Top 2 Reasons You Should Grab the Gold Now!
- Looking for security amidst volatile and uncertain times? In the current market situation brought about by covid-19 pandemic, we have seen gold’s strength in portfolio hedging and preservation and may be worthwhile adding to your investment portfolio.
- Instead of trying to predict Mr Market’s next move or the arrival of a crisis, it would be more productive implementing defensive strategies to hedge against such uncertainties and turbulence.
- Generally, Investor and central banks view gold as a global store of value, and often use it as an effective hedge against currencies.
Playing the Ratio Game: Gold and Silver
- Known as the “Crisis Commodity” for its ability to retain value during financial and geopolitical uncertainties, gold has appreciated in value over the past one year.
- Apart from gold, silver is another metal that could provide protection in times of uncertainty. Here are some reasons why you can also consider Silver as investment.
- As prices of gold and silver tend to move in tandem, potential investment opportunities arise when silver prices differ significantly from that of gold.
5 Reasons Why Gold Should Be In Your Portfolio
- If adding Gold into your investment portfolio has ever crossed your mind, then this video is for you.
- Here are 5 key reasons why Gold should be in every investment portfolio, as summed up by our analysts.
- Be warned though, the allure of Gold may just be too hard to resist now.
4 Reasons Why Gold Should Be Part of Your Portfolio
- All that glitters is not gold. At least that can be said when it comes to investing in gold.
- Gold has its ups and downs and if you were to buy (long) or sell (short) at the wrong time, your investment account will be in red for a prolonged period.
- Gold can be used as an excellent hedge against inflation due to the fact that it is not vulnerable on the effect of quantitative easing compared to fiat money.
- Geopolitical events have a positive impact on Gold’s price as seen in the previous 2007/2008 financial crisis and it has continued to maintain above the stated levels even after a considerable period of time.
Gold Surges to Multi-year High
Gold and silver are often referred to as safe haven commodities, where people often flee to its relative safety in times of uncertainties and volatility. Gold prices has surged and is trading at multi-year highs, amid the ongoing trade war between China and US, unprecedented interest rate cuts by the Federal Reserve and Brexit…Read More
What is the outlook for Gold over the next six months?
Over the next few months, Phillip Futures dealer Lim Jin Ru expects gold demand to go up. She explains why. Central banks are on gold-buying sprees and global economic conditions are worsening. A prolonged Sino-US trade dispute will generate rallies and sell-offs, but the extent of price movement depends largely on the severity of the situation…Read More
A Good Time for Gold : 4 Reasons to Buy the Precious Metal
2019 started off with massive uncertainty. While volatile market conditions make it more challenging for investors to plan their moves, the flipside is opportunities to gain are created if the right moves are made. Consider the current political and investing landscape. On the economic front, there is considerable unease surrounding trade tensions…Read More
5 Reasons Gold Should Already Be In Your Investment Portfolio
There are conflicting views regarding gold investments. According to the naysayers, physical gold is not as liquid as cash or some other forms of investment. Storing it can be expensive. Gold prices do not follow a regular pattern. It can be years before you make a return on your investment. Despite these shortcomings, the precious metal has been regarded as…Read More
4 Reasons Why Gold Should Be Part of Your Portfolio
All that glitters is not gold. At least that can be said when it comes to investing in gold. I am sure you will agree that like every other tradable instrument out there, gold has its ups and downs and if you were to buy (long) or sell (short) at the wrong time, your investment account will be in red for a prolonged period…Read More
Safe Haven – Gold or Bond?
We know that geopolitical instability is bad for businesses. This will no doubt cast some fear in investor’s mind and we should see more of them shifting funds into less risky asset classes. Less risky asset class like bonds will see a drop in yield due to the increase in demand. The prices of gold and gold-related equities are also expected to…Read More
Technical Analysis Reports
Technical Analysis: Gold
Gold has had a strong bullish start in 2020 by breaking the 1600 high point in the past decade. As the macroeconomic situation worsens with the spread of the COVID-19 virus, the safe heaven asset’s price appreciation appears to be slowing down despite having a strong uptrend momentum. However, based on current technical indicators, the strong bullish momentum should continue, but not before short-term correction.
