3 Important Things to Know about Gold Investment (2016 Update)

Important Things to Know about Gold Investment
Important Things to Know about Gold Investment

3 Important Things to Know about Gold Investment in Singapore

Gold investment has been the rage in Singapore’s market recently, and I can’t help but wonder why. To satisfy my quench and to not let a great opportunity pass just in case, I’ve done my research and found interesting things about gold investment in Singapore.

Here are 3 things you need to know about gold investments:

1.    It’s like an Insurance

Singaporeans understand the importance of insurance, no matter the type. It is safe to say that more and more people are putting their money in this form of investment. Insurance is supposed to be a backup plan to secure your future. Gold investment is no different. Buying gold in Singapore’s market is like securing your money for unforeseen events in the future. In gold investing, you are actually putting your money in the country’s gold reserve. It is like an insurance for your overall portfolio in stocks. It’s diversified and the chance of completely losing your capital is minimum.

For instance, you have a $1,000 investment in gold from your $80,000 total portfolio. When the market drops and your portfolio is force to drop at $50,000, you still got your gold investment to recover from this loss. Gold investment in Singapore has a current price of around $1,200 and has increased in as much as 500% for the past years.

2.    Gold Investment is Highly Volatile

The notion that gold investing is for people who have a high risk appetite is quite understandable. This is because gold investment is highly volatile, meaning it can change unpredictably. If the price change is going up, then it can pretty much do wonders to your overall portfolio. However, if the change is negative, then it can eat a huge chunk of your stock.

Experts suggest that you need to be careful in choosing the type of investment that suits your risk appetite. If you want to secure your investment for long term, which can be passed on to the next generations, then this may not be ideal for you. Since gold investment is highly volatile, not to mention you need to know what kind of gold has the most liquid asset. Hence, it is much recommended for short term investment.

3. “Paper Gold” is Much Better for Active Investors

There are two types of gold investment, paper and physical gold. The physical gold refers to the actual gold that you can keep and pass on to your siblings. The paper gold, on the other hand, relates to the value of money of the gold that you have in the country’s reserves. For active investors who keep on finding ways to double up their investment in a snap, paper gold is an excellent choice. This is because it can be bought and sold in just a matter of minutes, unlike physical gold which is hard to sell.

Investing in things which don’t have a high sale value is a danger for investors who are making the most of the high market prices. When it comes to growing your investment fast, paper gold is the clear winner.


Are you currently investing or looking to start investing? If you require the money to do so, feel free to contact us. As a licensed moneylender in Bukit Batok, we will be able to provide you with the funds you require.

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