How to Buy Gold in Singapore: Physical, Digital & ETFs

Gold has long captivated investors as a tangible asset and a store of value, offering stability during economic uncertainties. For those diversifying portfolios, understanding how to acquire gold is a key first step. This guide outlines navigating the gold market in Singapore.

Types of Gold Products in Singapore

Investors in Singapore can choose from various forms of gold. Physical gold includes bars, coins, and jewelry. Gold bars, often called bullion, are available in various weights, from grams to kilograms, and are valued for their purity and ease of storage. Gold coins, such as the Canadian Maple Leaf or Australian Kangaroo, are globally recognized and often carry collectible value in addition to their gold content. Gold jewelry, while aesthetically appealing, generally involves higher premiums due to craftsmanship and is not ideal for investment due to lower purity levels like 18K (75% pure) or 22K (91.6% pure), compared to 24K (99.9% pure) investment-grade gold.

Beyond physical forms, digital gold platforms allow investors to own a fractional interest in physical gold held in secure vaults, without direct physical possession. These platforms offer convenience, enabling online purchases and sales, and some provide options for converting digital holdings into physical gold. Gold Exchange Traded Funds (ETFs) are another popular option. These investment funds trade on stock exchanges and track the price of gold. When an investor buys a unit of a gold ETF, they purchase a share of the gold held by the fund, rather than the physical metal itself.

Some banks in Singapore offer gold savings accounts. These allow customers to buy and sell gold in gram denominations without taking physical delivery. These accounts provide a convenient way to invest in gold through banking platforms, with minimum purchase amounts as low as 0.31 grams or 5 grams, depending on the bank.

Essential Considerations Before Buying Gold

Understanding regulatory and practical aspects is important before buying gold in Singapore. The Goods and Services Tax (GST) generally applies to goods and services. However, an exemption exists for Investment Precious Metals (IPM). To qualify as IPM, gold must meet specific purity standards of at least 99.5% and be in a form tradable on international bullion markets, such as bars, wafers, ingots, or legal tender coins. This exemption reduces the overall cost of acquisition for qualifying products.

Secure storage is a key concern for physical gold owners. Options range from storing gold at home, which offers immediate access but carries security risks, to renting safe deposit boxes at banks or private facilities. Third-party vault services provide professional, insured storage solutions with advanced security measures. These services typically involve recurring fees, which vary based on the value and volume of gold stored.

Verifying gold’s authenticity and purity is important. Authentic gold items are typically stamped with hallmarks indicating their purity, such as “999” for 24-karat gold or “916” for 22-karat gold. Investment-grade gold often comes with assay certificates from reputable refiners, which provide independent verification of its purity and weight. Professional analysis using X-ray fluorescence (XRF) or assay services provides the most accurate confirmation of purity.

Choosing a reputable gold dealer or platform is important to ensure a secure transaction and genuine product. In Singapore, precious metals dealers must register under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act. Investors should look for dealers with transparent pricing, positive customer reviews, and a long track record.

Purchasing Physical Gold

Once the desired physical gold type is identified and a reputable dealer chosen, the purchase process begins by browsing products and checking live prices. Many dealers and banks in Singapore display real-time gold prices online, allowing for informed decision-making. Orders for physical gold can be placed both online and in-store, providing flexibility for buyers.

Common payment methods include bank transfers, credit card payments, or cash. After payment confirmation, arrangements are made for collection or delivery. For in-store collection, buyers need to present identification, such as their NRIC or passport, for identity verification. Some dealers offer home delivery services, with shipping typically taking several business days and often insured during transit.

Upon receiving physical gold, buyers should carefully inspect the items. This includes verifying the weight against the purchase order, checking for damage, and confirming hallmarks and any accompanying assay certificates. Promptly securing the gold in a chosen storage solution, whether a home safe, safe deposit box, or third-party vault, helps mitigate risks of theft or loss.

Purchasing Digital Gold and Gold ETFs

Purchasing digital gold involves setting up an online account with a digital gold platform or through a bank. Platforms like SafeGold, accessible via banks such as DBS, allow users to create an account and link it to their existing bank accounts for seamless transactions. Other digital gold providers like ozt. or Stacker Market also offer online account creation, requiring identity verification. After account setup, funds can be deposited, and gold can be purchased in fractional amounts, often as small as 0.0002 grams or from S$0.01.

For Gold ETFs, the process begins with opening a brokerage account with a financial institution that offers access to the Singapore Exchange (SGX) or other international exchanges where gold ETFs are listed. Examples of brokerages include DBS Vickers or Saxo Markets. Once the account is opened, it needs to be funded, typically through a bank transfer. Investors can then search for specific gold ETFs, such as SPDR Gold Shares (GSD.SI or O87.SI) or iShares Gold Trust.

After selecting the desired ETF, a buy order can be placed through the brokerage platform, similar to buying stocks. Fees for digital gold generally include transaction fees and potential spreads between buying and selling prices. Gold ETFs involve an expense ratio, an annual management fee deducted from the fund’s assets. For instance, SPDR Gold Shares has an expense ratio of around 0.4% per annum, while iShares Gold Trust Micro has a lower expense ratio of approximately 0.09%.