Gold trade

[pojo]

Does anyone know whether 7% GST is charged when you buy physical gold, say, from UOB? I believe so. Also similarly is 7% GST charged when you buy gold jewellery at a goldsmith. If so, then buying physical gold seems like a bad investment because of GST. Compared with the 1% or so brokerage fee for shares, the transaction cost for physical gold is 7%. Which means that the gold price must rise more than 7% before you breakeven. Please correct me if I am wrong.

[UncleLim]

pojo:

Does anyone know whether 7% GST is charged when you buy physical gold, say, from UOB? I believe so. Also similarly is 7% GST charged when you buy gold jewellery at a goldsmith. If so, then buying physical gold seems like a bad investment because of GST. Compared with the 1% or so brokerage fee for shares, the transaction cost for physical gold is 7%. Which means that the gold price must rise more than 7% before you breakeven. Please correct me if I am wrong.

You are correct about the 7% GST. That is if you take delivery of the physical gold bars and bring it home. If you buy and leave it with UOB, you will collect your Gold Certificate of ownership, in which case GST does not apply.

[pojo]

Thanks for the confirmation and clarification, Uncle Lim.

[River]

micollh:

DesertWind:

Sounds really familiar. I was approached by one insurance agent about this physical gold investment before. Problem is the gold is sealed and you cannot break the seal. So how you know the gold is real? It takes trust. The risk is if the co. decides to close shop, you end up having the gold and the gold is not real, then how?


The returns are very attractive indeed. But if really interested may be better to go OUB and buy their physical gold cert. or bar.

For me, I siam by saying my father was in hospital (which was true) and escape that period of pestering.

but he told me he bring the gold to pawn shop pretend want to check the value.. and it's confirm is real

As far as I know, the gold given by Genneva is real. The downside is that your risk is 25% of your capital should the company go bust. The upside is 2% /mth is a real good deal. I classify this investment as moderate risk and high return.

[WeiHan]

It sounds quite ok to me as long as the gold they give you is real. The most you risk is 25% of your capital. But I guess, getting a gold bullion from genneva is 7% GST exempted? If the gold price goes up, you just keep the gold bullion on top of the 24%/per annum interest.

[River]

WeiHan:

It sounds quite ok to me as long as the gold they give you is real. The most you risk is 25% of your capital. But I guess, getting a gold bullion from genneva is 7% GST exempted? If the gold price goes up, you just keep the gold bullion on top of the 24%/per annum interest.

As of now, the gold is exempted from GST.

[ronseng]

Phsical gold trades can only be done at bullion.

[jolim26]

I have been good returns from gold investment too..:)

[peapot]

do you buy Gold from Genneva like trading shares?

[River]

peapot:

do you buy Gold from Genneva like trading shares?

It is similar.

But I think loaning money to the company using gold as a collateral may be a better way to describe the concept. The loan is renewed on a monthly basis.