,665.70.

UOB Gold & Silver Price Chart

The price rates change daily and could change without any notice. Below here is a sample of  the UOB gold and silver prices table as of the date of writing:

Rates As of  31October 2022

DESCRIPTION CURRENCY UNIT BANK SELLS BANK BUYS
ARGOR CAST BAR SGD 100 GM 7545.00 7432.00
CAST BARS SGD 1 KILOBAR 74949.00 74340.00
GOLD CERTIFICATE SGD 1 KILOCERT 74949.00 74340.00
GOLD SAVINGS A/C SGD 1 GM 74.94 74.34
GOLD BULLION COINS SGD 1 OZ 2405.00 2311.00
GOLD BULLION COINS SGD 1/2 OZ 1244.00 1155.00
GOLD BULLION COINS SGD 1/4 OZ 635.00 577.00
GOLD BULLION COINS SGD 1/10 OZ 279.00 230.00
GOLD BULLION COINS SGD 1/20 OZ(GNC,SLC &GML) 166.00 114.00
PAMP GOLD BARS SGD 100 GM 7592.00 7432.00
PAMP GOLD BARS SGD 50 GM 3835.00 3715.00
PAMP GOLD BARS SGD 20 GM 1568.00 1484.00
PAMP GOLD BARS SGD 10 GM 816.00 741.00
PAMP GOLD BARS SGD 5 GM 432.00 369.00
PAMP GOLD BARS SGD 2.5 GM 238.00 183.00
PAMP GOLD BARS SGD 1 GM 105.00 72.00
PAMP GOLD BARS SGD 1 OZ 2390.00 2310.00
PAMP GOLD BARS SGD 1/2 OZ 1216.00 1153.00
SILVER PASSBOOK ACCOUNT SGD 1 OZ 27.48 26.66

Why You Should and Shouldn’t Invest in Gold

Gold is the best investment option that will buffer you against market volatility and has high liquidity. Here are reasons why you should consider investin in gold.

The Pros

1. Gold Is a Countermeasure to Inflation

Money loses value as time passes as a result of inflation. On the other hand, gold does not suffer from inflation. On the contrary, it even increases in value in economies with rapid inflation, which makes gold a really wise investment choice. This leads us to the second reason…

2. Gold Is a Foolproof Investment

Gold is much safer than currency in terms of holding their values. They are even more better when you diversify your portfolio using gold since it is not directly related to other assets like properties, stocks, and fiat money. This means that even if those assets perform bad, gold will remain unaffected.

3. Gold Is Becoming Even Rarer

There are huge demands for gold in global markets such as India and China, which further drives the price of gold even higher. As such, gold is an ever-attractive candidate for collecting or as an investment asset.

The Cons

1. An Additional Cost of Storage

Purchasing physical gold comes with the problem of storage. You will incur an extra cost for keeping the gold safe.

2. Volatile Prices

Gold prices are highly volatile in the short run.

3. It Needs A Lot of Patience for the Best Returns

Gold prices go down when the stock market goes up. Some investors often panic when this happens, but the gold prices finally settle down after a while.

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How to Buy Physical Gold with UOB?

UOB is currently the only bank in Singapore that sells and purchases physical gold, issues gold certificates, and offers gold and silver savings accounts. You will not incur GST when you purchase gold through UOB since it qualifies as IPM.

1. Buy Physical Gold

Purchasing gold physically is the classic way of purchasing and investing gold. However, there are some factors you need to consider when buying gold in a physical store. First, stores generally sells their gold at a high markup price, which makes it really easy to purchase gold that is way higher than their market value.

If you want to purchase physical gold, you can buy it in bullion coins or gold bars. You can also order it online or collect it from UOB Main Branch in person within five working days of the purchase.

You can also purchase gold certificates in person at UOB Main Branch in kilo bars and up to a maximum of 30 kilo bars of gold per certificate. Gold certificates do not have an expiry date but can be exchanged for physical gold or cash.

 2. Gold Certificates

You can also invest in gold in the form of gold certificates. The gold certificates indicate the volume of gold you have purchased, but the actual gold is kept safely by a UOB. However, you will incur extra charges with each gold certificate: They include:

  • An annual administration fee of S$72 for each kilo bar of gold
  • A S$5 for every gold certificate

UOB gold is 99.9% in fineness, and the maximum gold for a gold certificate is 30 kilograms. It is important to note that you must have a UOB account for the fee deductions. You can transact online through UOB personal Internet banking.

3. Gold Savings Account

With a gold savings account, you can purchase gold without having the need to keep it physically. There are banks that allows a very generous minimum amount, allowing people to invest gold weighting at just 1 gram.