Gold Breaks 7-Year High
From the US$1,200/oz level in July 2018, gold continued its bullish momentum till it broke through the US$1,350 resistance. It then rallied to US$1,550/oz, where it consolidated for a month till Dec 2019 before attaining the US$1,620 levels in mid Jan 2020. Last night, it began trading at levels last seen 7 years ago, and prices reached a new high this morning.
Gold – Bullish trend is intract but correction expected
- Gold had a strong move to the upside in May 2019 when it broke the 3-year resistance at 1377.41
- Gold had briefly crossed above the 1500 psychological level for a period of 3 months.
- Since the rally in May 2019, the precious metal has been floating above the 1450 level, signifying its strength.
Technical Pulse: Gold
Based on our technical analysis, the long term trend for gold is still bullish. However, it may enter into a short correction in the near term.
- There is a bearish shooting star below 78.6% of 05-1533.33.
- Head and shoulder formation.
- Tightening of the Bollinger band. This may signify a bearish breakout.
Commodities CFD Product Information
Why Trade Gold & Silver CFDs?
- Leverage: As commodities CFD is a leveraged product traded on margin, customers only pay a fraction of the contract value to gain exposure to the underlying commodity contract.
- Alternative Investment: Commodities’ value is typically not driven by the same factors that affect the prices of other asset classes such as stocks or bonds. Hence, commodities may serve as a good instrument to diversify one’s portfolio.
- No Storage Cost: Commodities CFD is a derivative; therefore customers do not actually own the commodity. Investors can gain exposure to price changes in the underlying commodity and avoid the risks and costs involved in owning physical commodities at the same time.
Gold & Silver CFDs
|Product||Value of 1 Index Point||Contract Size||Margin Requirements||Order Submission Range||Market Trading Hours||Settlement Currency||Dividend Adjustment|
|Gold USD1 CFD||US$1||US$1 x Gold USD1 CFD Price x Quantity||20%||+/- 5% from bid/ask price||07:01 – 04:00 (DS)|
07:01 – 05:00 (NDS)
|Gold USD100 CFD||US$100||US$100 x Gold USD100 CFD Price x Quantity|
|Silver USD50 CFD||US$50||US$50 x Silver USD50 CFD Price x Quantity|
Why Trade Contracts For Differences (CFDs)?
ETF Product Information
Physical Gold Backed ETFs:
New to Physical Gold Backed ETFs?
- Physical Gold Backed ETFs are convenient and cost efficient investment vehicles for investors to gain exposure to gold without having to pay for the logistic and insurance costs of holding physical gold.
- With Physical Gold Backed ETFs, investors can now easily buy and sell shares of the ETFs on exchanges and take advantage of the strategic and tactical properties of gold as a unique asset class for their investment portfolio.
ETF SPDR Gold Shares SPDR Gold MiniShares iShares Gold Trust Ticker GLD O87 2840 1326 GLDM IAU Exchange NYSE-MKT SGX HKEx TSE NYSE-MKT NYSE-MKT Trading Currency USD USD HKD JPY USD USD AUM (USD) 42.12 Billion 1.12 Billion 16.97 Billion Expense ratio 0.40% 0.18% 0.25% Board Lot Size 1 5 10 1 1 1
Gold Miner ETFs:
New to Gold Miners ETFs?
- Gold Miners ETFs are “highly leveraged” financial products due to the underlying nature of the gold mining industry. The high operational and financial fixed cost of the gold miners result in gold miners’ earnings to be highly susceptible to fluctuation in gold prices.
- Gold Miners ETFs’ share prices tend to be more volatile than Physical Gold Backed ETFs because of company-specific factors of the underlying companies. This mean that small changes in gold price can result in much larger differences in their net income and valuation multiples.
- Gold Miners ETFs can be potential tactical instrument for investors to take advantage of rising gold price and for traders to profit from excess return relative to gold price.
ETF VanEck Vectors Gold Miners ETFs VanEck Vectors Junior Gold Miners ETF Ticker GDX GDXJ Exchange NYSE-MKT NYSE-MKT Trading Currency USD USD AUM (USD) 12.12 Billion 5.01 Billion Expense ratio 0.53% 0.54% Board Lot Size 1 1
Futures and Spot Bullion Product Information
Trade a diverse range of precious metals products, get access to Spot/Futures/Low-leveraged gold & silver products, even physical gold.
