How to Buy Gold ETFs in Singapore (2025 Guide)

Gold is having a year for the history books. As of 6 October 2025, spot gold trades at $3,921 USD per ounce, up an astonishing 49% YTD and nearly $1,800 USD higher than its 2023 levels. This is one of the steepest and most sustained rallies since gold was freed from the Bretton Woods system in 1971.

What makes this rally remarkable is its consistency and resilience. Instead of short-lived spikes followed by sharp corrections, 2025 has been a story of steady, grinding gains. Every brief pullback has been met with aggressive buying — from central banks, institutional allocators, and retail investors — pushing the metal through one psychological barrier after another.

And Wall Street believes this may just be the beginning. Goldman Sachs reiterated its bullish call, saying gold could average $3,700 USD by year-end and climb to $4,000 USD by mid-2026. The bank even floated a scenario where gold could reach USD 5,000/oz if private investors shift just 1% of their holdings out of the U.S. Treasuries into gold.

Global gold ETFs have seen record inflows this year, pushing total holdings past 3,692 tonnes (as of 5th Sep 2025), while futures trading volumes remain near decade highs. For many portfolio managers, gold is no longer just a defensive play — it has become a core strategic holding and one of 2025’s top-performing assets.

In this environment, investors aren’t just asking if they should buy gold, but how to get exposure efficiently. While physical bullion still has its charm, the modern investor increasingly prefers gold exchange-traded funds (ETFs) — instruments that combine the security of gold ownership with the liquidity, low costs, and ease of trading of listed securities.

What is a gold ETF?

A gold exchange-traded fund (ETF) is a listed investment vehicle designed to track the price of gold. It trades on major stock exchanges just like a share of DBS or Singtel, but instead of owning a company, you gain exposure to gold’s performance. 

Buying a gold ETF allows investors to participate in gold price movements without the logistical challenges of buying, storing, and insuring physical bullion.

Physically-backed gold ETFs

Physically-backed gold ETFs are the most common and trusted form. These funds hold investment-grade bullion stored in secure vaults in financial centres such as London, Zurich, or New York. Each share represents a fractional interest in the underlying gold.

A key feature of these ETFs is the creation and redemption mechanism managed by Authorized Participants — typically large financial institutions. They can exchange ETF shares for physical gold and vice versa, ensuring that the ETF’s price stays closely aligned with its net asset value (NAV).

Examples include:

• SPDR Gold Shares (GLD): The largest and most liquid gold ETF globally.

Synthetic or futures-based gold ETFs

Synthetic gold ETFs use derivatives — such as swaps, futures, or options — to replicate the price performance of gold rather than holding bullion.

This structure can sometimes lead to lower tracking costs and tighter spreads but introduces counterparty risk, as investors rely on the financial institution providing the swap or futures contract.

An example is the Invesco DB Gold Fund (DGL), which uses futures contracts to achieve gold exposure. These ETFs may be suitable for more sophisticated investors but are generally less popular with those seeking direct ownership.

Why investors choose gold ETFs

Gold ETFs combine the defensive qualities of gold with the convenience of exchange-traded securities. They offer:

• Liquidity: Buy or sell during market hours with immediate execution.
• Cost-efficiency: Typical expense ratios range between 0.25–0.50% annually, far lower than the cost of storing physical bullion.
• Transparency: Daily reporting of holdings and prices.
• Convenience: No storage, security, or insurance concerns — just a straightforward trade through any brokerage account.

For most long-term investors, physically-backed ETFs are considered the superior choice for their transparency, security, and direct link to the spot price of gold.

Benefits of gold ETFs vs. physical Gold

In Singapore, investment-grade precious metals are exempt from GST, so the choice isn’t about tax. Instead, it comes down to total cost of ownership, ease of trading, and portfolio flexibility.

Gold ETFs offer a streamlined, cost-effective, and highly liquid way to access gold’s performance. Here’s how they compare with physical bullion:

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Top gold ETFs to buy in Singapore

Investors can choose from Singapore-listed products for ease of trading in SGD, ultra-low-cost U.S. ETFs with deep liquidity, or UCITS-domiciled funds for tax efficiency. 

The right choice depends on your priorities — whether that’s minimizing costs, using CPF funds, or optimizing for estate-planning considerations.

SGX-listed gold ETFs: Convenient and CPFIS-Friendly

For investors who prefer to keep their gold exposure local — trading in SGD, avoiding FX conversion, and even tapping into CPF funds — SGX-listed ETFs are an attractive option.

These products are fully transparent, physically backed, and easily traded during Singapore market hours.

U.S.-Listed Gold ETFs: The Global Liquidity Leaders

U.S.-listed gold ETFs are among the largest and most liquid in the world. They are a top choice for cost-conscious investors who want the tightest bid-ask spreads and some of the lowest TERs available. 

