The &#34;roller coaster&#34; market for spot gold prices continues, having quickly recovered to the price level of $5,000 per ounce (approximately SGD 6,311.47) after a rapid decline not seen in decades. Gold prices have risen over 70% in the past year.
During the period of extreme volatility in gold prices, the enthusiasm for buying gold is &#34;unstoppable.&#34; Many precious metal dealers' websites show that some gold bars are out of stock; over 70% of the gold products at United Overseas Bank are in a state of being out of stock, and they recently announced that they will no longer accept walk-in requests for gold purchases or conversions.
Tom Holl, a portfolio manager at Blackrock, and Barbara Velado, a product strategist, stated in a recent report that the driving factors for rising gold prices in 2025 remain strong. Ongoing macroeconomic uncertainty and structural currency depreciation trades have led to investor aversion to holding cash, which will continue to support rising gold prices in 2026.
As demand for gold investment surges and price volatility increases, various fees that were previously inconspicuous in gold trading have become hard to ignore.
Retail investors have a wealth of channels to invest in gold. In addition to physical gold, there are paper gold, exchange-traded funds (ETFs), stocks of gold mining companies, or related funds; investors with more knowledge and higher risk tolerance may also consider gold futures.
Investing in physical gold is generally done in grams or ounces, with purity ranging from 99.5% to 99.99%. It should be noted that gold is measured in troy ounces, with one ounce equal to approximately 31.1 grams.
Recently, some investors have noticed that when they purchase physical gold from dealers or banks, the unit price compared to the spot gold price seems to have a higher &#34;premium&#34; than before.
Vergel Villasoto, a director at Singapore precious metal dealer Silver Bullion, stated in a recent interview that due to supply shortages, the spread on physical gold has indeed slightly widened and continues to expand.
The difference between the buyer's bid price and the seller's asking price is known as the spread. When liquidity is low or price volatility increases, intermediaries will widen the spread to cover the increased trading costs due to the difficulty of transactions and the pricing risks brought about by rapid price changes.
Villasoto used a one-kilogram gold bar (approximately 32.15 ounces) as an example, stating that when gold prices were below $4,000 per ounce, the average spread was $50 per ounce; now that gold prices have risen to over $5,000, the spread for a gold bar priced at approximately $162,000 has expanded to about $105 per ounce (approximately SGD 133).
![](https://dss0.zbstatic5.com/s3fs-public/articles/2026/02/13/20260213newsdifferences2.jpg?
For precious metal traders like Silver Bullion and BullionStar, specific data on buy-sell spreads is usually disclosed on product pages. On the UOB gold and silver quotation website, the differences between the bank's selling and buying prices for gold can be queried.
UOB Group's Global Financial Officer, Huang Weihao, stated in an interview: &#34;We regularly review and adjust the gold buy-sell spreads based on current market conditions and our assessment of overall economic development and operational factors. Therefore, the spreads will change over time and constitute a part of the total cost of any transaction.&#34;
On the trading side, general customers must visit the store and directly inquire with the staff about the spreads.
Yao Lizhen, Managing Director of ValueMax, reminded in an interview that due to processing and packaging costs, the spreads for smaller gold bars will be higher.
<h3>Higher Spreads for Pawned Gold</h3>
If consumers are pawning gold instead of selling it directly, the spreads are often slightly larger. This is because the traders need to hold the gold for a longer period and bear the impact of gold price fluctuations during that time.
By observing the changes in spreads, investors can avoid inadvertently incurring higher costs when the spreads are &#34;too expensive&#34; for buying gold.
Individuals purchasing physical gold also have to bear storage costs. Local precious metal vault service provider The Safe House pointed out that if only holding a few ounces of gold bars or a small number of coins, they can be stored at home.
Buying &#34;paper gold&#34; does not carry storage burdens. Currently, both UOB and OCBC Bank offer precious metal accounts, with the former also providing &#34;Gold certificates&#34; products.
UOB charges certain fees for metal accounts and gold certificates; OCBC Bank states that its &#34;paper gold&#34; prices already include buy-sell spreads with no additional fees.
<h3>Gold ETFs are &#34;Most Friendly&#34; for Beginners but Watch for Tracking Errors</h3>
<h4>Further Reading</h4>
Gold Prices Fluctuate Wildly, What Should Retail Investors Be Aware of When Investing in Gold?

 [Local Gold-Related Stocks in High Demand, Some Companies' Stock Prices Have Increased Over Fourfold 
 
