It has really been some time since I last wrote any post. A lot of things has happened since then, but in short, things haven’t been good the entire time. To have a brief update, I lost my previous job, was jobless for a few months, managed to find another job at another bank, and am now currently trying to make sense and adapt to the current work. The good thing about my new work is that it is finally a permanent role, but there is quite a fair bit of negativity and significantly heavier workload. Even though I have been here for a couple of months, but I am still adjusting to the work here. Every night I return home exhausted, finding myself very tired out and almost unable to do anything else. However, this is not the main aim of this post, I shall be talking about something else I decided to invest in, and as the title of the post suggests, it is the UOB Silver Savings Account (SSA).
After looking at the Gold ETF last year, I have been looking at other ways of investing in precious metals and alternative investments. I found it in the UOB Gold Savings Account (GSA) and UOB Silver Savings Account (SSA). As I have already invested in gold ETF, I am primarily more interested in the UOB Silver Savings Account. For more information you can refer to the link here http://www.uob.com.sg/personal/invest/goldsilver/overview.page. Note that I am not paid for advertising this. This was something which I personally invest in and hence, thought to share about it. Some of the basic characteristics of the account are as follows:
- Ability to buy and sell silver in SGD without physical delivery
- Minimum initial purchase of 10 ounces of silver
- Minimum purchase each transaction of 10 ounces of silver
- Perform transactions within the time of Monday to Friday, from 8am to 11pm
- Annual administrative fee of as low as 0.2 ounces per month or 0.375% on the highest balance per month, whichever is higher
- $30 plus GST levied for a/c closure within 6 months
Since the end of last year, I have been looking at alternative investments to invest in as the the equity markets were at an all time high. Fast forward a year later, and yet again, equity markets are at all time highs and bitcoin has crazy valuation. My gold etf purchase is still in the green and I am still holding onto them. I will only sell once I see a financial crisis unfolding. Not sure when, but it will happen eventually. Yet again, I am looking for alternatives. I have not been buying equities much this year as I got distracted by trading (and burnt in the process). My though process is still to bulk buy during financial crisis. As such, my equity investments will be quite limited. At the moment, I am looking for alternatives, and since gold etf the last year, I have set my sights on silver.
Silver is the Brother of gold. During crisis, as gold price spikes, silver prices follow as well, but doesn’t have the sharp movements as gold price. It actually has more industrial use rather than as a safe haven. However, I still think it’s a good idea to diversify my precious metals holdings. As Singapore does not have silver ETFs, and I do not plan to hold physical silver, I have been looking into alternative solutions for investing in silver. I have looked at silver ETFs listed in the US markets but they are mostly synthetically made and based on futures rather than spot silver prices. Furthermore, those which I have looked at are mainly leveraged funds which are not ideal. Hence, my foray into the silver savings account by UOB. I have been buying in rounds of 10 ounces over the past 2 months and I hope to build a sizeable amount by the end of the year. Typically, following the cyclicality of precious metals, year ends tend to be the price lows hence, I’m buying more now.
The silver savings account is not perfect though, and I see some issues with it, but it will do for now. The issues are :
– To me, it is like an unlevered CFD for silver. You pay for it in cash and you are not able to take physical delivery of it.
– There is a big spread.
– Price movements are not very fluid. They are fixed at multiple times within the trading time by traders.
Despite its issues, this will work for me as a silver investment for now. What are your thoughts on this? Let me know in the comments section regarding this.