New savings scheme to tap into gold, precious metals

SINGAPORE — Retail investors seeking to diversify into precious metals now have another option with the launch of the GSC Savings Accumulation Program for physical gold, silver and platinum in Singapore by GoldSilver Central, a Singapore-registered company that specialises in physical bullion trading.

For as little as S$5 a day, investors can take part in the gold accumulation plan that involves the accumulation of physical precious metals on a daily basis for a flexible period of time. The accumulation cycle is for three months, after which investors have the option of taking physical delivery of their holdings. Prices are based on the GSC 10am reference price, which is transparent and readily available to investors.

Investors welcomed the investment opportunity as an alternative to equities in a volatile market.

“With the equity markets at current highs, this plan to accumulate gold allows me to be more defensive in terms of positioning,” said Mr Jason Chin, 32, a consultant in the fintech sector.

On average, Mr Chin expects to put aside between S$10,000 and S$15,000 a month into the gold accumulation plan. The option of being able to take physical delivery at the end of the accumulation cycle is an added attraction, he said.

“This gives me an alternative so that I don’t have to keep monitoring fluctuations in the market. It takes the stress out of looking at spot prices and deciding whether to buy on that day,” agreed Mr Daniel Wong, 49, a trainer in adult education. Gold is a relatively safe investment option, especially with gold prices hovering around current levels, said Mr Wong.

“We are pleased to be the first in the Singapore market with this product that has been available in Japan since the 1980s and most recently, made available in China by the Industrial and Commercial Bank of China” in 2010, said Mr Brian Lan, managing director of GoldSilver Central. Based on data provided by the World Gold Council, two-thirds of global gold demand in 2015 was from Asia.

“Singapore consumer demand for gold is around 20 tonnes per year, one of the smallest in Asean, although our official gold holdings, amounting to 125.7 tonnes, ranks 27th globally,” said Mr Albert Cheng, CEO of the Singapore Bullion Market Association. Since its introduction in China, roughly 5 to 6 million accounts were opened with about 80 tonnes of physical gold saved, with the peak at almost 200 tonnes, he added.