How to Buy Gold for Spot Price in Singapore

The value of gold is commonly measured by a number referred to as the spot price. This price represents the wholesale melt value of gold on the market. The average consumer typically pays a rate much higher than the spot price, which is typically only paid by institutional investors  dealing in thousands of ounces of gold. Singapore is one of the few places where any member of the public can buy gold at spot price, without having a minimum order size.

Things You'll Need:

• Investment Capital 

Step 1:

Select the price point at which you will buy gold. The value of gold changes slightly from day to day. Identify the target price at which you would like to buy gold. Monitor the market with a financial publication or financial news network and wait for your ideal purchase price.

Step 2:

Go to Little India. Although Singapore is predominantly Chinese, the Indian section of the city is most widely known for it's gold suppliers. Little India is situated along Serangoon Road, between Kitchener Road and Bukit Timah Road.

Step 3:

Visit one of the many gold vendors located along Serangoon Road. Jewelers are referred to as goldsmiths in Singapore. Any of these stores sell their gold according to the current spot price. Because much of the gold comes in the form of jewelry, sometimes even antique items, the actual value of the item may exceed the spot price.

Step 4:

Discuss the amount you would like to spend. The merchant will weigh an amount of gold for you, based on the spot price, measured against the purity of the metal. For example, 24k gold is pure and will be weighed according to the spot price. However, 14k gold is only 58 percent pure, so it takes a larger quantity to meet the spot weight.


Tips:

Gold can also be sold to the same goldsmith you buy from, allowing you to profit by buying and selling from day to day.


References:

• Street Directory: Map of Little India, Singapore 
• Street Directory: Goldsmith Shops in Little India 
• National Geographic: Singapore Walking Tour: Little India Temples 
• Virtual Tourist: Little India, Singapore 
• Metropolasia: Little India Shopping

Resources:

• Your Singapore: Little India 
• The World Around: Singapore's Little India 

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How to Test Gold Purity with a Scratch Test

The value of gold depends on two factors; how much the gold weighs and how pure it is. The science of measuring the purity of gold is assaying. Professional assayers typically use specialized laboratory equipment  to certify the purity of gold down to the number of micro-particles. While this is not practical for the average person to do on their own, some methods will give a more general measure of the purity. One such method is to perform a scratch test, which will allow you to verify how many carats the gold is.

Things You'll Need:

• Touchstone
• Testing Keys
• Testing Solution

Step 1:

Visually inspect the gold. Look for any stamps or other markings that will identify the purity of the gold, particularly if the item is a piece of jewelry. Although these stamps are not always accurate, they will give you a good early indication of what you are working with so that you can narrow the number of testing keys you use.

Step 2:

Scratch the source gold on the touchstone. Find an obscure place on the item so that scratches will not be immediately evident. Press down firmly and rub the gold back and forth several times, so that the gold is scratched against the surface of the stone.

Step 3:

Scratch the test keys on the touchstone. Select two or three testing keys that you feel are probable matches for the source gold. Firmly scratch each key on the touchstone in an area near the scratch of the source gold. Remember which scratch belongs to which testing key.

Step 4:

Drip one to two drops of testing solution onto the scratch test area. Note that the scratches begin to change colors, with each degree of purity being a different color.

Step 5:

Look at the color of the scratches. Compare the color of each scratch to the color of each tuning key. Matching the color of the scratch with the color of the key will tell you that the source gold is the same purity as the key that made that particular scratch. 


Tips:

Using a scratch test is not a scientific measurement of purity. It is, however, an accurate assessment for on-the-spot verification of gold purity.


References:

• Ruby Lane: Precious Metal Testing: A Beginner's Guide
• Shore International Corporation: Instructions for Scratch Testing Gold, Platinum and Silver

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How to Buy Cheap Gold Online

Many experts agree that investing in gold is a good way to hedge your investments against long-term inflation. Not only is investing in gold a great long-term strategy, but buying and selling gold actively can also produce lucrative short term profits. Opportunities to buy and sell gold are abundant, but many people are finding that one of the best places to look for cheap gold is the Internet. Many investors buy their gold exclusively online, due to the low prices they can find.

