At Citibank International Personal Bank, you can invest in gold to diversify portfolios into non-cash investments or hedge against economic and political uncertainties and reduce investment risk. In market conditions where the rate of inflation is steadily rising, gold investments are generally able to maintain value and can thus serve as an anti-inflation hedge for investors.
- Opportunity to spread your risks by diversifying into non-cash investments and as a currency hedge
- Competitive Gold Prices
- Credit facilities, based on your gold holdings with us
How does it work? An Example.
Assuming the current market price of Gold is at USD945 per ounce. With USD100,000 cash, you will be able to purchase 105.82 ounces of Gold (USD100,000/USD945 per ounce) and place this into a Citibank Gold Account.
|Scenario 1||Scenario 2|
|Gold Price||Assuming that the market price of Gold strengthens to USD960 per ounce||Assuming that the market price of Gold declines to USD930 per ounce|
|Value of Gold Account||USD101,587 (105.82 ounces x USD960 per ounce)||USD98,413 (105.82 ounces x USD930 per ounce)|
|Profit/Loss if Gold is converted back into USD||Profit of USD1,587||Loss of USD1,587|
Rates quoted in the above scenario are meant for illustrative purposes only and the levels shown are not indicative of future performance.
You must be aware that a traditional Gold account does not accord any interest. A traditional Gold account is also not transferable and its holdings can only be sold through Citibank Singapore Limited.
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What you will need
- A minimum investment of 35 ounces or 1 kg
- Investments in gold are subject to price fluctuations which may provide both opportunities and risks. There is no yield or interest generated and a loss may be incurred due to fluctuations in its price.
- Physical delivery of gold, or physical deposit or withdrawal and wire transfer of gold to and from the Gold Account is not permitted. You should therefore determine whether any gold investment is suitable for you in the light of your investment objectives, your financial means and your risk profile.
- Investments in gold are not insured products and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme.
- Gold investments are in Loco London Gold, where all transactions will be made subject to the rules of the Loco London Gold market. Gold here is defined as Loco-London Gold having a fineness of at least 0.995, which shall be valued in U.S. dollars per troy ounce.
- The value of the Gold Account is dependent on the market price of gold. Gold Account is designed to give customers an investment opportunity in the gold market where customers can enjoy capital gain when the price of gold appreciates.
- Gold Account is non-interest bearing.
* The above is only a summary of some of the key risks in investing in the product. Detailed risk disclosures are set out in the documentation relating to the specific product. Prior to entering into a transaction, you should ensure that you have read and understood the nature of all of the risks associated with the investment in order to determine whether the investment is suitable for you in light of your experience, objectives, financial position and other relevant circumstances. You should consult with your legal, regulatory, tax, financial and/or accounting advisors to the extent you consider it necessary in making your own investment decision.