![](https://dss0.zbstatic5.com/s3fs-public/styles/article_small_crop/public/articles/2026/02/13/CHINA-MARKET-GOLD-034850.jpg?
For retail investors, a more suitable entry point is to purchase gold ETFs through stock brokerage platforms. These funds track gold prices, allowing investors to benefit directly from rising gold prices with lower capital costs, and they offer higher liquidity than physical gold or paper gold.
In 2004, State Street partnered with the World Gold Council to launch the SPDR Gold Shares ETF, which is one of the most popular and liquid physical gold ETFs and currently the largest of its kind globally.
This fund is also listed on the Singapore Exchange (SGX), offering versions priced in Singapore dollars and US dollars.
However, the investor education platform Beansprout reminds that investing in gold ETFs also requires consideration of potential risks. Firstly, when gold prices are highly volatile, the performance of more liquid ETFs may be more easily affected. Additionally, due to operational costs and other factors, physical gold ETFs may also experience slight tracking errors.
The gold tracked by physical gold ETFs is a non-interest-bearing asset, and potential returns come entirely from price fluctuations, so there will be no regular income such as dividends.
At the same time, gold ETFs also incur a certain expense ratio, which generally ranges from 0.25% to 0.5% per year.
<img src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/02/13/20260213newsexpenses.jpg/query-MTAyNA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://dss0.zbstatic5.com/s3fs-public/articles/2026/02/13/20260213newsexpenses.jpg/query-MTAyNA"/>
The smart investment advisory platform StashAway also points out that, in addition to the fees charged by the ETFs themselves, investors generally incur trading fees or commissions when trading through different brokerage platforms, charged at varying rates or fixed amounts.
If investing in gold mining company ETFs or stocks, investors can not only enjoy the benefits of rising gold prices but also receive dividend income. BlackRock's Hall also believes that many gold mining companies' stock valuations are still relatively low, and if managed prudently, there is potential for appreciation.
Additionally, stocks of jewelers and gold-related businesses may benefit from rising gold prices due to their business characteristics, making them worthwhile investment targets.
However, the stock prices of these companies are also influenced by their operational efficiency, profitability, and strategic layout; if gold prices experience a significant pullback, it will similarly impact related stock prices.
<h3>Trading Gold Futures Can Yield Big Profits or Big Losses</h3>
Experienced investors can also trade gold futures to gain returns from future gold price movements and use leverage to &#34;amplify&#34; higher returns
Futures are standardized contracts that allow traders to buy or sell a fixed quantity of commodities at a predetermined price on a specified future date. Currently, the New York Mercantile Exchange (COMEX) is one of the largest and most active gold futures trading markets in the world, where retail investors can participate in trading gold futures contracts launched by COMEX.
Although it is not yet open to retail investors, Lin Shanmei, the Director of Investment at Abaxx Exchange, stated in an interview that the trading volume of gold futures contracts at Abaxx Exchange has increased by 40% in the six months ending in February this year.
He Shaoqin, Managing Director of Overseas Chinese Securities, mentioned in an interview that gold futures contracts in Singapore are classified as Specified Investment Products (SIP). According to regulatory requirements, retail investors must undergo a Customer Account Review by brokers to ensure that they possess the relevant knowledge or experience and understand the risks and characteristics of such products before trading.
According to the Chicago Mercantile Exchange (CME), currently over 90% of futures contracts are traded electronically, with all transactions and prices publicly available in real-time, providing liquidity and market size far exceeding that of gold ETFs.
<h3>Unable to Meet Margin Calls Faces Risk of Forced Liquidation</h3>
One of the features of futures contracts is that investors can use leverage to control larger trading positions with a lower capital investment, thereby betting on higher returns from rising gold prices. However, leveraged trading can amplify profits, but it also increases potential losses.
He Shaoqin pointed out that when using leverage, investors may even lose their principal, and they should keep this in mind and set stop-loss orders on each open position. Brokers will continuously monitor and ensure users' margin balances, and investors may be required to make additional margin payments (margin call) to maintain their positions.
If they are unable to meet the margin calls, He Shaoqin said, &#34;Investors will face the risk of forced liquidation.&#34;
<h3>&#34;Financial Tips&#34; Invites Readers to Write In</h3>
If you encounter financial difficulties in life or face bottlenecks in investment, please email zbcj@sph.com.sg, and we will ask experts to answer your questions one by one

03170

GDXW

Under geopolitical and macroeconomic uncertainty, gold investment demand is expected to grow by 84% in 2025, with gold ETF demand reaching the second highest level in history. Despite the high enthusiasm for gold investment, the spreads of intermediaries and potential additional costs cannot be ignored. Spot gold prices are highly volatile, and some gold bars are out of stock, so investors need to pay attention to transaction fees and purchasing channels. Professional investors may consider gold futures, while retail investors can participate in investments through various means such as physical gold, paper gold, and ETFs

Zaobao

HS GOLD ETF

Invesco Db Precious Metals ETF

Roundhill Gold Miners Weeklypay ETF

Kinross Gold

iShares MSCI Global Gold Miners

SD-GOLD

YieldMax Gold Miners Opt Inc Strgy ETF

ZHONGJIN GOLD

ChinaAMC CSI SH-SZ-HK Gold Industry Equity ETF

ChinaAMC Gold ETF

VanEck Gold Miners ETF

VALUEGOLD ETF

Agnico Eagle Mines

Zijin Mining

EFUND GOLD MI ETF

Newmont

GLOBAL X Gold Explorers

Sprott GLD Miners Etf

Pro Ultr GLD

VALUEGOLD ETF-U

Us Gbl GLD & Met

EFUND GOLD MI-U

iShares Gold Trust

Abrdn Gold ETF Trust

EFUND GOLD MI-R

VanEck Junior Gold Miners ETF

Abrdn Precious Metals Basket ETF Trust

SPDR GOLD TRT

Sprott JR Gold Miners ETF

SPDR Gold Shares

Financial Tips: Don't Be Blinded by Gold, Beware of Hidden Accounts That Thin Profits | Lianhe Zaobao