With brokers like Moomoo, Interactive Brokers, Saxo, or Tiger Brokers; and digital investment platforms like StashAway, these ETFs are easily accessible even for non-U.S. investors.

Global UCITS-Domiciled Gold ETFs: Estate-Tax Efficient

For larger portfolios or investors conscious of U.S. estate tax exposure, UCITS-domiciled products offer a tax-efficient alternative. 

These funds, typically domiciled in Ireland, Luxembourg, or Germany, are not considered U.S.-situs assets, making them popular among international investors who want to hold gold without potential estate tax complications.

How to buy gold ETFs

Once you’ve selected the right ETF for your strategy, the next step is choosing where to buy it. The platform you use can meaningfully affect your total cost, user experience, access to global markets, and even tax reporting obligations. In Singapore, investors generally have three main options:

Local bank brokerages

These are the traditional brokers operated by banks such as DBS, OCBC, and UOB. They provide strong customer support and integration with existing bank accounts, but fees are higher, especially for U.S.-listed ETFs. 

Minimum charged commissions can also eat into returns if you trade in smaller amounts.

Global and fintech brokers

Platforms like Interactive Brokers, Saxo, Tiger, and Moomoo have disrupted the brokerage space by offering much lower trading costs, better access to international exchanges, and modern digital interfaces. 

However, investors should be mindful of platform fees, foreign exchange charges, and the need to manage tax reporting for overseas-listed ETFs.

Robo-advisors

Some robo-advisors offer both managed portfolios and direct ETF trading; for example, StashAway’s ETF Explorer lets you buy individual ETFs directly for a flat $1 USD per trade with no extra management fee.

Platform comparison

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Cost to watch out for

Even when ETFs themselves are low-cost, the associated fees can add up over time. Understanding the full cost stack is key to maximising your returns.

Brokerage fees

This is the one-time commission charged when you buy or sell. Depending on your broker, this can be as high as $25 SGD per trade with a bank brokerage, or as low as $1–2 SGD with international brokers or robo advisors. Choosing the right platform has an immediate impact on your cost base.

ETF expense ratio (TER)

The ongoing, built-in management fee charged by the ETF provider. A 0.25% TER on a $20,000 SGD position costs you $50 SGD every year, deducted automatically from the fund’s value. 

FX conversion fee

If you’re buying U.S.- or Europe-listed ETFs, you’ll need to convert SGD to USD or EUR. Most brokers apply an FX spread of 0.3–0.5%, which means a $10,000 SGD trade could cost you $30–50 SGD upfront. 

Bid-ask spread

This is the difference between what buyers are willing to pay and what sellers are asking. For highly liquid ETFs like GLD or IAU, the spread is usually just one or two cents and effectively negligible. But for smaller, less-traded ETFs, spreads can widen and eat into returns. The rule of thumb: trade during the ETF’s primary market hours (e.g. U.S. market hours for U.S.-listed ETFs) for the tightest spreads.

Custodian fees

Some traditional brokers charge quarterly safekeeping fees for holding foreign securities (e.g. $2 SGD per counter per month). These costs can add up if you hold multiple ETFs. Most brokers generally do not impose such fees, making them more cost-efficient for long-term investors.

Risks of gold ETFs

Gold can play an important role in stabilising portfolios, but it is not without risks. Understanding the limitations of gold ETFs helps investors use them wisely.

Price volatility

Gold is often called a “safe haven,” but its price is far from stable. In periods of strong economic growth or “risk-on” sentiment, capital tends to flow into equities, causing gold to underperform or even decline. For example, during the 2013 U.S. recovery, gold lost nearly 28% in a single year.

No passive income

Unlike dividend stocks or interest-bearing bonds, gold provides no income stream. All returns come from price appreciation. If the gold price stagnates or declines, your investment generates no yield, which can be a drag on long-term performance compared with income-generating assets.

Currency risk

For Singapore-based investors, most gold ETFs are denominated in U.S. dollars or euros. This introduces foreign exchange risk. For instance, if you buy a U.S.-listed ETF like IAU at $100 USD when the exchange rate is 1.35 SGD/USD (costing you $135 SGD), and a year later the USD weakens to 1.30 SGD/USD while the gold price stays flat, your investment falls in SGD terms to $130 SGD — a 3.7% loss solely due to currency movement.

Tracking error

Although most large, physically-backed ETFs track spot gold closely, some degree of divergence is inevitable. Management fees, trading costs, and small amounts of uninvested cash can create minor discrepancies between the ETF’s performance and the underlying gold price.

Counterparty risk (synthetic ETFs)

For synthetic or futures-based gold ETFs, investors face counterparty risk. If the bank or institution providing the swap or futures contract defaults, the ETF may fail to deliver its expected performance. While rare, this risk makes synthetic ETFs less suitable for long-term investors seeking security.

