OCBC App Gold & Silver Paper Purchase Exceeds $ 1 Million In First Week
SINGAPORE – An OCBC Bank initiative to allow investors to buy and sell gold and silver has seen around $ 1 million worth of precious metals traded since October 25, the bank said on Friday. November.
Investors can now instantly create an account to trade real-time gold and silver in amounts as low as 0.01 ounces (0.00028 kg) on OCBC’s mobile banking app. This amount of gold would cost around $ 25 while silver would cost 35 cents.
The bank said it was the only financial institution in Southeast Asia to provide this service.
The move aims to make trading in precious metals easier for investors by avoiding the costs and hassle associated with the logistics, storage and security of owning physical assets.
In the past, Singaporeans had to wait several days for their account to invest in precious metals to be approved, or they had to go to a bank branch or retailer to purchase physical gold bars and wonder where to store them in any way. security.
Demand for precious metals has increased since the pandemic struck last year. The price of gold has risen 45% since March of last year while silver has climbed 60%.
Data from the World Gold Council shows Singaporeans traded around 2.7 tonnes of gold in the second quarter of 2021, up 125% year-on-year.
Young investors are also interested in gold. About 70 percent of the precious metals portfolio investors on OCBC RoboInvest – a service on the OCBC Digital app – are under the age of 40.
Investments on the portfolio have increased by around 5% mo this year and continue to represent 5% of the overall monthly investments on the platform. Investments in precious metals on OCBC RoboInvest have increased by 30% year over year.
OCBC’s executive director of investment strategy Vasu Menon said buying gold is one way to protect investment portfolios, as the precious metal often acts as a hedge against risk.
Gold lacks credit or default risk and is unrelated to business fundamentals which may deteriorate. Gold prices tend to rise when interest rates fall and the economy is weakened. low, ”he noted.