Firstly, you need to understand that having a UOB gold savings account is very similar to simply having paper gold. UOB charges a fee for maintaining this account and this fee is deducted from your account annually.

If you are looking at keeping gold on a very long term basis, e.g. 5 years and longer, keeping physical gold saves you from paying these fees.

Could please explain why do you buy physical god instead of keeping the amount in that account. Where do you buy/sell the physical gold. Please give us brief explanation on buying and selling physical gold. Thanks you in advace

As for the Silver Savings account, an annual administrative fee (in ounces of silver) as low as 0.2 ounce per month or 0.375% p.a. on the highest balance per month, whichever is higher. The fee is subjected to GST, which will be deducted from your account in ounces of silver also.

For more information, please refer to:
http://www.uob.com.sg/personal/investments/treasury/precious_metals.html

I would think that they don’t buy physical gold to support the deposit. If they did, you would have been charged storage fees.