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Investing in UOB Gold Price: A Complete Guide for Flexible Gold Investors

UOB Gold Price
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Gold remains a valuable asset in today’s digital age, offering a hedge against inflation and a way to diversify portfolios.

Experts like Rohan Reddy of Global X ETFs highlight its low correlation with other assets and its ability to reduce risk. Its scarcity also ensures it remains a reliable store of value. 

With advancements in technology, investing in gold has become more accessible through vehicles like gold-backed ETFs and digital platforms. 

This guide will explore buying gold from United Overseas Bank (UOB), including benefits, fees, and requirements.

Buying Gold in Singapore

When considering gold investment in Singapore, investors have two primary options: physical gold and non-physical gold. Each option caters to different investment strategies and preferences, offering a range of opportunities for those looking to diversify their portfolios.

Physical Gold

This traditional form of investment involves buying actual gold in the form of bars, coins, or jewelry. It appeals to those who value the tangible security of holding their investment. Plus, investors can purchase smaller gold bars so they can trade gold in smaller quantities. In Singapore, investors can purchase physical gold from reputable dealers, banks, or even through the Singapore Precious Metals Exchange, ensuring authenticity and quality.

Pros:

  • Tangible Asset: Holding physical gold provides a sense of security and tangibility that other investments lack.
  • No Counterparty Risk: Unlike digital assets, physical gold does not rely on financial institutions or market stability.

Cons:

  • Storage and Insurance: Owning physical gold requires secure storage and insurance, which can add to the overall cost.
  • Liquidity: Selling physical gold can be less convenient and may require authentication or appraisal.

Non-Physical Gold

For investors inclined towards a more modern approach, non-physical gold investment options include gold savings accounts, gold-backed ETFs, and digital gold platforms. These methods offer the advantages of gold investment without the need for physical storage. 

Banks in Singapore, such as UOB, offer gold savings accounts, while gold-backed ETFs can be traded on the Singapore Stock Exchange, providing liquidity and ease of access.

Pros:

  • Convenience: Non-physical gold investments, such as gold ETFs or savings accounts, are easy to manage and do not require physical storage.
  • Liquidity: These investments can be easily bought and sold on financial markets, providing quick access to funds.

Cons:

  • Counterparty Risk: Unlike physical gold, non-physical investments are subject to the stability and integrity of financial institutions.
  • No Physical Possession: Investors do not own a tangible asset, which may be less appealing to some.

Popular Options in Singapore

  • Gold Bars, Coins, and Jewelry: Traditional forms of physical gold that can be purchased from reputable dealers.
  • Gold Savings Accounts: Offered by banks, these accounts allow investors to buy and sell gold without physical delivery.
  • Gold Certificates: Represent ownership of a specific amount of gold stored by the issuer.
  • Gold ETFs: Exchange-traded funds that track the price of gold and can be traded like stocks.

UOB’s Role in Gold Trading

UOB is a prominent player in the gold trading market in Singapore, offering a comprehensive suite of gold investment options catering to diverse investor needs. Their offerings include physical gold, gold bullion coins, gold certificates, and the Gold Savings Account. Each of these options has its unique features, rates, and fees, making UOB a versatile choice for gold investors.

At a glance:

ProductRates and fees
Gold barsPrices are based on the international gold price, adjusted for Singapore market conditions.
Gold bullion coinsPrices are calculated to include a premium over the international gold price.
Gold certificatesIt costs a flat S$5 per certificate and a service charge of S$72 per kilobar per annum. Fees are subject to GST.
Gold savings accountThe monthly service charge is 0.25% p.a. of the highest gold balance each month, subject to a monthly minimum charge of 0.12 grams of gold.

(source: UOB)

Physical Gold

UOB provides physical gold in various forms, such as gold bars and gold coins. This option is ideal for investors who prefer having tangible assets. Physical gold purchases through UOB come with the assurance of purity and authenticity, though investors should be mindful of the premiums over the spot price of gold, storage, and insurance costs.

Pros:

  • Investors can own actual gold bars or coins.
  • Physical possession eliminates reliance on financial institutions.

Cons:

  • Requires safe storage and insurance, adding to costs.
  • Selling physical gold may take time and involve authentication.
Gold Bullion Coins

Gold Bullion Coins

Gold Bullion Coins are a popular choice for investors looking to own physical gold in a convenient and recognizable form. These coins are minted by reputable mints and are available in various sizes, typically ranging from 1/20 ounce to 1 ounce. The coins are made of pure gold, usually 99.99% fineness, ensuring their value is primarily based on the gold content.

