Hello! How would one invest in physical gold and silver? Not just an account or via funds, but actually collecting and storing the gold bars/coins? Are charges v high?

Recently heard of an acquaintance buying physical gold and silver and wanted to understand more about how one would start, and also what the risks are apart from that of theft and of course price movement.

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Wrong Sean

23 Aug 2020

You can buy from reputable buyers or bank(UOB) in Singapore. You can buy and store at home or store at a secure vault that providers have. They do charge storage fees. Of course storing at home would require some security measures like fire resistant safe etc.

For physical bullion, the spread can vary a lot based on the weight. Smaller units usually have a wider spread. And dealers buy back at a much lower price. Some do list the buyback price. So you have to check the price that you bought to see if you make money? Smaller units make it easier to liquidate if you do need the money. Imagine selling 1kg vs 10g etc.

For bars and coins, typically coins have a higher premium due to its design and demand by collectors. Bars typically have a lower entry point. Sometimes there are promos or preorders at a lower premium. So those could be a good entry point.

And if you are collecting as investment and ok with not physically touching the metal, do leave them in the tamper proof package that they came in. So that proof of authenticity is easier to ascertain. May or may not affect the resale value.

Do note only investment precious metals are exempt from GST. So be aware of the type you are buying.