Gold ETFs: What This Gold Investment Route Offers & How to Get Started

SPDR Gold ETF Singapore - buy gold Singapore

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Buying gold isn’t just about hoarding shiny bars of precious metal in a vault. In fact, gold is actually an investment vehicle that has a place in a multi-asset investment portfolio.

Considered a safe-haven investment, the value of gold typically stays the same or rises during market downturns or fluctuations. So, buying gold can help cushion your portfolio from the fallout of adverse events like economic crises or pandemics like the one we’re in now.

Gold prices hit historic highs in 2020, the year the COVID-19 pandemic started. The last time gold prices had spiked so dramatically was in the aftermath of the 2008 financial crisis.

Unlike other commodities, gold has some features that put it in a class of its own. For starters, it is better at offering diversification than many other commodities, and gold prices tend to be more resistant to supply-related fluctuations. Learn more about gold’s unique characteristics.

Now, if hauling gold bars to a safe deposit box doesn’t sound like your thing, we don’t blame you.

Luckily, there are many ways to invest in gold these days. For instance, buying into a gold Exchange-Traded Fund (ETF) is one way to get exposure to gold without having to handle and store the actual precious metal. Let’s find out more.


What is gold ETF and what does it offer?

You might already know how conventional ETFs work — they track the prices of a basket of equities and can be traded like stocks.

Likewise, a gold ETF tracks the value of physical gold and can be bought and sold on exchanges. This enables investors to gain exposure to the gold market without having to buy physical gold. A typical retail investor would need to sign with stockbroking firms or trading platforms to trade stocks and ETFs listed on SGX.

Also, buying gold in its physical form can be logistically complex, as the investor not only needs to arrange for transportation and handling of the gold but must also ensure that it can be safely stored, such as in a safe deposit box, and adequately insured.

Apart from the ease and convenience of not having to handle and store physical gold, gold ETFs offer investors greater liquidity. Gold ETFs can be traded on an exchange, making them much easier to buy and sell than physical gold and allowing investors to transact instantly at the touch of a button.

In addition, most ETFs charge a relatively low fee compared to most other gold investment vehicles, which makes them a cost-effective way to invest in the value of gold.

Although there are some differences between buying physical gold as opposed to investing in a gold ETF, gold bullion is still the underlying asset in gold ETFs. So, buying into a gold ETF offers similar advantages to buying physical gold and can thus be an effective hedging tool, mitigating the risks in other areas of your portfolio.

All in all, investors of gold ETFs are faced with much lower barriers to entry than investors of physical gold, all while enjoying many of the advantages of gold as an investment.


How to buy into gold ETF in Singapore?

Currently, SPDR® Gold Shares is the only gold ETF product in the Singapore market and is pegged to the price of gold bullion, using the LBMA Gold Price PM as its benchmark. SPDR Gold Shares can be traded in both SGD and USD, which offers a degree of flexibility for those who have both currencies on hand.

It offers a convenient and flexible access point to the gold market without any of the inconveniences and costs of owning physical gold. For instance, investors can freely buy and sell SPDR Gold Shares on the Singapore Stock Exchange (SGX) in the same way as they would trade stocks.

It is a cost-effective way to trade gold, as a one-ounce purchase of gold through SPDR Gold Shares can cost less than an equivalent purchase of physical gold due to lower transaction, purchase, storage and insurance costs. In fact, SPDR Gold Shares offer an annual total expense ratio of just 0.40%.

The ETF offers a high degree of transparency, with share prices and market data being freely available at the SPDR Gold Shares website. You can track and analyse price movements before deciding when to buy or sell your gold ETF.

Secure custody of gold bullion deposited with and held by SPDR Gold Shares is provided by HSBC Bank plc at its London, England vaults.

SPDR Gold Shares is included under the CPF Investment Scheme (CPFIS) – Ordinary Account and Supplementary Retirement Scheme (SRS). This means you can now use some of your CPF Ordinary Account savings to invest in the gold ETF. Plus, you can also invest in SPDR Gold Shares through your Supplementary Retirement Scheme (SRS) savings!


Get started with SPDR Gold Shares now

Investing in gold can protect you from market turbulence — and in these uncertain times, we need all the help we can get! Plus, a gold ETF is an easy, flexible and cost-effective way to gain exposure to the gold market without the inconveniences of having to buy physical gold.

If you’re ready to invest in gold, find out more about SPDR Gold Shares here. You can also buy it on SGX — just search for the ticker symbol GSD or O87.


Important Disclosure: Sponsored by State Street Global Advisors Singapore Limited (Company Reg. No: 200002719D, regulated by the Monetary Authority of Singapore). This advertisement has not been reviewed by the Monetary Authority of Singapore. All forms of investments carry risks, including the risk of losing all of the invested amount. Such activities may not be suitable for everyone. The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell an investment. It does not take into account any investor’s particular investment objectives or investment horizon. The prospectus in respect of the Singapore offer of the SPDR Gold Shares (the ‘Shares’) is available at The value of Shares may fall or rise. Investors should read the prospectus before deciding whether to purchase Shares. Investors have no right to request the World Gold Trust Services, LLC, State Street Global Advisors or any of their affiliates to redeem their Shares while the Shares are listed. Listing of the Shares on the SGX-ST does not guarantee a liquid market for the Shares.

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