How to buy gold using CPF?

[TooFree]

Hi EDMW... Help.

I intend to buy physical gold using my 10% investable CPF OA and hold for a long term. Is it the time to buy gold now? Which local bank is recommended and also do I need to sell back the physical gold to repay my CPF RA in the future? Thanks.

 

[Kojo0403]

Hi EDMW... Help.

I intend to buy physical gold using my 10% investable CPF OA and hold for a long term. Is it the time to buy gold now? Which local bank is recommended and also do I need to sell back the physical gold to repay my CPF RA in the future? Thanks.

Use your brokerage account to trade the Gold ETF listed on SGX. Stock Code: O87. Most of the local brokers should support trading using CPF-)A monies and USD counter. Though my last check with FSMone is that they do not support USD counter currently.


Personally I am vested - I think its prudent to hold on to some gold with all the massive money printing going around the world.

You should maintain a CPF-IS account with either DBS, OCBC or UOB. fees and charges should be comparable among the 3 of them.

No, you don't have to force liquidate any ETF holdings to repay your CPF-RA in future. Similar to other CPF-IS investments.

 

[virus1988]

Is this EDMW section?

 

[zoneguard]

UOB is another option:
https://www.uob.com.sg/personal/support/investment/can-i-use-cpf-to-buy-gold-certificates.page
https://www.uob.com.sg/personal/support/investment/can-i-use-my-cpf-funds-to-purchase-gold.page

Please DYODD.

 

[reddevil0728]

can use CPF to buy physical gold meh? later u take and sell it like that like that loophole?

 

[zoneguard]

can use CPF to buy physical gold meh? later u take and sell it like that like that loophole?

If you read the link, it says:

The Gold Certificates will not be passed onto CPF investors. The certificates have to be safe kept by UOB, the agent bank under the CPF Investment Scheme.

Likewise for Gold Savings Account.

 

[reddevil0728]

If you read the link, it says:


Likewise for Gold Savings Account.

talking about like gold bar that kind of physical. not even cert

 

[kumokumo]

CPF can only buy "paper" gold, which should be good enough.

If you worry about the apocalyptic scenario of those gold certs not being honored, when it happens... it would be the least of your worries.

 

[neanea]

If you keep physical gold , need to maintain it? Like keep it away from scratches?

 

[TooFree]

Hi.
Hmm. A few thoughts.

Is it possible to open CPF investment account with DBS (because I trust DBS) for purchase of gold at UOB? How should I inform UOB if I am a walk in customer?

Also is it true that once you liquidated the gold at a later date the money gain is refunded back to CPF OA because I am using CPF OA to invest. What happen at age 55 when OA gets transferred to SA to form RA and I happen to liquidate at age 60.

Thanks all.

 

[bright_84]

If you keep physical gold , need to maintain it? Like keep it away from scratches?

Pamp. Else selling is going to cost more than just spread.

 

[zoneguard]

Is it possible to open CPF investment account with DBS (because I trust DBS) for purchase of gold at UOB? How should I inform UOB if I am a walk in customer?

I don't see why not. A CPF investment account with bank A can be used to transact with any fund distributors and banks are themselves fund distributors and gold is just another asset like funds.

Also is it true that once you liquidated the gold at a later date the money gain is refunded back to CPF OA because I am using CPF OA to invest. What happen at age 55 when OA gets transferred to SA to form RA and I happen to liquidate at age 60.

First 20K of OA cannot be invested. There is also a gold limit on OA usage.
Only OA (not SA) can be used for gold purchase and hence the sale proceeds go back to OA.
OA doesn't automatically get transferred to SA by itself to form RA at 55.
You can retain your CPF investments beyond 55, read the FAQ for details:
https://www.cpf.gov.sg/members/FAQ/...stment Schemes&folderid=11851&ajfaqid=2186966

 

[BBCWatcher]

Is it possible to open CPF investment account with DBS (because I trust DBS) for purchase of gold at UOB? How should I inform UOB if I am a walk in customer?

I don't see why not. A CPF investment account with bank A can be used to transact with any fund distributors and banks are themselves fund distributors and gold is just another asset like funds.

I agree with Zoneguard, but why would you do this, TooFree? Obviously you trust UOB if you're trying to buy gold-pegged securities that UOB manages. Moreover, last I checked UOB's CPF Investment Account is slightly lower cost (has slightly lower fees) than DBS and OCBC.

Also is it true that once you liquidated the gold at a later date the money gain is refunded back to CPF OA because I am using CPF OA to invest.

Or Singapore dollar loss, and CPF Investment Account fees are deducted at purchase, sale, and every quarter, too. This is a very expensive way to buy gold securities, even if that makes sense to do. (I wouldn't.) You're using dollars that could be earning 2.5% p.a. government guaranteed interest, and then you're pushing those dollars through an expensive path (the CPF Investment Account) chock full of fees.

 

[chienwei]

of course u cannot buy physical gold...

 

[Laofuzi67]

Use your brokerage account to trade the Gold ETF listed on SGX. Stock Code: O87. Most of the local brokers should support trading using CPF-)A monies and USD counter. Though my last check with FSMone is that they do not support USD counter currently.


Personally I am vested - I think its prudent to hold on to some gold with all the massive money printing going around the world.

You should maintain a CPF-IS account with either DBS, OCBC or UOB. fees and charges should be comparable among the 3 of them.

No, you don't have to force liquidate any ETF holdings to repay your CPF-RA in future. Similar to other CPF-IS investments.

Buying gold ETF will be using OA stock investment limit and not the gold limit right?

 

[Kojo0403]

Buying gold ETF will be using OA stock investment limit and not the gold limit right?

It will be the gold limit i.e. 10%