Why Trade Gold & Silver with Phillip Futures?
- Diverse range of products: Trade a whole range of gold and silver products that caters to your individual needs.
- Trade precious metals on margin: Trade Spot gold and silver to gain full exposure with a small initial deposit.
- Low spreads: Trade with spreads as low as $0.3 for Spot gold.
New to Gold/Silver trading?
Gold and silver are precious metals, highly sought after as safe-haven products and a store of value.
- Spot Gold and Silver: Gold and Silver prices are quoted and traded against the US dollar. Phillip Futures offers spot gold and silver bullion in the following contract sizes: Regular, Mini & Micro.
- Gold & Silver Futures: Contracts with the precious metals itself as underlying assets. With commodities gaining popularity as an important alternative asset, you can now invest in Gold & Silver futures to enhance your portfolio diversification, hedge against inflation or your physical precious metal holdings, and potentially obtain returns while doing so.
- Gold Direct Investment (GDI) & Silver Direct Investment (SDI): Enables you to invest in the value of Gold and Silver with lower leverage. This is mainly suited for investors that have a longer tenure in their investments. The benefits of GDI/SDI, compared to conventional gold saving schemes offered in banks, will be the 0 commission trading, market that is open 24 hours/5 days a week and it has one of the lowest cost for gold investments in the market.
Spot Gold & Silver:
|Bullion Product Available||Standard Lot||Mini Lot||Micro Lot||Remark|
|in USD||Loco London Gold||100 Troy Oz||10 Troy Oz||1 Troy Oz|
|in SGD||Gold in SGD||N/A||10 Troy Oz||N/A||Also available in:|
EUR | JPY
|in USD||Gram Gold in USD||100 g||N/A||N/A||Also available in:|
|in USD||Loco London Silver||5000 Troy Oz||500 Troy Oz||50 Troy Oz|
Gold & Silver Futures:
|Product||Exchange||Trading Hours||Currency||Contract Size||Tick Value|
|Gold||COMEX||2020-0130; 0600-0500 (Globex)||USD||100 t. oz||US$10|
|E-mini Gold||COMEX||0600-0500 (Globex)||USD||50 t.oz||US$12.50|
|E-micro Gold||COMEX||2020-0130; 0600-0600 (Globex)||USD||10 t.oz||US$1|
|Mini-Sized Gold||ICE US||0800-0600||USD||32.15 fine t.oz||US$3.215|
|Shanghai Gold||COMEX||2020-0130; 0600-0500 (Globex)||USD||32.15 t.oz||US$3.215|
|Shanghai Gold||COMEX||2020-0130; 0600-0500 (Globex)||CNH||1000 grams||50CNH|
|Gold Kilo Futures||COMEX||2020-0130; 0600-0500 (Globex)||USD||32.15 t.oz||US$3.215|
|Silver||COMEX||2025-0125; 0600-0500 (Globex)||USD||5000 t.oz||US$25|
|1000 Oz. Silver||COMEX||2025-0125; 0600-0500 (Globex)||USD||1000 t.oz||US$10|
|E-mini Silver||COMEX||0600-0500 (Globex)||USD||2500 t.oz||US$31.25|
|Mini-Sized Silver||ICE US||0800-0600||USD||1000 t.oz||US$1|
Gold & Silver Direct Investment:
|Gold Direct Investment (GDI)||Silver Direct Investment (SDI)|
|Product||Spot Gold||Spot Silver|
|Trading Hours||24 Hours|
|Lot/Contract Size||1 Troy Oz||50 Troy Oz|
(99.99% of the notional value)
(99.99% of the notional value)
|Admin Fee||1% p.a on daily settlement price|
Unit Trust Commodities Product Information
Gold Miner Unit Trusts
New to Gold Miner Unit Trust?
- Gold Miner Unit Trusts generally invest in companies whose predominant economic activity is gold-mining.
