Gold Price Up!

Gold broke away from a two-day losing streak Thursday as markets reversed directions from the day prior. The U.S. dollar fell with a thud as crude-oil recovered with a rallying frenzy and U.S. stocks jumped to near nine-month highs. Silver and platinum also gained.

How to Invest in Gold in Singapore

The UOB Gold Savings Account is probably the simplest, if not easiest way to invest in gold. According to the UOB website, you can buy and sell international gold - through a passbook - at prevailing market prices and transact any time during banking hours in units of one gm of gold, subject to a minimum of five gm per transaction.

To simply put, you are depositing cash into your UOB Gold Savings Account and the bank teller will convert your cash amount into grams of gold and record it in your passbook. This method of investment is considered as investing in paper gold. To sign up, all you have to do is to approach any UOB branch and ask to open an UOB Gold Savings Account.

You will be required to produce your identification card to open the account. The process is similar to opening a UOB cash savings account. Depositing and withdrawing from your UOB Gold Savings Account is just as easy. Simply approach the bank teller at any UOB branch to make your deposit. You must bring your passbook along for each deposit or withdrawal transaction.

As the transaction is considered a deposit and does not involve any purchasing, there is no Goods and Services Tax (GST) levied. Naturally, no premium for production of gold is charged because there is no physical gold involved. The bid spread of S$0.10 between the buying and selling price for each gram of gold is considered very thin as well.Sounds good so far? Like every investment vehicle, the UOB Gold Savings Account is not without its own set of disadvantages.

Firstly, you cannot withdraw physical gold from your UOB Gold Savings Account. Only cash withdrawals are allowed. Secondly, you will be charged an administrative fee (in grams of gold) of 0.12 gram per month or 0.25% p.a. on the highest balance per month, whichever is higher. This makes keeping low balances in your UOB Gold Savings Account not worth your while.

In my opinion, I find that the UOB Gold Savings Account is a good investment vehicle for investors who simply want their cash to be valued in terms of gold. I use my UOB Gold Savings Account for short term deposits because of the liquidity. The account also allows me to lock in on the price of gold at that period of time. Eventually, I will withdraw the amount to buy physical gold. So if ease of investing is valued, this arrangement might be ideal. For more gold investment articles, visit Bullion Gold

Try UOB if you are looking to buy gold in Singapore or trade gold in Singapore. I believe they are the only bank which deals in gold and silver. However they DO NOT allow delivery of physical silver from their silver accounts. The UOB gold account unlike the silver account allows delivery of physical gold. You can buy gold bullion coins such as Canadian Maple Leafs, Kruggerands, American Gold Eagles and Australian Kangaroos.

Australian property better?

June 15, 2008

Australian properties offer lower prices, higher returns ! Values in major cities are set to double every seven to 10 years on average
By Chia Yan Min

Luxury projects on offer in the Gold Coast include the Circle On Cavill, a waterfront project touted as Australia's tallest twin towers. More Singaporeans are going Down Under in search of viable property investments - and for good reasons.

Singaporeans are cashing in on a market where prices of equivalent properties are cheaper compared to l options here, and returns on investment are high.

The average capital growth rate in major Australian cities is about 7.7 per cent, meaning properties double in value every seven to 10 years on average. Rent yields in Australia are about 5 per cent on average.

Property values in major cities such as Sydney, Melbourne and Brisbane are also set to increase as they are currently facing net immigration, rising demand for housing and a housing supply shortage.

'Australia is not building houses fast enough and unless locals start living in tents, demand is set to continue rising,' said Mr Sean Parker, director of sales and marketing at JL Property Group.

Property agents are especially optimistic about growth in the Sydney market. Mr Parker described Sydney as a market 'primed for growth'.

Varied options

'Cities like Sydney are the equivalent of districts nine and 10 in Singapore. Properties there appreciate in value rapidly, but might have lower rent yields due to their higher cost. However, a property in a more suburban area like Darwin can have very high returns.'
MR JEREMY THOO, a general manager of Austpac International

Rents in Sydney rose 24 per cent last year due to a supply shortage. Rent yields in Sydney are currently at an average of 4 to 6 per cent.

Melbourne, another popular location, is seeing rapid property price escalations, with prices increasing by as much as 30 per cent over the past 18 months, driven largely by the owner-occupier market.

This is due to the location of several reputable universities in Melbourne.

Despite this, properties located a relatively short 4 km away from Melbourne's central business district are obtainable for an affordable A$500 to A$600 per sq ft, or about S$650 to S$780 per sq ft.

Investors looking for an alternative to these bustling cities might consider the more laid-back Gold Coast in Queensland, one of Australia's major tourist attractions.

While average rent yields are similar to the rest of Australia at about 5 per cent, rental prices escalate during peak tourist periods, for example during the Formula One season, said Mr Jeremy Thoo, general manager of Austpac International.

'Returns on properties in the Gold Coast are more cyclical and volatile compared to cities like Sydney and Melbourne, where renters will lease the property for longer periods. Tourists usually lease for about a week at most,' he said.

Recent high-profile luxury projects in the Gold Coast include the Circle On Cavill, a waterfront project launched last year by the Sunland Group. Touted as 'Australia's tallest twin towers', prices start from A$499 per sq ft, or about S$649 per sq ft.

Mr Thoo advises investors to consider whether they feel capital growth or returns on investment is more important before making a choice.

'Cities like Sydney are the equivalent of districts nine and 10 here,' he said. 'Properties there appreciate in value rapidly, but might have lower rent yields due to their higher cost. However, a property in a more suburban area like Darwin can have very high returns.'

Mr Thoo points out that the Australian market offers investment options such as serviced apartments, which are not available locally. As these are often rented to hotel chains, they offer higher returns than typical residential apartments.

He also notes that apartments tend to have higher rent yields of about 4 to 6 per cent, compared to houses which have yields of 2 to 4 per cent.

'Apartments are a more hassle-free investment,' he said.

One challenge Singaporeans face when investing in Australia is knowing who to trust. Mr Parker said buyers should look for property marketeers with a positive track record.

Palm Oil promising..

March 26, 2008

Palm oil promising for Asia but Africa may win edge
By Chia Yan Min

ASIA, especially Indonesia, could benefit greatly from rising palm oil prices in the next few years, but the region may eventually lose its edge to Africa, say agricultural business experts.

Mr David Jackson, director of oils and cereals research at British-based LMC International, said major Asian palm oil exporters such as Indonesia and Malaysia currently have an abundance of land for plantations.

However, labour markets in these countries are starting to see a squeeze, which is predicted to worsen within the next five to 10 years, he said.

This could drive up costs and move palm oil production out of Asia and into west and central Africa, where labour costs are lower and there is a vast land supply, Mr Jackson added. This is despite the political turmoil that investors will inevitably run up against in that region.

He was speaking on a panel at the Plantation Investment Asia 2008 conference held at the Grand Hyatt Singapore yesterday, as part of the four-day Agribusiness Asia 2008 conference.
Conference participants discussed the potential for investment in commodities such as timber and jatropha, said by some to be the next major development in the biofuels industry.

The future for agricultural commodities, including palm oil, looks rosy, they said.

'Palm oil prices have seen significant volatility in recent months, but they are likely to stay at healthy, high levels for quite some time due to strong demand. This is because of palm oil's significance as a component in cooking oil as well as its role in the biofuels industry,' said Mr Chris de Lavigne, vice-president of growth consulting at Frost and Sullivan. He was also on the panel.

However, Mr Jackson noted that suppliers across all commodity sectors have been responding to high prices and adjusting supplies accordingly, which could lead to an easing in the prices of oils, including palm and rapeseed.