Step 1:

Watch the market and wait for the ideal conditions. The gold market goes through long-term highs and lows, but within each of these periods, day-to-day price fluctuations can be used to earn profits. Determine what your ideal purchase price will be in order to earn the desired profit when you sell the gold, then wait for the market price to reach that level before you buy. You can find the current gold rates by checking kitco.com or by checking the stock section of your local newspaper.

Step 2:

Consider purchasing bullion from the American Precious Metals Exchange (APMEX). This exchange buys and sells all forms of gold bullion, including coins, bars and ingots. Whether you're looking for American Buffalos, Chinese Pandas or even just 100-ounce gold bars, you can find a large inventory available on this exchange. There is also a large amount of antique gold from around the world, opening up the market to collector-value coins as well.

Step 3:

Buy scrap gold whenever the opportunity presents itself. Online auctions are an excellent place to buy scrap gold. Stay clear of circuit boards and micro chips unless you want to get involved in chemically reclaiming the gold. Focus on old rings, broken earrings, necklaces and similar items. These items can often be purchased at rock-bottom prices, and then sold as melt scrap.

Step 4:

Check online gold marketplaces for people who are looking to offload gold bullion they have been saving. Sometimes people need to liquidate gold to cover unexpected expenses, or in some cases they may have held it so long that a price you consider a steal is actually a nice profit for them. Regardless of the circumstances that have led the sellers to place their gold on the market, there are some great deals that can be found by shopping at online marketplace sites, such as the Bullion Direct Nucleo Exchange.


Tips:

Gold can be either bought and sold daily for short-term profits, or stored until long-term rate changes occur.


References:

• Kitco: Live Market Quotes
• APMEX: About APMEX
• Bullion Direct: Nucleo Exchange

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How to Make Money Online with Digital Gold

Gold enjoys a positive reputation in the investment  community. Many people consider gold to be more valuable than currency because its relative value remains consistent even as the value of individual currencies rises and falls. Some of the positive association people have with gold is carried over to the electronic version, giving digital gold the perceived credibility that it needed to become a profitable investment. There are a number of ways to make money online using digital gold, without requiring any special training or degrees.

Materials:

• Investment Funds

Step 1:

Learn and understand the basics of how digital gold works. Rather than making deposits and withdrawals directly from your digital gold account, the gold is bought or sold through an exchanger. An exchanger is a company or person who either has digital gold to sell or wants to buy gold. Professional exchangers provide both services to gold users. Becoming an exchanger is the shortest path to profits with digital gold.

Step 2:

Raise the investment capital  that you will need to start an online currency exchange. Those who can raise a significant amount of investment cash can start a larger-scale operation, but even raising an amount from $2,500 to $5,000 will allow you to start buying and selling digital gold for a profit. Personal savings, loans from friends and credit-card cash advances are popular ways to raise the money to start a digital gold business.

Step 3:

Conduct research to determine which digital gold platforms currently have the highest demand. These can change over time, so it is best to read gold investment forums to see what kind of digital gold people are buying and selling the most of. Identify and select the top five digital gold options on the market for your initial launch.


Step 4:

Open an account at each of the digital gold platforms you will be working with initially. Make a small deposit  into each account using a third-party exchanger. Keep your starting deposit small. You want to buy only enough gold to have some available when a customer wants to purchase digital gold from that platform. You do not want to make too large of an initial purchase, however, because it will add to the profits of an exchanger you will be competing with. Most of your deposits should come by way of customers who are looking for an exchanger to cash out their gold account.

Step 5:

Consider using a currency exchange software program to automate part of your business operation. Most currency exchanges are processed manually, but there are software programs available for those who want an automated system. These programs typically extend their functions beyond buying and selling gold, and also offer the ability to perform currency-to-currency trades and various other transactions.

Tips:

Embrace the profit potential of this business. Digital gold exchange services collect profits from both ends of the transaction. When a customer uses the exchanger to buy gold, he or she is charged a fee that is based on how much gold the person is buying. When the same customer cashes out his gold account, he pays fees associated with the withdrawal.

Warnings:

Spikes in the gold market could cause fluctuations in profits. Keep a buffer zone in your profits at all times to accommodate this possibility. Also, be wary of credit-card purchases. It is common for gold to be held for three days if the purchase is made via credit card, particularly for first-time customers.

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