Buying gold in Singapore for the first time: a practical guide

Gold bars or gold coins for a first purchase

A bar is gold at its plainest. It is a flat rectangle stamped with the refiner's mark, the weight, the fineness (usually 999.9) and often a serial number. Small bars from refiners such as PAMP, Valcambi and Argor-Heraeus usually come sealed in a printed card that repeats those details, so you can see what you have without opening anything.

Coins come from national mints such as the Perth Mint and the Royal Canadian Mint. They carry a design and a face value, but the face value is nominal. What a coin is worth comes from the metal in it. Striking a coin takes more work than making a bar, so coins generally carry a little more over the metal price than a bar of the same weight. Some customers like coins because they are widely recognised. Others prefer bars for their simplicity. Either is fine, and we won't choose for you.

One detail often surprises first-timers. The American Gold Eagle and the Krugerrand are 22 karat, or 91.6% gold, yet each still holds a full troy ounce of pure gold. The extra alloy makes the coin a bit heavier and harder wearing. The Maple Leaf, Britannia, Philharmonic, Kangaroo and Buffalo are 999.9 fine.

Then there is tax. Since 1 October 2012, investment precious metals have been exempt from GST in Singapore. For gold, that means bars, wafers or coins of at least 99.5% purity that meet IRAS's conditions, for example bars from an accredited refiner carrying its mark, fineness and weight. Jewellery does not qualify. IRAS's e-Tax guide on investment precious metals has the full rules.

Choosing a weight: grams, ounces and tola

Gold is sold in a mix of metric and traditional units, which takes a little getting used to. The troy ounce is the standard unit for bullion, and it is heavier than the ordinary ounce in a cake recipe. The tola is a traditional unit you will still hear in South Asian communities here.

As a rule, smaller pieces cost more per gram. A 5g bar needs much the same making, packaging and handling as a 100g bar, so those fixed costs are spread over less metal. Larger pieces bring the cost per gram down. They also put more money into a single item, and you can't sell half a bar later. That is why some people end up holding a mix of sizes.

When you compare products, divide the total price by the weight rather than looking at the headline price alone. That gives you the real cost per gram.

• 1 troy ounce = 31.1035 grams
• 1 kilogram = about 32.15 troy ounces
• 1 tola = 11.66 grams
• Small bars are commonly made in sizes such as 1g, 5g, 10g, 20g, 50g and 100g; our online shop shows what is in stock today

What the premium on gold is and where to see it

Gold has a world spot price that moves throughout the trading day. Our prices follow that live spot price, so the figure you see at lunchtime may not match the one in the evening. At weekends, when the world market is closed, we sell at the last closing price.

The premium sits on top of spot. It covers refining or minting, packaging, shipping, testing and the dealer's margin. It varies by product, and a small coin from a well-known mint will usually carry more than a large bar. We show the premium openly on every product page, so you can see how each price is made up.

You won't find figures in this guide, because they go out of date within hours. For current numbers, see live prices and charts on our market page at bullionking.sg/market.

Paying for your gold, and what to bring

Online orders are paid by PayNow or bank transfer. In the shop you can also pay by cash or card, as well as PayNow or transfer. Card payments carry a fee, so check that before you tap. Since our prices follow the market, the price is set at the time of your purchase, not the time you first looked.

For purchases above S$20,000, we take your NRIC or passport details. We aren't being nosy. Under the Precious Stones and Precious Metals (Prevention of Money Laundering) Act 2019, registered dealers must carry out customer due diligence and keep records for larger transactions, and this is how we meet that duty. The Ministry of Law has the full rules.

While you are at it, check that whoever you buy from is registered with the Ministry of Law. Our registration number is PS20260001016, and you will find it on our About page and in the footer of our site.

• Your NRIC or passport, if the purchase is above S$20,000
• Your phone with your banking app ready, for PayNow or transfer
• Your card, if you prefer it, bearing the card fee in mind

Collecting from the shop or having it delivered

Self-collection is free. You will find us at Centrium Square, 320 Serangoon Road, open Monday to Saturday from 12pm to 8pm and Sunday from 2pm to 8pm. No appointment needed. At the counter, take a minute to look your piece over: the card seal should be intact, the serial number on the bar should match the card, and the weight and fineness should be what you ordered.

Nothing leaves our shelves untested. Every piece goes through PMV (Precious Metal Verifier) and XRF testing, and PAMP bars also get a Veriscan check. Ask the staff what was done on yours if you are curious.

If you would rather not come in, we deliver within Singapore by courier. Try to be home when it arrives, and check the parcel and its contents straight away.

At home, keep bars in their original card. Gold doesn't tarnish, but our humidity is hard on paper packaging. A small airtight box with a sachet of silica gel costs very little and does the job.

Keeping your receipt and selling back later

Don't throw the receipt away with the shopping bag. It records what you bought, when, the weight, the purity and what you paid. Keep it with the piece and take a photo on your phone as well, because printed receipts can fade.

You will be glad of it later. It helps you keep track of what you spent, it makes things clearer for family if they ever have to deal with your gold, and it is handy if you decide to sell.

We buy gold and silver back. Bring the piece in and we test it at the counter, and the final amount is set after testing at that moment's price. An intact card and a receipt make it easy to see what the item is, though we test every piece regardless. More on how selling works is at bullionking.sg/sell.