Purchasing gold jewelry is a long-standing tradition in Singapore. We show them off, buy them as gifts, and pass them on to our children. However, you shouldn’t mistake the bling as sound investments. Although precious metals like gold and silver are often great investments, retail stores will sell the precious metal at a significant markup once made into jewelry. This markup can often cost you between 60%-250% more than the precious metals and gemstones are worth at that time.
Taxes
The unfortunate truth to the engagement ring you just received or the necklace you just bought for your significant other is that the resale value will be significantly lower than the original price tag. There are several reasons, but jewelry comes with a 7% goods and services tax (GST) in Singapore. On the other hand, to promote Singapore as a trading hub for precious metals, the Singapore government removed taxes on investment-grade precious metals like gold and silver....