- In Unit Trust investments, fund managers adopt active management and actively pick the companies to outperform fund’s benchmark over time. Active management provides fund manager the flexibility to hold cash in a down market, and buy low during periods of heighted market volatility. Thus, fund manager plays a pivotal role in the fund performance.
- Gold Miner Unit Trusts offer various currency share classes that are different than their base currency. SGD hedged share class will help investors reduce the impact of SGD currency movement against other currencies that may have on an investor’s returns. In an unhedged SGD share class, investor will be exposed to FX gains or losses.
- When gold prices fluctuate, gold mining companies may move faster in the same direction than anticipated by investors as there is a high positive correlation between them. Therefore, the investment returns for gold mining companies tend to more volatile.
BlackRock World Gold
- The World Gold Fund seeks to maximise total return. The fund invests globally at least 70% of its total assets in the equity securities of companies whose predominant economic activity is gold-mining. It may also invest in the equity securities of companies whose predominant economic activity is other precious metal or mineral and base metal or mineral mining. The fund does not hold physical gold or metal.
Fund Name Currency Min Investment Amount Fund Source BlackRock World Gold A2 EUR (LU0171305526) EUR 1000 Cash & SRS only BlackRock World Gold Fd A2 (Acc) SGD H (LU0368265764) SGD 1000 Cash & SRS only BlackRock World Gold Fd A2 (Acc) USD (LU0055631609) USD 1000 Cash & SRS only BlackRock World Gold Fund A2 AUD-H AUD 1000 Cash & SRS only BlackRock World Gold H A2 EUR (LU0326422689) EUR 1000 Cash & SRS only
DWS Noor Precious Metals Securities Fund Class
- The investment objective is to achieve capital appreciation in the medium to long term by investing in a portfolio of Sharia observant equity and equity-related securities of companies engaged in activities related to gold, silver, platinum or other precious metals or minerals. The fund will invest globally.
Fund Name Currency Min Investment Amount Fund Source DWS Noor Precious Metals Securities Fund Class A – USD USD 1000 Cash only DWS Noor Precious Metals Securities Fund Class J – SGD SGD 1000 Cash only
FTIF Franklin Gold and Precious Metals Fund
- The fund’s principal investment objective is capital appreciation. Its secondary objective is income. Under normal market conditions, the fund invests principally its net assets in securities issued by gold and precious metals operation companies. The fund principally invests in equity and/or equity-related securities such as common stocks, preferred stocks, warrants and convertible securities issued by gold and precious metals operation companies located anywhere in the world (including Emerging Markets) and across the entire market capitalization spectrum, including small-cap and medium-cap companies, as well as in American, Global and European Depositary Receipts.
Fund Name Currency Min Investment Amount Fund Source FTIF Franklin Gold and Precious Metals Fd A (Acc) SGD SGD 1000 Cash & SRS only
Schroder ISF Glb Gold Fd
- The fund aims to provide capital growth by investing in equities of companies in the gold industry. The fund invests at least two-thirds of its assets in equities of companies world wide involved in the gold industry. It will also invest directly in equities relating to other precious metals and indirectly in gold and other precious metals through funds. The fund may hold up to 40% of its assets in cash. The fund will not be exposed to any physical commodities directly, nor enter into any contracts relating to physical commodities. The fund may use derivatives with the aim of reducing risk or managing the fund more efficiently.
UOB United Gold & Gen Fd
- The fund aims to achieve returns on investment mainly in securities of corporations (whether or not listed on any stock exchange, and in any part of the world) whose business (in any part of the world) is or is substantially in the mining or extraction of gold, silver or precious metals (e.g. platinum, palladium, rhodium etc.), bulk commodities (e.g. coal, iron ore, steel etc), base metals of all kinds (e.g. copper, aluminium, nickel, zinc, lead, tin etc.), and other commodities (e.g. industrial minerals, titanium dioxide, borates etc.) and it includes the mining or extraction of oil, gas, coal, alternative energy or other commodities or other minerals, and other Authorised Investments as set out in Clause 1 of the Deed and as described in paragraph 20.6 of this Prospectus.
Fund Name Currency Min Investment Amount Fund Source UOB United Gold & Gen Fd SGD 1000 Cash & SRS only