FAQs and answers on Gold investing

Humanity loves gold. Not only is it a great choice for investors, but who doesn’t love the idea of holding onto a nice, shiny stockpile of the world’s most adored substance? Gold stacking is a great way to secure your money and it is also a great hobby. In this article we’ll focus on answering some questions that many inexperienced and first-time gold investors have.

Gold and silver bullion is big business in Singapore. With so many bullion dealers and storage options, this is often considered to be the home of bullion. If you have any questions concerning precious metal investments, please consult the FAQs listed below.

How do I ensure I only buy real gold?

Firstly, you should always try to purchase from reputable dealers, such as the scores of accredited bullion dealers here in Singapore. You have the internet and the world at your fingertips, so don’t settle for anything less than perfect and if you have a suspicion about one company, then move onto the next.

What is gold so big in Singapore?

This region has always been big on investing and trading, and when you factor in the location, and the fact that China and India — two of the biggest gold and silver markets — are located either side, then you understand that Singapore is perfectly placed.

Is Singapore a safe country to store bullion?

Of course. There are many private vaults located across the country and none of these are connected to a bank or a government. This is why many investors all over the world choose to store gold and silver here, safe in the knowledge that their investment is secure and that it can not be accessed or taken by the government.

Is there any VAT or tax charged on gold or silver in Singapore?

Unlike some European countries, there is no VAT or tax to pay on your gold or silver purchase. As is the case elsewhere, you should declare any profits made from investing in gold and silver and you should pay tax on these. There is nothing extra to pay on your actual purchases though.

What sort of precious metals are available for purchase?

Singapore is a magnet for the biggest Mints and the biggest producers, which is why you will find everything from Metalor and PAMP, to the Royal Canadian Mint, the US Mint and the Perth Mint. There are also many products created by precious metal companies here in Singapore, such as the Singapore Mint, as well as in Hong Kong and in China. Mostly though, Singapore works with International brands and bullion, as many of the bullion buyers are from overseas.

Is Singapore just about the gold?

Gold is huge in Singapore and it is certainly bigger than silver, but there is plenty of silver here as well. Many bullion dealers and storage vaults deal with both silver and gold, and some of them also sell other metals, such as copper, platinum and palladium.

Are there many collectible coins in Singapore?

Anywhere where you have an aging population and a huge amount of bullion, not to mention a lot of money and a high employment rate, you will find that hobbies such as coin collecting thrive. Things are no different here in Singapore, who have a huge Numismatist community, with many small groups that meet both online and offline. If you would like to join one of these then simply do a little research online, find the contact details of the manager of the group or one of the members, and introduce yourself politely. These are small and quiet groups, often going for meals and drinks and discussing coins. One of the biggest ones in Singapore is for seniors only, but there are others for all sorts of age groups.

Do I have to store my precious metals here or can I bring them home?

Whilst bullion storage is one of the most popular ways of purchasing and keeping precious metals in this country, you are free to purchase for delivery and even for pick-up. You can also have your precious metal shipping straight to the vault upon purchase, before picking them up or having the delivered when you are ready for them.

How can I check my gold is real?

Unfortunately, there is a lot of fake gold out there. We’re not talking about the cheap Fool’s Gold you can find in joke shops either. The fake gold market is huge and much of it looks and feels like the real thing. Luckily, there are many ways you can check the legitimacy of your gold. One is to grab a magnifying glass and check for official inscriptions and markings, as well as studying the quality of the finish. There are experts who can do this, checking if a gold coin or bar is legit in a matter of seconds. This takes time to learn, but you can also test it with magnets. Gold is not magnetic, but many fake golds are, so if your coin or bar displays any magnetism, then it’s fake. There are some “experts” who recommend a “scrape” test, often using a ceramic plate. This will damage your gold though, and whilst it is a good way to check for legitimacy, it is not worth scratching your gold for.

How should I store my gold?

The best way to store your gold is with an official gold storage service. Even small-time investors can accumulate $10,000+ worth of precious metals. You wouldn’t keep this amount of cash in your house, so why would you keep that amount of gold? Insurance doesn’t always cover you for theft, whereas a storage service will ensure that such thefts never happen and will cover you even if they do. If you do decide to keep it at home, take precautions. Don’t tell anyone about your stack, word can get around and if the wrong person finds out then you might become a target.

Coins or bars?

This is entirely up to you. As a precious metal investor your goal is to find gold that is as close to spot price as possible. If this comes in the form of a coin, a bar or even a solid-gold spoon, it doesn’t matter! It’s all worth the same in the end. Of course, some coins do have premiums on them, but unless you know what to look for then this can be a risky and expensive way to speculate. If you’re new to precious metals, focus on the gold content itself, as opposed to any premium coins.

Is 22-Karat gold a good investment?

Of course. All gold is good, and if you can get it for spot price or near, then it’s a good investment. Some of the most popular gold coins, British Sovereigns, are actually 22-Karat gold, not 24-Karat, which denotes the purest of pure. Just remember that 1 ounce of 18-Karat gold does not equate to 1 ounce of gold.

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