Understanding the Gold Price in Singapore: A Simple Guide
What is the gold price in Singapore? What are the gold price updates you need to know about? Most of all, what do all these questions mean, and why do they matter to you?
In this article, we at Starlight Jewellery will address one of the most essential factors in the gold market: the gold price and everything that revolves around it. This simple guide to gold prices in Singapore will cover everything from A to Z. So strap in, and let's get started.
Why should you know about the gold prices in Singapore?
Gold is one of the most preferred types of investments around the world, allowing people to widen their portfolios, diversify their assets, and bejewel themselves with gold jewellery in the process. While it is not a rule, you must know everything about the gold prices in Singapore and gold price updates before you invest in gold; it can certainly give you an upper hand in making the best decisions when you invest your money and make the most of it.
Significance of Singapore & Gold
Singapore has gained the honourable reputation of being one of the best places to invest in gold for several reasons. It is one of the sought-after geographical locations to buy gold because of the cheap prices compared to most other countries worldwide. It is also known for its cutting-edge technology and high-tech storage facilities that offer impressive levels of safety to store your golden investment, especially when you invest in physical gold.
Being an international hub for business, Singapore has taken steps to guarantee and safeguard the quality of gold. Singaporean gold is given credit certificates along with the accreditation by the London Bullion Market Association. (LBMA). Moreover, you do not have to worry about extra taxes when investing in gold, as after 2021, the Singapore Government exempted investment grade precious metals from the goods and service tax, which is equal to the VAT tax in Europe.
What determines the gold price in Singapore?
Despite what most people would think, the Singaporean government do not determine the price of gold. Even though the government and the Monetary Authority of Singapore can indirectly influence the gold price it is not enough to have a considerable influence on it.
The gold price in Singapore is influenced by a range of factors, therefore collectively determining the price of gold within contexts.
● Fiat Currencies
The gold standard of a country is a money-related system where the country's currency has a direct equivalency to gold, which means currency can be backed up by physical gold. Singapore switched to the gold standard in the latter half of the nineteenth century when other countries who were giants in trading, such as Japan, Thailand and India, chimed in. Therefore, the Singapore Dollar is now backed by precious metals like gold and silver, which are held in the nation's central bank. Because gold is a considerably steady investment that retains its original value over time, historically, people have turned to gold when there is a risk to their wealth.
● Supply & Demand
Every year, approximately 2500000 kilos of gold are mined; however, it is still not even meekly enough to fulfil the gold needs of the world every year. The reason that the gold price in Singapore has gone higher than it was 10 years ago is that less and less gold is mined every passing year. The experts predict that with less gold left to mine each year, the gold price in Singapore will be going up steadily in the future.
Gold is in high demand in a number of fields, which makes it a financially and vocationally desirable material despite its rarity in nature and difficulty in extracting pure gold. The gold jewellery industry, the field of medicine, and the areas of electrical engineering and aerospace engineering are only some of the fields that demand gold for their work and improvement.
When the demand for gold goes high, and the supply is scarce, the gold price in Singapore tends to go higher as well.
● Economy Changes in the Country
Gold generally has an inverse relationship with the economy. This means the more stable the economy of the country is, the lower the gold price in Singapore. This makes investing in gold an act of insurance in a way, as it acts as a protective shield against bankruptcy and financial downfall during periods of inflation.
In the present day, because gold is known to be a safe haven during economic crises, more and more people are investing in gold in Singapore. Anyway, it is wise to keep gold as an asset, whether it is jewellery or other types like gold coins or bars, to diversify your portfolio for future financial flexibility.
What is the gold price in Singapore?
The gold price in Singapore is taken by the weight and purity of the gold and changes according to the factors we have mentioned above.
Generally, the price for 1kg of 22k gold is 86941 Singapore Dollars. You may have seen 22-karat gold, more commonly known as 916 gold. This means a 22-karat gold necklace you invest in the next time you go shopping contains 91.67% pure gold in it.
The 24-karat gold goes for 94244 Singapore Dollars. This is more expensive than 22 karat or 916 gold as 24 karat jewellery contains a higher level of this beloved precious summer metal. Often not ideal nor suitable for jewellery, 24-karat gold has 99.99% of pure metal in it.
What else do you need to know?
When making other karats like 22 karats, 18 karats, 16 karats, 14 karats and 10 karats to design jewellery or any other gold product, manufacturers need to add various metals such as copper, zinc, nickel, palladium and silver and mix them in with the pure gold. By doing this, the manufacturers are able to give high durability, impressive versatility and strength against potential damage to the gold product which shapes the gold price in Singapore.
● Metal alloys and how they affect gold prices
Besides the main large-scale factors such as supply, demand and economy of the country, factors that may seem insignificant at first can make small changes in the gold price in Singapore. The metal combination created during the manufacturing process of a gold product can also affect the gold price in Singapore.
Some metal combinations are cheaper and more affordable than others. Typically, among the different types of gold jewellery, there are in the industry, White gold is known to be a little more expensive than both yellow gold and rose gold. When it comes to white gold, the usual metal composition is 75% pure gold mixed with 25% nickel and zinc, which results in the silver hue in the white gold jewellery.
However, white gold jewellery is also finished with a coating of rhodium, which is a costly metal. This rhodium coating gives the jewellery an extra layer of protection with the extra sheen but also results in the white gold price in Singapore going higher than yellow gold.
Against what most people would assume, yellow gold, therefore, is cheaper than white gold as it does not have a rhodium finish but is still more expensive than rose gold. The main reason for this is the metal composition of rose gold. Rose gold is 75% pure gold and 25% copper metal alloys. Copper is a readily available common metal, unlike gold in nature. Therefore, the 4: 1 ratio of metal with copper in rose gold makes the rose gold price in Singapore highly affordable to a lot of people.
● Designing effects on gold price in Singapore
The gold price in Singapore is not only influenced in the naturalistic and manufacturing levels but also at the design level. Just like any other product, the sweat and blood that goes into making a perfect product come to life and into the customers' hands has to be accumulated into the monetary value of the particular product.
Nowadays, with the improved technology, most gold jewellery is made and designed by man-made machines, which makes the process easier. However, there are aspects where that only a human can do when it comes to making jewellery. The creativity of the jeweller is what gives the jewellery that uniqueness we love so much when shopping and purchasing gold jewellery, which affects the gold price in Singapore.
While timeless classic gold jewellery can steal the hearts of most people, who can resist when a uniquely beautiful design is spotted on gold jewellery? The originality and the intricate manual work that goes into making that gorgeous necklace, bracelet, or ring place them on a higher pedestal when it comes to gold prices in Singapore. Moreover, additions like pearls, diamonds and other types of gemstones such as sapphire and ruby can also influence the gold price in Singapore when it comes to jewellery.
Finally…
So now that we have told you everything to know about the gold price in Singapore, you can feel confident and comfortable when going shopping and investing in some gold jewellery next time. From small-scale factors to large-scale factors shape the price of gold in Singapore; the quality of the gold you get is also paramount when making an investment.
It is crucial that you look for a trusted and reputed jeweller who presents their gold jewellery with full transparency. Even with strict laws and safety regarding the price of gold in Singapore, you can never be too cautious when buying gold jewellery as there might be a possibility of fraud. So be mindful when choosing your jeweller so that you can select and invest your money in gold with peace of mind.
Need a helping hand? With years of expertise, we at Starlight Jewellery will ensure we provide the best experience for buying the most worthwhile gold jewellery according to your personal preferences!