Investors are witnessing gold — quite literally. The precious metal has just shattered another record, surging beyond US$4,070 (S$5,300) per ounce amidst a storm of renewed US-China trade tensions, a US government shutdown, and expectations of interest rate cuts from the Federal Reserve.

In Singapore, gold fever is spreading rapidly. Local investors have significantly increased their holdings of gold ETFs, certificates, and even physical bullion as prices continue to climb — up 54 per cent so far this year, following a 27 per cent rally in 2024. With analysts now targeting US$4,500 by next year — and some even forecasting US$10,000 before the decade concludes.

There is no doubt that gold is shining brightly, so perhaps the real question is this: how can you invest in it before it climbs even higher? Here is a comprehensive guide.

1. How do you invest in gold in Singapore?

There are several primary ways Singaporeans can invest in gold:

Buy physical gold

Physical gold is typically sold to investors in the form of gold bars or coins. You will need to store your valuable assets at home or in a safe deposit box at the bank. Any form of physical gold is considered fair game, so even that gold chain around your neighbourhood ah pek's neck can appreciate in value if gold prices rise.

While we often see people wearing gold as jewellery, you do not need to visit a jeweller's to purchase gold for investment purposes. You can buy physical gold for investment at banks. For example, you can acquire gold bars or gold bullion coins at UOB. Bullion gold simply refers to physical gold that investors hold as a hedge against inflation or economic uncertainty.

Buy gold certificates

Buying gold certificates is similar to purchasing physical gold, except you do not have to transport those gold bars home. Instead, you are issued a certificate, which can usually be exchanged at any time for cash or physical gold.

At UOB, you can purchase a gold certificate for $5 with a yearly service charge of $72 per kilobar (fees are before GST). Each certificate sells you gold in kilobars, and each can hold up to 30 kilograms of gold. Additionally, these certificates never expire and can be exchanged for cash or physical gold if you wish to possess the real thing.

Buy gold using a gold savings account

Some banks offer the option of opening a gold savings account, which enables you to buy and sell gold without dealing with physical delivery.

Just like gold certificates, a gold savings account allows you to buy and sell gold without physically managing the actual metal. Your gold deposits will simply be reflected in your account balance.

OCBC provides a Precious Metals Account that allows you to buy gold seamlessly via the OCBC Digital app without the need to physically hold it. CIMB's Gold Account and UOB's Gold Savings Account operate in a similar manner. Here are their charges and other details: