Soaring gold prices push Singapore buyers towards bars and coins over jewellery

Mr Ho Nai Chuen, president of the Singapore Jewellers Association, said investment-grade gold bars are Investment Precious Metals that are exempt from Goods and Services Tax (GST). 

Mr Ho, who is also managing director at On Cheong Jewellery, one of Singapore’s oldest surviving Chinese jewellers, said this has influenced consumer behaviour. 

“That prompted some of the consumers to pick gold bars rather than buying gold jewellery, so that they can preserve the value of the currency,” he added. 

Retailers noted that even festive demand has been softer than in previous years, as consumers grow more price-sensitive. 

With gold prices climbing, some customers are opting for pieces that are lighter in weight. Among them are retirees and elderly buyers, some of whom have been priced out of buying new pieces altogether. 

As a result, more customers are selling or trading in old jewellery to capitalise on higher prices, said retailers.