The gold rush again

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I recently saw this video on CNA Money Mind channel https://www.channelnewsasia.com/watch/money-mind-2024-2025/going-gold-4299741 and thought I would summarize some learning points for those interested in gold investment.

Photo by Zlaťáky.cz on Unsplash

  • Gold is viewed as a safe haven asset in time of uncertainty, crisis or geopolitical risks.
  • Demand for gold is influenced by Central bank purchases.
  • The purchase premium of gold decreases in % with relationship to the gold bar's weight. Eg, a heavier gold bar has lower purchase premium over a lighter one.
  • There's no GST for investment grade gold bars.
  • Gold-backed ETF is backed by physical gold.
  • Lower yield environment will benefit gold prices as the opportunity cost of holding gold lowers.


Source: https://www.statista.com/statistics/673513/monthly-prices-for-gold-worldwide/


As seen from the chart, the last mega price spike was in year 2019 to 2020. This year we saw another mega spike.

In order to circumvent any US withholding tax if I were to buy "on paper" gold, I might consider buying the Ireland domiciled gold ETF - https://www.justetf.com/en/etf-profile.html?isin=IE00B4ND3602#overview.


Thanks for reading!

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