* Holdings of Gold and Silver are usually recorded in grams (for gold) or ounces (for silver) and purchased quantities are credited to the holdings account and sold quantities are debited from the holdings account. Banks usually stipulate a minimum amount that needs to be bought or sold per transaction.
* Gold and silver can be bought or sold (without physcial delivery) from the branches of the account holding bank or via the online or mobile platforms provided by the bank.
* Gold and Silver Savings Accounts are accompanied by a passbook that lists out the holdings and the transactions done on these accounts. They are thus, in common parlance, called as Gold Passbook Accounts or Silver Passbook Accounts.
* You can also use the Ordinary Account Balance and the Special Account Balance (from 1 July 2010, only monies in excess of $20,000 in the Ordinary Account and $40,000 in the Special Account can be invested) in your Central Provident Fund account to invest in gold via Gold Savings Accounts subject to the bank’s rules and the rules of the CPF investment scheme.
Such investors will not be given a GSA passbook. Your gold holdings will be reflected in your CPF Investment Account monthly statement.
* CPF funds cannot be used for investment in Silver Savings Accounts as SSA is not one of the products allowed by the CPF Investment Scheme.
* Account balances in GSA or SSA accounts cannot be exchanged for or cSSA is not one of the products allowed by the CPF Investment Scheme.onverted to physical gold or silver.
* Gold and Silver Savings Accounts generally do not accord any interest.
* Holdings in Gold and Silver Savings Accounts are generally not transferrable and can only be sold through the respective bank’s platforms. The account holder may be at a disadvantage if the bank’s admin, foreign exchange, commission and other charges associated with this account are on the higher side. It is also pertinent to note that GST (Goods & Services Tax) is applicable on these charges.
* No worries or hassles experienced in storing and safeguarding physical gold and silver.
* The holdings in the Gold or Silver Savings accounts help to diversify one’s portfolio into non-cash investments.
* Gold and silver holdings also help act as a hedge against a range of economic, political and financial uncertainities.
* It could be possible to obtain credit facilities against the gold or silver holdings held.