Pros:

  • Provide a physical form of investment, which can be appealing to those who prefer to hold tangible assets.
  • Widely recognized and easily tradable, making them a liquid asset that can be quickly converted into cash.
  • Gold bullion coins are compact and easy to store or transport, offering a convenient way to hold and move wealth.
  • UOB gold bullion coins are typically of high purity (usually 99.99% pure gold), ensuring the value of the investment is based on the intrinsic value of the gold.

Cons:

  • Gold bullion coins often come with a premium over the spot price of gold, which includes manufacturing, distribution, and dealer markup costs.
  • Physical gold requires secure storage, which may involve additional costs such as safes or safety deposit boxes.
  • Unlike stocks or bonds, gold bullion coins do not generate income, such as dividends or interest.
  • While rare, there is a risk of counterfeit coins in the market, so it’s important to purchase gold coins from reputable dealers like UOB.

Gold Certificates

For those looking to invest in gold without the logistical concerns of physical storage, UOB offers gold certificates. This investment option represents ownership of a specific quantity of gold without taking physical possession. Gold certificates can be a cost-effective alternative to physical gold, as they eliminate storage and insurance fees, though they may include management or administrative fees.

Key Features:

  • S$5 per certificate 
  • Service charge of S$72 per kilobar per annum. 
  • Fees are subject to GST.

Pros:

  • Ownership of gold without the need for physical storage.
  • Reduces the risk of theft or loss associated with physical gold.

Cons:

  • No physical possession of gold.
  • May involve issuance and administrative fees.

UOB Gold Savings Account (GSA)

UOB’s Gold Savings Account allows investors to buy and sell gold without physical delivery. Transactions in the GSA are conducted based on the prevailing gold price, offering a convenient way to invest in gold with flexibility. The GSA typically involves maintenance fees or charges for transactions, and investors need to consider these costs alongside the potential benefits of hassle-free gold trading.

Key Features:

  • The monthly service charge is 0.25% p.a. of the highest gold balance each month
  • Subject to a monthly minimum charge of 0.12 grams of gold.

Pros:

  • Allows buying and selling of gold in smaller quantities.
  • Transactions can be made online or at branches.

Cons:

  • Investors do not own tangible gold.
  • May include transaction and maintenance fees.

UOB Gold Price 

All rates in Singapore dollars as of 16 February 2024

CURRENCYUNITBANK SELLSBANK BUYS
ARGOR CAST BARSGD100 GM8779.008648.00
ARGOR Heraeus Lunar BarSGD10 GM955.00862.00
ARGOR Heraeus Lunar BarSGD1 OZ2807.002688.00
CAST BARSSGD1 KILOBAR87108.0086495.00
GOLD CERTIFICATESGD1 KILOCERT87108.0086495.00
GOLD SAVINGS A/CSGD1 GM87.1086.50
GOLD BULLION COINSSGD1 OZ2780.002689.00
GOLD BULLION COINSSGD1/2 OZ1430.001344.00
GOLD BULLION COINSSGD1/4 OZ728.00671.00
GOLD BULLION COINSSGD1/10 OZ315.00268.00
GOLD BULLION COINSSGD1/20 OZ(GNC,SLC &GML)183.00133.00
PAMP GOLD BARSSGD100 GM8803.008648.00
PAMP GOLD BARSSGD50 GM4439.004323.00
PAMP GOLD BARSSGD20 GM1808.001727.00
PAMP GOLD BARSSGD10 GM935.00862.00
PAMP GOLD BARSSGD5 GM490.00430.00
PAMP GOLD BARSSGD2.5 GM266.00214.00
PAMP GOLD BARSSGD1 GM115.0084.00
PAMP GOLD BARSSGD1 OZ2786.002688.00
PAMP GOLD BARSSGD1/2 OZ1403.001343.00
SILVER INVESTMENTS PASSBOOK ACCOUNTSGD1 OZ31.2730.41
UOB Lunar BarSGD1 OZ2840.002688.00

(source: UOB Group)

How to Buy Gold from UOB

Purchasing gold from UOB is a straightforward process, with options to buy online through internet banking or in person at a branch. Here’s how you can start investing in gold with UOB.

