Singapore scraps GST on Gold; how to buy gold?
No GST on Gold from 01 October 2012
Announced by Finance Minister Tharman Shanmugaratnam, Singapore will scrap the 7% goods and services tax (GST) come October 2012, starting tomorrow. Besides many other outcomes, the move makes it cheaper for investors in Singapore to buy gold as a store of wealth.
How to buy gold in Singapore in 3 easy steps?
- Exchange Traded Fund or ETF of gold – SPDR Gold Shares (Stock code on Singapore stock exchange is 087). This is a very easy and liquid way to buy and sell gold. It requires an account with a broker as well as the Central Depository. Trading can be done on the stock exchange during operating hours.
- Some banks like Bank of China offer a gold savings account. Its quite cute because you get literally a savings booklet that has a shiny gold cover. You can buy gold in grams and the amount you own will be recorded. There are monthly holding fees though.
- Gold bullion – Gold bullion offers good alternatives because you own the physical stuff. They are better deal than gold jewellery as a store of wealth because when you buy the latter, price includes worksmanship fee. Gold bullion can be bought at local banks. For example, there is a special counter at UOB main bank at Battery Road where you can buy bullion. Some things to note:
- Bring your IC because the bank will keep a record.
- In the past, the gold they sell may be secondhand so make sure they are not chipped or scratched. These days, newly minted coins are sold in sealed plastic wrappers.
- Keep the receipt for the purchase because you can sell the bullion back to the bank but they will ask for the receipt and the wrapper must be intact.
- All of us cannot resist taking the bullion out to touch but for goodness sake don’t drop it on the floor. That’s because pure gold is very soft and will get scratched or dented. The bank may not accept back.