OREANDA-NEWS. Year-to-date volatility in gold prices has meant that paper gold for investment purposes is in high demand. However, the physical world remains very much a buyer’s market. Physical demand from traditional buyers – like China and India – has been relatively muted. Against this backdrop, buyers (both investors and physical consumers) have every opportunity to hunt for better value by comparing prices, especially the premium over spot.

The SGX Kilobar Gold contract provides an opportunity to buy fresh gold at extremely competitive prices – equivalent to premiums of US$0.30-0.40 per troy ounce over spot. 

The SGX Gold Calculator computes the implied SGX premium, taking into account quoting conventions, alternate delivery locations and fees.

Apart from competitive prices, the SGX Kilobar Gold contract also provides buyers assurance of quality (only fresh bars from a select list of reputable LBMA/SBMA good delivery refineries) and delivery (guaranteed T+2 delivery). Moreover, with a term structure of six business days, the contract provides merchants and traders with an additional tool for managing short term cashflow and inventory needs.