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Top Questions to Ask Before Investing in SPDR Gold Shares Singapore Dollar Trading Counter


Why Invest In Gold?

Gold has a dual nature as it is both an investment and a consumer good. Gold’s diverse sources of demand, both cyclical and counter cyclical, have been the source of its low historical correlation to financial assets and its unique ability to provide key strategic benefits to the overall portfolio including:

Long-term Returns: Gold has delivered a 7.7% compound annual growth rate in USD terms since 15 August 1971, the day U.S. President Richard Nixon removed USD from the gold standard. Gold has historically provided positive risk adjusted-returns over time.1

Diversification:  Gold has demonstrated a low and negative correlation to many financial asset indices over time and has a track record of providing a hedge during periods of large market drawdowns, systemic risk, and geopolitical volatility.2

Liquidity: Global gold market liquidity is on par with major debt, currency, and equity markets. The average daily turnover of gold is over US$145 billion.3

Portfolio Impact: Adding an allocation to gold may potentially provide increased diversification, reduce portfolio drawdowns, and increase
portfolio efficiency through higher risk-adjusted returns.4


10 Key Questions

As investors increasingly look to gold ETFs, we answer 10 key questions to consider when investing in SPDR Gold Shares Singapore dollar (SGD) trading counter.

  1. Why did SPDR ETFs launch a Singapore Dollar trading counter now?
    The flexibility to access SPDR Gold Shares in both US dollar (USD) and SGD provides investors with an opportunity to seek further diversification benefits.
  2. What does this mean for investors?
    The introduction of SGD counter means that investors can now opt to invest in SPDR Gold Shares listed on the Singapore Exchange (SGX) either in USD or in SGD.  In other words, investors who prefer to use SGD to access the fund will now be able to do so. On the other hand, investors who prefer to use USD can continue to do so as well.
  3. Is the SGD counter of SPDR Gold Shares the same fund as the USD version?
    The SGD counter of SPDR Gold Shares is the same fund as the USD counter. Dual-currency trading offers investors the option to trade in two different currencies (USD and SGD) for a listed security. In this case SPDR Gold Shares is available to purchase in both USD and SGD.
  4. Are USD and SGD units of SPDR Gold Shares fungible?
    Yes, the two counters (USD and SGD) are fungible. For an investor holding a direct Central Depository (CDP) account, the CDP statement would only show one single entry even if the investor has bought the SPDR Gold Shares via two separate currency counters.
  5. Can an investor who owns SPDR Gold Shares in USD choose to sell the SGD counter and receive SGD proceeds (instead of USD proceeds)? And vice versa?
    Investors should contact their broker if they wish to sell units in a currency counter that is different from the one they have bought into. More information on dual currency trading is available on the SGX website.               
  6. Will there be daily Net Asset Value (NAV) published in SGD for SPDR Gold Shares SGD counter?
    The NAV of SPDR Gold Shares is published on each day that the NYSE Arca is open for regular trading, and is available on   www.spdrgoldshares.com.
  7. Are the physical gold for SPDR Gold Shares SGD counter being stored in the same vault as the USD version?
    Yes, the physical gold for SPDR Gold Shares SGD counter are stored in the same vault as the USD counter.
  8. What is the SGX stock code for SPDR Gold Shares SGD counter?
    The stock code for the SGD trading counter of SPDR Gold Shares is "GSD”.
  9. What is the minimum capital outlay or investment for SPDR Gold Shares SGD counter?
    The minimum capital outlay is equivalent to the price per share of SGD counter multiply by its board lot size, which is 5 shares. For example, assuming price per share of SGD counter is S$250, the minimum outlay will be S$250 x 5 = S$1,250. Please note the minimum capital outlay does not include other associated trading costs that the investor may  incur. 
  10. Can I use CPF monies to buy SPDR Gold Shares SGD counter?           Yes, investors may use savings in their CPFIS – Ordinary Account to invest into the fund.  Please kindly refer to the CPF website www.cpf.gov.sg or approach your CPFIS agent bank / brokers for details including any terms and conditions that may apply.