Alternatives to gold ETFs

Gold ETFs are the most efficient option for most investors, but they are not the only way to gain exposure to the precious metal. There are several alternatives, each with its own advantages and trade-offs.

Gold savings plans

Banks such as UOB and OCBC offer savings plans that allow you to accumulate gold through regular monthly deductions. This dollar-cost averaging approach is a disciplined way to build exposure gradually. 

However, you are usually buying unallocated gold at spreads that are wider than those available in the market, making it more expensive in the long run.

Physical bullion dealers

For those who prefer tangible assets, investment-grade bars and coins can be purchased from dealers such as BullionStar and Silver Bullion, as well as jewellers like SK Jewellery. 

While this gives you direct ownership, it comes with significant challenges: secure storage, insurance, and wider buy/sell spreads compared to ETFs.

Robo-advisors managed portfolios

Platforms like StashAway integrate gold exposure into their managed portfolios. This hands-off approach offers diversification and rebalancing without requiring investors to pick ETFs themselves, but it comes with a management fee and less control over the precise allocation.

Gold mining stocks and ETFs

Another indirect option is to invest in gold miners such as Newmont or Barrick Gold, or through ETFs like VanEck Gold Miners (GDX). These provide leveraged exposure: when gold prices rise, miners’ profits — and share prices — can rise even faster. 

However, this comes with added risks, including management execution, operational issues, and political risks in mining jurisdictions.

Frequently asked questions (FAQs)

Is a gold ETF halal and Shariah-compliant?

Yes, the vast majority of physically backed gold ETFs, like SPDR Gold Shares (GLD/GSD) and iShares Gold Trust (IAU), are considered Shariah-compliant by many scholars. The investment represents direct ownership of a tangible asset and does not involve riba (interest). Synthetic ETFs based on futures or swaps are generally not compliant. For certainty, consult a qualified Shariah financial advisor.

Can I buy a gold ETF with my CPF?

Yes. Under the CPF Investment Scheme (CPFIS), you can use your Ordinary Account (OA) savings to buy approved gold ETFs. As of 2025, this includes only SPDR Gold Shares (SGX: GSD). You’ll need to go through a CPFIS-approved broker such as DBS Vickers, OCBC Securities, or UOB Kay Hian.

How much of my portfolio should I invest in gold?

Most advisors recommend 5% to 10% as a strategic allocation. This provides meaningful diversification and downside protection without overly sacrificing long-term growth potential. More aggressive allocations may be suitable for those expecting prolonged uncertainty or inflationary pressure.

What’s the difference between GSD and O87 on the SGX?

Both are listings of the SPDR Gold Shares ETF on the Singapore Exchange. GSD is denominated in SGD, while O87 trades in USD. The underlying asset pool of physical gold is the same.

Are gold ETFs better than gold mining stocks?

They serve different purposes. Gold ETFs give direct exposure to gold prices with minimal additional risks. Gold mining stocks and miner ETFs (like GDX) are leveraged plays on gold prices but come with added risks such as operational execution, debt, and political issues in mining jurisdictions.

What’s the minimum I need to start investing in a gold ETF?

The minimum is usually the price of a single share. For example, GLDM trades at a much lower per-share price than GLD, making it accessible for small, regular investments. In Singapore, some SGX-listed gold ETFs can be bought in board lots of 10 units, which lowers the upfront cost even further.

Do gold ETFs pay dividends?

No. Gold does not produce income, and gold ETFs do not distribute dividends. Returns come entirely from price appreciation. Investors seeking income may prefer dividend stocks, REITs, or bond ETFs.

Can I lose money in a gold ETF?

Yes. While gold is often a safe haven, its price fluctuates. If gold prices fall or if the SGD strengthens against the USD, your investment could decline in value. Like any asset, it carries risk.

Is there a risk of the ETF provider “running off” with the gold?

For physically backed ETFs, the underlying gold is typically held in secure, audited vaults by reputable custodians (e.g. HSBC in London for GLD). Regular independent audits are conducted, and investors own a fractional share of the trust, not a claim on the manager itself. While not risk-free, the structure is designed to safeguard against misappropriation.

Should I buy a Singapore-listed ETF or a U.S.-listed one?

It depends on your needs:

• SGX-listed ETFs (e.g. GSD) are simpler if you want SGD trades, CPF eligibility, or no estate tax concerns.
• U.S.-listed ETFs (e.g. GLD, IAU, GLDM) tend to be cheaper and more liquid but may expose non-U.S. investors to estate tax.
• UCITS ETFs (Ireland/Luxembourg) can offer tax efficiency without estate tax exposure.