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Is gold a long-term insurance?

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Many wealth builders view gold as a long-term insurance. This is because gold offers safe-haven qualities that serve to hedge against inflation and economic uncertainties.  In Singapore, the government encourages the locals to buy and sell gold, with a view of making Singapore a precious metal trading hub.

One of the policies that incentivize Singaporeans to buy gold is the exemption of GST for Investment Precious Metals (“IPM”).  Since October 2012, precious metals in the form of a bar, ingot, wafer and coin which meet certain criteria can qualify as IPM and are exempted from GST.

buy gold Singapore

To qualify as IPM, the precious metal must meet 4 criteria:

  • It is gold of at least 99.5% purity, silver of at least 99.9% purity or platinum of at least 99% purity.
  • A precious metal bar, ingot or wafer refined by a refiner with the following accreditation/ endorsement is regarded as meeting this criterion:

For gold and silver, a refiner in the current or former ‘Good Delivery’ list of the London Bullion Market Association (LBMA);

  • It bears a mark or characteristic that is internationally accepted as guaranteeing its quality.
  • It is not a decorative bar, ingot or wafer or a collector’s bar, ingot or wafer.

With effect from 1 September 2016, the list of exemption of gold, silver and platinum coins from Goods and Services Tax (GST) in Singapore has been expanded.

Full official list of Gold Coins qualifying for GST exemption

  • America Buffalo
    (ii) Australia Kangaroo Nugget
    (iii) Australia Lunar
    (iv) Austria Philharmonic
    (v) Canada Maple Leaf
    (vi) China Panda
    (vii) Malaysia Kijang Emas
    (viii) Mexico Libertad
    (ix) Singapore Lion
    (x) United Kingdom Britannia
    (xi) Canada Call of the Wild 3-coin series
    (xii) United Kingdom Lunar
    (xiii) United Kingdom The Queen’s Beasts 10-coin series

Full Official list of Silver Coins qualifying for GST exemption

(i)      America Eagle
(ii)     Australia Kookaburra
(iii)    Australia Koala
(iv)    Australia Lunar
(v)     Austria Philharmonic
(vi)    Canada Maple Leaf
(vii)   China Panda
(viii)   Mexico Libertad
(ix)    United Kingdom Britannia
(x)     Australia Saltwater Crocodile
(xi)    Canada Wildlife 6-coin series
(xii)   Canada Birds of Prey 4-coin series
(xiii)   United Kingdom Lunar
(xiv)   Armenia Noah’s Ark
(xv)    Australia Kangaroo
(xvi)   United Kingdom The Queen’s Beasts 10-coin series

You may purchase the gold and silver coins from BullionStar, one of the largest bullion dealers In Singapore. BullionStar offers wealth builders unique experience in buying bullion because of its comprehensive, one-stop service suites. You can place your order on its website, make payment, request for delivery or even store your bullion at its My Vault Storage.

As a wealth builder, it is important to diversify wealth in different asset classes and not put all your eggs in one basket. Traditionally, the stock market generates the best returns for investors over the long run but there is a need to understand the concept of risk and returns.

With higher returns, there are higher risks of losing your investments. Hence, it is not wise to channel all your funds into the stock market because all it takes is one market correction to wipe out your capital.

Gold and Silver Bullion

Gold and Silver Bullion

Gold and silver bullion allow you to transfer your wealth out of the treacherous financial system and hedge against market uncertainties. In particular, gold can preserve your wealth and protect your purchasing power in the face of inflation or deflation. Thus, many investors view it as a long-term insurance for their wealth.

In Singapore, BullionStar’s Bullion Savings Programs allow you to trade gold and silver online at any point of time. At very low price premium and spread, BullionStar allows you to convert grams in the Bullion Savings Programs (BSPs) to 100g PAMP Cast Bars and 15kg Heraeus Bars. Unlike other bullion savings programs (BSPs) are fully backed by physical precious metals.

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SG Wealth Builder

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Updated: September 24, 2016 — 3:30 pm

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