Step 1: Choose Your Gold Investment Type

First, decide whether you’re interested in physical gold (bars, coins) or non-physical gold (Gold Savings Account, gold certificates).

Step 2: Online Purchase via Internet Banking

For Non-Physical Gold:

  1. Log in to UOB Personal Internet Banking.
  2. Navigate to the Investment section.
  3. Select Gold and Silver to view the options available for gold savings accounts or gold certificates.
  4. Follow the on-screen instructions to make your purchase.

For Physical Gold:

Currently, UOB might not offer the purchase of physical gold directly through internet banking. Please visit a branch or contact customer service for the most up-to-date information.

Step 3: In-Branch Purchase

For Physical and Non-Physical Gold:

  1. Visit a UOB branch. It’s recommended to check if the branch offers the gold investment services you’re interested in.
  2. Consult with a customer service representative about your gold investment options.
  3. Provide the necessary identification and complete any required forms.
  4. Make your purchase. For physical gold, you’ll arrange for pickup or delivery. For non-physical gold, the investment will be added to your account.

Tips for Buying Gold from UOB

  • Research: Before making any purchase, understand the current market price of gold and any additional fees associated with your investment.
  • Verify Availability: Not all branches may have physical gold available for immediate purchase. Call ahead to confirm.
  • Security: Consider the security and insurance options for storing physical gold.
  • Investment Strategy: Think about how gold fits into your overall investment portfolio and long-term financial goals.

Fees and Requirements

Type of gold investmentFees and chargesRequirements
Gold Savings AccountService charge: 0.25% p.a. of the highest gold balance each month, subject to a monthly min. charge of 0.12 grams of gold

Early account closure fee: S$30 (subject to GST) if you close the account within six months from the account opening date 
• Minimum balance requirements: 5 grams of gold for GSA
• The GSA balance cannot be converted into physical gold or gold certificates
Gold barsLate collection charge: S$5 per kg per day; S$2 per piece per day for small bars Gold bars must be collected in person at UOB Main Branch within 5 working days of online order placement 

• Each cash transaction is up to S$20,000
• Each cashier’s order transaction is up to S$250,000
• Gold is collectible upon a cashier’s order clearance(the next working day)
• Only gold from UOB/OUB in good condition is acceptable
• Concerning the gold in kilobar, it is intact and sealed
Gold bullion coinsLate collection charge: S$2 per piece per dayGold bullion coins must be collected in person at UOB Main Branch within 5 working days of online order placement 
Gold certificates• Flat S$5 certificate fee
• Service charge: S$72 per kilobar per annum 

Certificate fees and service charges are subject to GST
• 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 Coins and Abacus

Benefits of Investing in Gold

A Valuable Investment

Gold has demonstrated remarkable growth over the past two decades. If you had invested in gold in 2000, you would have seen an impressive increase in value, with international gold prices reaching historical highs in recent years. Comparatively, gold’s growth has outpaced many traditional equity indexes, underscoring its potential as a key asset in an investment portfolio.

An Inflation Hedge

In Singapore, as well as globally, gold has proven to be an effective hedge against inflation. Despite significant inflationary pressures in the past decade, gold’s value has increased substantially, outperforming the rise in the cost of living. This performance reinforces gold’s reputation as a safeguard against the inflationary erosion of wealth.

Easy Maintenance

Investing in gold requires minimal maintenance compared to other assets like real estate. There’s no need for regular evaluations or concern over depreciation. While physical gold does incur storage costs, alternative forms of gold investment, such as gold certificates or savings accounts, offer the benefits of gold ownership without the logistical challenges of storing physical bullion.

Final Thoughts

For those seeking to navigate the gold market’s potential with convenience and without the encumbrances of physical ownership, UOB’s Gold Savings Account emerges as a prime choice. Ready to take the next step in gold investment? UOB beckons with an open door, inviting potential investors to deepen their portfolio with the luster of gold.

Key Takeaways

  • Various gold products from UOB, e.g., physical gold, gold certificate, and gold savings account 
  • Two ways to buy gold: UOB internet banking and physical branches
  • UOB’s Gold Savings Account is a good account where you can buy and sell gold more easily.
  • If you decide to purchase gold in Singapore, you must first choose physical gold or non-physical gold. 

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