Where to buy gold? Is gold really cheaper in Asia?

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Hold onto your hats! Hong Kong has done it again, cementing its position as one of the ultimate bargain destinations for gold buyers worldwide. As we have previously highlighted, Hong Kong consistently ranks as one of the cheapest places globally to purchase the precious metal.

Believe it or not, I have personally snagged one ounce gold coins for as low as a measly 0.1% over spot in Hong Kong :). But wait, there’s more! Brace yourself for what’s next: rumor has it that Singapore may be stepping up its game and giving Hong Kong a run for its money in the future. However, for now, Hong Kong remains the top dog in the gold-buying world.

Hong Kong is in the place 1.

Hong Kong could be your top choice for purchasing gold, based on gold prices at the beginning of 2023. , Hong Kong offers gold at lower premiums compared to other countries, making it a cost-effective option for buying gold. However, to get the best prices, you would have to physically visit banks in Hong Kong. Hong Kong is renowned for its numerous banks with competitive premiums on gold coins, making it easy to invest without breaking the bank. There are multiple places to purchase physical gold in Hong Kong, with the Hang Seng Bank being the most popular. The bank provides several options for buying gold bullion bars, coins, and other products. And let’s talk about Bank of China, a financial institution that deserves a closer look. Do not confuse it with the People’s Bank of China, which is akin to the US Federal Reserve. While Bank of China may charge slightly higher prices for their gold products, you can rest assured that you are getting the real deal.

Sure, you could try your luck with small shops offering gold at lower prices, but do you really want to risk your hard-earned money on fake gold? The peace of mind that comes with buying from a reputable institution like Bank of China is priceless. After all, you can’t put a price on security when it comes to investing in precious metals. That being said, you can still make online purchases of gold from Hong Kong or other countries with low gold prices, but expect a markup to be added to the purchase price. This shouldn’t be a concern as long as the markup is reasonable and clearly stated.

Options

  1. Hang Seng Bank
  2. BANK OF CHINA (HONG KONG) (Do not confuse it with the People’s Bank of China, which is akin to the US Federal Reserve)
  3. Wing Lung Bank
  4. CMB Wing Lung Bank
  5. OCBC Wing Hang Bank
  6. HSBC

Buying Gold Hang Seng Bank, better coins that bars.

For example, when we looked in October 2022, the premium for a one troy ounce gold bar from Hang Seng Bank was only $5 USD over the spot price, so around 5.6% above the spot price This is a significant drop from their premium of 4.6% above the spot price in 2010, and customers should be aware that there are other prime rates available in the market.

However, purchasing gold bars can be risky as there are many counterfeits in circulation, often with Tungsten infill. Retail investors may not have the expertise to spot these fakes. Furthermore, Hang Seng Bank does not have an in-house checking mechanism to verify the authenticity of the bullion they buy. They mainly stock their own bars, which are manufactured by the RM or the Perth Mint, and also sell kangaroos supplied by the Perth Mint.

At the main branch of Hang Seng Bank, gold is readily available for purchase and sale without a reservation, but other banks require booking in advance. As a customer, you can use your account for transactions, while non-customers can buy gold using cash at the gold trading counter. When it came time to sell, Hang Seng Bank required receipts, which the author saved for most but not all transactions.

However, the risks of counterfeits, lack of expertise to verify authenticity, and the volatility of gold prices may not make it a worthwhile investment for many. Despite making some profits, the risks and storage costs outweighed the potential benefits.

Please notice that some countries have quite high duties to be paid on arrival with gold. UK you can take in kilos for free as long as they are known weighted investment grade. Good to know that Hong Kong is still the best. % premium on Britannias in UK. The Royal mint sometimes charges more but other dealers will sell their best value 1 Oz Britannia bullion (not necessarily as good condition) for no less than 6% over spot. No VAT. But silver has 20% VAT on top of that.

 BANK OF CHINA (HONG KONG)

Our profitability is directly correlated to the spread, and a lower spread translates into higher profits for us.

This morning, the spot price of gold denominated in Hong Kong dollars was HKD 15,542.00, equivalent to approximately $1,979.93 US dollars or 1,811.70 euros. Bank of China was quoting a buy price of HKD $15,625.00, which represents a premium of around 4% above the spot price. At the same time, they were offering one ounce Panda coins for sale at HKD $15,565.00, which is also approximately 4.1% over the spot price. Both their buy and sell prices were above the spot price.

It is noteworthy that Bank of China’s spread was just HKD $40, equivalent to approximately $5 US dollars. Such a low spread is impressive, given that the price of gold can fluctuate more than $5 in just a few minutes.

In the case of Maple Leaf coins, Bank of China’s premium over spot was slightly higher, at HKD $16,175.00, or roughly 4.5%. However, the spread remained similar at HKD $50, which amounts to just USD $6.45. This amount is negligible and is barely sufficient to purchase a coffeee at Starbuck in today’s economy.

Singapore is in the place 2.

Safest jurisdiction in the world. No threat of CCP. BullionStar is the best dealer. Open account on line. They will vault your holdings and send photos with serial numbers to your email. You can conduct physical audit to confirm holdings and serial numbers if in country. You can withdraw the physical holdings at any time and they can courier to your global location. You can trade holdings back to BullionStar online at any time at the prevailing rate.

However, it’s crucial to conduct research to ensure that you’re buying from a reliable source and getting a fair price.

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