Buying gold using this method is easy since you can just pay your bank with cash, checks, or by deducting the due from your existing accounts at the bank. With that said, withdrawing your gold is also easy. You can just arrange for a credit in your bank account, allowing you to transfer your gold investments into cash sent directly in your accounts.

If you are going to purchase gold using this method, we recommend you to use UOB Gold savings account. UOB Gold savings account offers the best gold conversion rates in Singapore and other benefits.

Fees and Requirements

Gold products come with different expenses and charges. Here is a summary of the charges and requirements:

Gold Product Fees Requirements
Physical gold
  • All transactions are exempt from goods and sales taxes
  • Late fees applicable after 5 days of the agreed collection time
  • Late collection fees:
  • For kilo bars: S$5 per kilogram per day
  • Small bars and gold coins: S$2 per piece per day  
  • Buyer must collect the gold personally from UOB’s Main Branch
  • The gold in Kilo bars should be intact and sealed
  • Only gold from UOB is acceptable
  • Every transaction should be up to S$20,000
  • Each cashier’s order should be up to S$250,000
Gold Certificate
  • S$5 per gold certificate
  • Good and sales tax applies to both administration and certificate fee
  • Annual administration fee per kilobar
Each cash transaction is up to S$20,000
Each cashier’s order transaction is up to S$250,000.
A gold certificate holder should maintain a savings or current account with UOB for fee deductions.
A maximum of 2 joint holders for a gold certificate
Gold savings account (GSA)
  • An early account closure fee of S$30 applies if a GSA holder closes an account within six months from opening.
  • Monthly service charges: the higher of 0.12 grams of gold per month or 0.25% per annum on the highest gold balance (same as the highest silver balance of the Silver Savings Account) on the GSA in a calendar month
  • A Goods and Sales Tax in grams applies to the monthly service charges only and is deducted at the end of a year. 
The GSA balance cannot be converted into physical gold or gold certificates.
The minimum balance is 5 grams.
A minimum transaction amount is 5 grams per transaction.

Factors to Consider When Buying Gold

Gold plays an essential role in the recovery from stressful market conditions. Investing in gold is a great idea, but you have to consider a few things before investing.

Here are the critical factors you much consider before you invest in gold:

Research

Your research should include the right time you should invest in gold. You can get this information from investment news, financial publications, analyst’s findings, and industry websites.

You can also get reliable information from financial blog writers with expertise in gold investments. It is also essential to stay up to date with market trends since it helps in investment planning and ensures you have great returns.

Purity

The value of gold is determined by its purity. Pure gold is soft, and if it’s mixed with other metals such as copper, silver, and nickel, it is an alloy. Gold’s purity is measured in terms of karat. The higher the karat, the purer the gold. It has different grades ranging from 18-karat, 22-karat to 24-karat.

Budget

There are many options to consider when you want to invest in gold. However, the route you take is primarily determined by your budget. You can decide to invest in gold bars, gold jewelry, gold accumulation plans, gold monetization schemes, or digital gold.

A suitable investment will determine your earnings to an extent. If you have a high budget, you should consider investing in jewelry. However, if you are an investor who wants to start small passive income strategy, you can opt for the Gold Accumulation Plan.

Storage

Investing in gold comes with additional expenses like its storage. Consider setting aside some money for the bank storage locker when buying gold jewelry. 

However, if you invest gold via schemes, storage will not be needed. Gold monetization schemes carry the storage burden, and the government provides interest to the owners of the gold. Gold exchange-traded funds do not require storage since they are instruments traded in the stock market.

Liquidity

The main reason why most people invest in gold is its liquidity. It can easily be converted to cash from other investment options. It is, therefore, essential to consider the steps you will take if you decide to resale your gold and how to get the maximum return on your investment.

Frequently Asked Questions (FAQs)

1. Who Determines International Gold Prices?

London’s bullion banks determine international gold prices. These banks agree on a price to clear outstanding clients and in-house orders at a specific time every day. The London Bullion Market Association publishes the ‘Daily Price’ on its website.

2. What Factors Influence the Prices of Gold?

Different factors affect gold prices, including central bank monetary policy, supply, and demand, the performance of the stock markets, and bonds and inflation.

Closing

Gold is one of the best investment options. It has been one of the most liquid assets for centuries. There are different ways to invest in gold, including buying physical gold, a gold certificate, and savings accounts. It is important to consider the purity and how you plan to resale your gold for the best returns.

Key Takeaways

  • You can invest in various UOB gold products, including gold certificates, physical gold, and gold savings accounts.
  • You can use UOB’s Gold Savings Account to buy and sell gold easily.
  • You can purchase gold in physical form and non-physical form in Singapore.

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