All That Glitters Is Not Gold, Except Gold Itself.
A new year, a new beginning and an opportunity for investors to reassess their financial strategies and safeguard their wealth.
All in the face of :
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Looming economic uncertainty (with a new US administration).
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Possibility of inflation ticking back up and eroding purchasing power of traditional currencies.
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Other challenges on the horizon.
There are a few different assets that can be called upon to preserve wealth. Gold is a worthy consideration.
The precious metal can be leveraged to:
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Hedge against inflation.
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Diversify portfolios.
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Build a foundation for long-term financial security.
Good news is there’s a wide range of gold assets to choose from, including gold bullion.
Selecting the right type to invest in, can be daunting, especially for first timer.
For a start, understand the physical-gold options available, is a crucial step when deciding to include gold in one's portfolio and within budget.
The 3 Options.
For physical gold investment, there are 3 options for beginner investors to consider.
(1) 1-gram gold bars
For beginners with limited funds or looking for an affordable entry point into gold investing, 1-gram gold bars are an excellent choice.
These small, lightweight bars are perfect for investors starting to build their gold portfolio without making a significant financial commitment.
With prices typically aligned with the spot price of gold plus a small premium, 1-gram gold bars provide an accessible way to own physical gold.
One of the key advantages of 1-gram gold bars is their flexibility:
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Easy to buy, sell and trade due to their smaller size & lower price point.
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Making them an ideal option for investors who may need liquidity or want to gradually accumulate gold over time.
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The small size also makes them a practical choice for storing in small safes or even carrying discreetly if necessary.
Aside from affordability and flexibility, 1-gram gold bars also serve as an effective hedge against inflation.
It’s a fact that even when value of paper currency fluctuates, gold often retains or increases its value.
Starting with 1-gram bars, beginners can immediately protect their wealth from economic uncertainties and gain investing experience in the gold market.
(2) 1-ounce gold bars
For those ready to make a more substantial investment, 1-ounce gold bars are a classic and widely recognized option.
These bars strike a balance between affordability and value, making them a popular choice for investors seeking to diversify their portfolios with physical gold.
Unlike smaller denominations, 1-ounce bars typically have lower premiums relative to the spot price, offering better value per gram of gold.
One of the main benefits of 1-ounce gold bars is their standardization.
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They are recognized & accepted worldwide, making them easy to liquidate when needed.
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Reputable mints and refiners produce these bars with serial numbers and certifications to ensure authenticity.
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This level of trust and transparency adds to their appeal for beginners looking for a secure investment.
In addition to their investment value, 1-ounce gold bars provide a reliable hedge against inflation and economic instability.
As central banks print more money and geopolitical tensions rise, gold remains a tangible asset that holds its value.
By including 1-ounce gold bars in their portfolios, beginners can protect their savings while positioning themselves for potential future gains.
Collectible gold rounds
For investors who appreciate the blend of value and financial security, collectible gold rounds offer a unique opportunity.
These rounds, often struck by private mints:
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Feature intricate designs and limited mintages.
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Making them appealing to both collectors and investors.
While their gold content is a significant factor in their value, the rarity and aesthetic appeal of collectible rounds can add a layer of worth.
Beginners interested in collectible gold rounds should focus on reputable mints and designs with a proven track record of maintaining or increasing value over time.
(1) Popular themes, (2) historical events and (3) iconic imagery often enhances the desirability of these rounds.
While premiums on collectible gold rounds may be higher than those on standard bars, their potential for appreciation can justify the initial investment.
Bottom Line.
Investing in physical gold is a smart & prudent step for beginners looking to protect their wealth and diversify their financial portfolios.
As 2025 has just began, start with a manageable and strategic option can make the process less intimidating and more rewarding:
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1-gram gold bar - affordable and flexible entry point for new investors.
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1-ounce gold bar - offers excellent value and widespread recognition.
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Collectible gold rounds - add an appealing choice for collectors & investors alike.
No matter which options an investor chooses, just make sure to begin one’s gold investment journey with a clear understanding of one’s goals, budget and risk tolerance.
Doing so, can build a solid foundation for long-term financial stability and take advantage of the timeless appeal of gold as a safe-haven asset.
My viewpoints: (mine only)
FYI - gold has a record-breaking rally in 2024. Price rose from $2,000 to $2,630, netting a respectable +32% gain.
If there is intention to hold physical gold for a long period of time without any intention to sell part of your investment overtime, gold bars are a good option.
They cost less per gram compared to gold coins.
Actually, there are other ways to invest in the metal that not covered by the CBS New post shared.
Below are the alternatives.
#1 - Gold ETFs
Gold ETFs are investment funds traded on stock exchanges, much like stocks.
These funds aim to track the price of gold, providing investors with a way to gain exposure to gold without owning the physical metal.
Gold ETFs can include a variety of gold-related assets, such as shares in gold mining companies or futures contracts.
Popular Gold ETFs in Singapore include:
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$SPDR Gold Shares(GLD)$ - GLD is one of the largest and most liquid Gold ETFs, closely tracking the price of gold.
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$iShares Gold Trust(IAU)$ - Offers a cost-effective way to invest in gold, with good liquidity and a lower expense ratio.
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$abrdn Physical Gold Shares ETF(SGOL)$ - Aims to closely track the price of gold bullion with a low expense ratio, ideal for cost-conscious investors.
#2 - Gold Savings Accounts
Function similar to Gold ETFs and are offered by banks.
When purchasing gold through account, investor buys a specific amount of gold and receive a paper certificate representing the value of that gold.
It also means there isn’t a need to physically hold or store the gold, as the bank handles all the logistics.
In Singapore, the two popular gold savings accounts are:
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$UOB(U11.SI)$ Gold Savings Account - start investing in gold with a minimum purchase of 5 grams.
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$ocbc bank(O39.SI)$ Precious Metals Account - allows investor to begin with as little as 0.31 grams.
They offer a way to invest in gold without the need for physical storage, providing convenience and accessibility through your bank.
Things to note:
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Important to check with the banks for the most current pricing, everytime, as these amounts may vary.
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Find out auxiliary charges / fees eg. monthly service charge incurred to be taken into account.
#3 - Gold Jewelry.
Lastly, one could also consider “flaunting” one’s wealth by buying gold jewelry.
Preferably in Asia where purity of gold at 22K (91.6%) is widely available.
Gold jewelry is a timeless and elegant accessory that adds a touch of luxury to any outfit.
Its enduring beauty and versatility make it perfect for everyday wear, from casual outings to special occasions.
While adorning the precious metal, a consumer is also making a smart investment.
With gold jewelry, it not only enhances one’s style but also build a valuable asset for the future.
What’s there not to like ?
Be it gold bars, gold coins, gold ETFs or gold account, always double-check the T&Cs, rules before investing; especially recurring fees & charges - all these add up and may erode profits to be had.
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Do you think gold is an investment option to consider in 2025 ?
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Do you think ‘pure’ gold jewelery is another option to consider?
*Note : It is only in Asia that gold jewelery “purity’ up to 22K, that is closest to pure gold of 24K - that’s ‘worth’ buying (my view only).
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
But here's a story. My friend isn't interested in stocks. She only trusts gold. Yearly, she buys gold jewelry with her bonus. She's been doing this since she started working – over 20 years!
When she wanted to buy a HDB (public) flat, she sold some of her gold and paid for the flat in cash and still has some left.
Now she owns her home and has no debt. That's a great achievement, especially since she only had secondary education.
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Pls "Re-post" so that more get to know. Tks! Rating is important (to me).
Consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!!