Gold holds a special place in many households in Singapore and every other country in the world. Gold represents prosperity, wealth, and luxury. There are many factors to consider when buying gold, be it for yourself, a loved one, or as an investment. Knowing when to buy gold is important to help you make informed decisions and not get into unnecessary losses.
Many people wonder when is the best time to buy gold.
Why Invest in Gold?
Gold preserves its value during times of economic instability, which is why gold is seen as an attractive investment. Gold protects your wealth against inflation and currency fluctuations. You can even include gold in your investment portfolio to make you less dependent on the performance of stocks and other financial markets.
Everyone considers gold a safeguard, a kind of insurance against uncertain times. Investing in gold can be passed down through generations and it will still hold its value as a cherished and valuable item.
Factors That Affect Gold Prices
There are a range of factors that affect the gold price:
Global Supply and Demand
Mining output and consumer demand affect the price of gold. Any product with a limited supply or higher demand shows a surge in price.
Economic Stability
Similar to Global Supply and Demand, when fluctuations hit the international market, people tend to buy gold as a safeguard, which ultimately increases the price of gold.
Interest Rates
Lower interest rates make gold an attractive investment, which might push the price up.
Currency Tensions
The value of the Singapore Dollar (SGD) plays a major role in the price of gold. A weaker SGD makes buying gold more costly.
Local Market Factors
Investment-grade gold, or gold bars that meet purity standards of at least 99.5%, are exempt from GST in Singapore. However, for gold jewellery, GST still applies, which will affect the price. If the Singapore government increases the GST rate, the price of gold in Singapore will be affected. Higher rates equal higher purchasing costs. Conversely, if the rates are reduced, the price of Gold in Singapore may decrease.
When is the Best Time to Buy Gold?
Now that you know the factors involved, let’s take a look at the timing to buy. There is no fixed best time to buy gold, but here are a few factors to consider to help you make sound decisions that add value in the long-run.
Current Gold Market Trends
Gold prices tend to follow the global economic changes like rising inflation, currency instability, and central bank policies. When the global economy is unstable (not in a good way), the value of gold increases and people buy it. Like always, our economy will be stable once again, and that may be a good time to consider buying gold.
Festival and Promotions
Festival periods are such a crowd puller, especially in a multi-cultural country like Singapore. Retailers introduce promotions and exclusive collections during occasions like Lunar New Year, Deepavali, and Christmas. You can secure discounts and added-value offers for gold, even if you are just buying them for investment.
Personal Financial Planning
Gold is a luxury item and a great long-term investment. When buying gold, your budget should be heavily considered to prevent overspending while still choosing quality pieces.
Design Availability and Trends
Jewellery trends come and go, but timeless designs stay timeless with us. Seasonal or exclusive designs are high in demand, limited, and often sell out fast. Buying gold when they are still in store is one way to you get the design you want while adding to your investment collection.
Global vs Local Considerations
Comparing gold prices on an international level is good, but buying gold locally benefits you as a consumer. Local retailers give quality assurance, certification of authenticity, and after-purchase services. Other added perks are free delivery options and promotions during local holidays.
The first step to take if you are planning to buy gold is to set your budget and check market rates. The second step is to do some research on your personal preferences, the reason for buying, and which retailers in Singapore caught your eye.
Make informed decisions when you find yourself buying gold. Look out for market trends and promotions to get good value for your gold. At Merlin Goldsmith, gold is valued for its elegance, and our selection of gold jewellery is perfect for your next wearable or investment purchase.
Frequently Asked Questions
Where should I look for when buying gold?
You can check out both local physical and online shops in Singapore. Browse our latest collection of golden jewellery right here.
Should I buy gold jewellery or investment-grade gold (gold bar)?
It depends on you. Jewellery is wearable and has value. Gold bars are the better alternative for pure investment.