Have you ever considered using UOB gold savings account as an investment vehicle for precious metals?
These savings accounts definitely have a place in my precious metals investment portfolio.
I use the UOB gold saving accounts mainly to capture gold prices during dips in gold prices. Unlike the big boys out there, retail investors do not have the luxury of buying gold in the gold market because they involve large amounts in transactions. Other retail investors will also not put their physical gold for sale during dips in gold prices. That said, I am ignoring the fact that we can purchase physical bullion gold from UOB at any time because UOB charges a 7% GST which I consider to be a ridiculous burden for investing.
On an average, I top up my UOB gold savings account once a month. Here’s how I use the UOB gold savings account to capture gold prices.
For example. In January, I captured a dip in the gold prices by depositing 25 grams of gold at S$38/gm in my UOB gold savings account. In February, I managed to make another deposit of 25 grams of gold at S$41/gm in my UOB gold savings account to capture a recent dip in gold prices. In total, that’s S$1975. During this period, naturally there wouldn’t be any retail investor willing to sell their physical gold that cheap when gold prices are down. In today’s gold prices, S$1975 would have grown to S$2130, a 7% in profit.
Let’s say now, if a retail investor sells me a 50 gram gold bar for S$2200, I would be able to withdraw 50 grams of paper gold in my UOB gold savings account and top up S$70 for the physical gold bar. That means I am only paying S$2045 (S$1975 plus $70).
Do you see what I mean when I say I am using the UOB gold savings account to capture gold prices?
What do you think? Let me know by leaving your comments below.
Photo by: amarb
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