Gold Savings Deposit Account

Hi Mr. Tan,
I have been pondering whether to park some of my savings in a gold savings deposit account. I saw it being offered by a local bank. But there's an administrative fee (in grams of gold) as low as 0.12 gm per month or 0.25% p.a. on the highest balance per month, whichever is higher.

REPLY
Some people think that Gold has already gone up very high. If you invest in Gold, be aware about the risk that it may fall down to a lower level. However, if you hold this investment as part of a diversified portfolio, then it may be all right.

Apart from the administrative fee (which is quite low), you should also be aware that Gold does not earn any recurring income.

Some people prefer to buy shares of Gold mining companies as it produces an income. But they have to look at other factors, such as leverage and cost structure.