Gold Deposit Acct

[DevilRay]

Hi everyone,

Was contemplating on buying physical gold but friend was suggesting getting a gold deposit acct mentioning that it's closer to spot pricing.

Hence need experts help here. Which bank has the best Gold deposit acct And is pricing actually better than physical Gold?

Thanks.

 

[yukita]

uob?
10 chars

 

[guowei]

Hi everyone,

Was contemplating on buying physical gold but friend was suggesting getting a gold deposit acct mentioning that it's closer to spot pricing.

Hence need experts help here. Which bank has the best Gold deposit acct And is pricing actually better than physical Gold?

Thanks.

only UOB got gold account arh...

 

[makav31i]

Did your friend mention the fees incurred monthly for the UOB Gold Savings Account?

 

[AhBui168]

Open account must at least buy 5gram of gold.

Will gold rise again?
Should i touch gold again?

 

[djchris]

The fees incurred monthly with the savings account is too much to make the investment worthwhile.

 

[Bedokian]

Gold ETF would be better IMO.

Not vested in this one.

 

[DevilRay]

uob?
10 chars

only UOB got gold account arh...

Did your friend mention the fees incurred monthly for the UOB Gold Savings Account?

The fees incurred monthly with the savings account is too much to make the investment worthwhile.

Hi All Thanks for the replies. How much would the fees be? seems like it's a pretty high amount.

Gold ETF would be better IMO.

Not vested in this one.

Hi Bedokian, Care to share your insights on why you're not vested in this?

Thanks.

 

[henrylbh]

A lousy investment with no annual dividend, even if there is no holding cost. How much you expect it to go up from here - even tho it is now at one year low?

 

[djchris]

Hi All Thanks for the replies. How much would the fees be? seems like it's a pretty high amount.



Hi Bedokian, Care to share your insights on why you're not vested in this?

Thanks.

It's a percentage of your holdings. So you buy more, you pay more.

 

[limster]

A lousy investment with no annual dividend, even if there is no holding cost. How much you expect it to go up from here - even tho it is now at one year low?

Agree that as an investment, it is not particularly good. Gold is more like insurance in case of high inflation or sharp drop in S$.

I have a few tiny gold bars bought a few years ago. They just sit around, like an insurance policy, if everything is ok in the equity market, gold will not give you much returns.

If there is a crash, and people move into gold out of fear that uncle168's prophecies have come true, then you can 'cash in' your insurance policy and use it to buy shares at deep discounts.

Other than that, gold doesn't do anything, doesn't give dividends. Capital gain is also non-existent. Not saying that you shouldn't consider gold, but commodities should not exceed 5% of your portfolio.

If you are interested in gold mining, then consider buying shares of manufacturers that supply equipment to the gold mining industries like CAT and Joy Global.

 

[Bedokian]

Hi Bedokian, Care to share your insights on why you're not vested in this?

Thanks.

I usually state my position when I comment on a particular counter, as in vested or not vested.

I recommend the gold ETF is because of its advantages over the UOB Gold Savings Account. You could sell the former on the market (as compared to selling back to UOB only for the latter), and with the exception of paying the commission while buying and selling the gold ETF, there is no annual/quarterly/monthly fees in keeping it if you bought it through those custodian-free brokerages.

But, as what others have said here, holding physical gold and the gold ETF (as well as other precious metals) will not give you any yield. It provides a form of alternate asset class to hold as it is not as correlated to other types like equities, bonds or currencies (theoretically at least).

 

[tiny]

There are storage fees and "maintenance" fees...

 

[henrylbh]

Agree that as an investment, it is not particularly good. Gold is more like insurance in case of high inflation or sharp drop in S$.

I have a few tiny gold bars bought a few years ago. They just sit around, like an insurance policy, if everything is ok in the equity market, gold will not give you much returns.

If there is a crash, and people move into gold out of fear that uncle168's prophecies have come true, then you can 'cash in' your insurance policy and use it to buy shares at deep discounts.

Other than that, gold doesn't do anything, doesn't give dividends. Capital gain is also non-existent. Not saying that you shouldn't consider gold, but commodities should not exceed 5% of your portfolio.

If you are interested in gold mining, then consider buying shares of manufacturers that supply equipment to the gold mining industries like CAT and Joy Global.

If there is a stock market crash, most likely gold will also follow.

 

[sebastgt]

There are storage fees and "maintenance" fees...

there is a built-in fee called expense ratio which is 0.4% annually for Spdr gold etf . After knowing that, i switched to uob gold savings account which is cheaper at 0.25%. If you are buying larger amount, you could go for the 1kg gold certificate with even lower fee

 

[kelvin_99]

Hi everyone,

Was contemplating on buying physical gold but friend was suggesting getting a gold deposit acct mentioning that it's closer to spot pricing.

Hence need experts help here. Which bank has the best Gold deposit acct And is pricing actually better than physical Gold?

Thanks.

My 2 cents.

If you are convinced that gold is the way to go, in terms of low transaction cost you can consider buying physical gold from UOB. You just pay cash and carry the gold on the spot with no admin/misc. cost. You can sell it back to them at the published rate with no questions asked as long as you produce the supporting documents that comes with the purchase. Opening a gold account will incur cost. You can check the UOB website on this.
--> UOB : Gold & Silver

If you are considering physical gold vs ETF, there are some differences. (See attached video). Take the timelines mentioned in the video with a pinch of salt. More importantly, understand the financial impact between investing in physical and paper gold (i.e. ETF)
--> https://www.youtube.com/watch?v=aZwSiHBxm0c

Happy investing!

 

[DevilRay]

Wow Thanks to all for the replies. Has been a very interesting read. Let me go consider my options again.

Thanks.

 

[limster]

My 2 cents.

If you are convinced that gold is the way to go, in terms of low transaction cost you can consider buying physical gold from UOB. You just pay cash and carry the gold on the spot with no admin/misc. cost. You can sell it back to them at the published rate with no questions asked as long as you produce the supporting documents that comes with the purchase.

Search the threads for AhBui and his 1kg gold bar. The fact that you must go to UOB and queue up during office hours to buy /sell physical gold is also a 'hidden' cost.

When gold was crashing, his boss don't allow him to take leave to queue up in UOB to sell his gold bar, had to wait a few days, gold price dropped even further.

Gold account, I think you are allowed to you i-banking to transact.

 

[sophie.wee.weng]

there is a built-in fee called expense ratio which is 0.4% annually for Spdr gold etf . After knowing that, i switched to uob gold savings account which is cheaper at 0.25%. If you are buying larger amount, you could go for the 1kg gold certificate with even lower fee

UOB GSA is cheaper than GLD ETF for management fees? Didn't know this, thanks.

 

[AhBui168]

If TS listen to me, he would gain now.
Cause the gold has gone up.