Gold has been on an absolute tear.
In the past year alone, it delivered a whopping 69% return—making it one of the best-performing asset classes of 2025.1 And as prices climbed, so did the excitement. Everyone from financial professionals to your uncle at the dinner table suddenly had opinions on gold.
After hitting a high of US$5,354.80 per ounce on 19 January 2026, gold pulled back about 13% to US$4,652.60 by 2 February. And that’s when the questions really started flying.
Can we buy the dip? Is it too late?
Let us try to give you a more grounded answer.
What’s Actually Driving Gold?
Before we talk about whether to buy, it’s worth understanding why gold has run so hard.
The most important structural shift is that governments around the world have been loading up on gold reserves. This trend has been accelerating since 2023.
For the first time since year 2000, gold’s share of global reserves has overtaken USD-denominated assets as a proportion of total reserves in Aug 2025. That’s a significant milestone.
Why are central banks doing this? The US is more indebted than ever, and geopolitical tensions have been rising for years. When you’re sitting on massive piles of USD reserves, that starts to feel like concentration risk. Gold is the natural hedge—and governments are acting on it.
There’s also a more mechanical relationship worth understanding: gold is priced in USD, so when the USD weakens, it takes more dollars to buy the same ounce of gold. If you already hold a lot of USD-denominated assets, gold can act as a natural counterweight in your portfolio.
None of this means gold will keep going up in a straight line. But the structural demand from central banks is a genuine fundamental driver—not just FOMO.
Should Gold Be in Your Portfolio?
Buying gold isn’t about speculation. It’s not about betting that prices will keep rising.
Responsible investing means thinking about gold as an allocation decision—how much of your portfolio should it represent, and what role does it play?
To illustrate this, let’s look at what the data actually says.
We compared three portfolio constructions (Note: these are model portfolios for illustration purposes only, not actual funds managed by Lion Global Investors):
- The Permanent Portfolio – Harry Browne’s classic: 25% each in stocks, bonds, gold, and cash.
- The 10% Gold Portfolio – A modified version: 55% stocks, 35% bonds, 10% gold.
- The Classic 60/40 – 60% stocks, 40% bonds. The conventional benchmark.
Here’s how they’ve performed since 2011:
The 10% Gold Portfolio delivered 9.64% per annum—edging out the 60/40’s 9.51%. The difference isn’t huge but it did so with lower volatility (8.65% standard deviation versus 9.06%). So you got slightly better returns with a smoother ride. That’s the case for a measured gold allocation in a nutshell.
The Permanent Portfolio had the lowest returns at 7.07% per annum, but also the lowest volatility (6.96%) and smallest drawdown (-15.65%). The 25% cash allocation is a drag on returns, but the cushioning effect during downturns is real. It’s a portfolio for investors who prioritize stability above all else.
The takeaway? Gold in a portfolio has genuine value. The question isn’t whether to include it—it’s how much, based on the risk-return profile you’re aiming for.
Which Gold Investment?
If you’ve decided gold deserves a place in your portfolio, the next question is how to actually own it.
Some investors prefer physical gold. But physical gold comes with wide bid-ask spreads and is considerably less liquid than exchange-traded alternatives. We saw this play out in real time in the past few months — physical bullion stores in Singapore had long queues, and some dealers imposed restrictions on buying and selling. That’s the hidden cost of physical gold that rarely gets talked about.
Compared to physical gold, the LionGlobal Singapore Physical Gold ETF* purchases gold at institutional scale, shares storage and insurance costs across investors, and charges a transparent total expense ratio of 0.39% per annum. This helps investors avoid the inefficiencies associated with buying and holding small gold bars directly.
Thus, for most investors, a gold ETF makes more practical sense – you can buy and sell with a click of a button and at tighter bid-ask spreads.
You’re probably familiar with SPDR Gold Shares, which trades on SGX and has been around for years. LionGlobal Singapore Physical Gold ETF* (ticker: GLS in SGD, GLU in USD) is the new entrant.
So why does another gold ETF make sense?
First, custody location matters more than you think.
In an increasingly fragmented geopolitical world, where your gold sits is a legitimate consideration. Singapore is geopolitically neutral, politically stable, and not prone to natural disasters. It’s about as safe a place for a vault as you can find.
SPDR Gold Shares stores its gold across vaults in the US, UK, and Switzerland. The LionGlobal Singapore Physical Gold ETF* stores its allocated gold in Singapore—specifically at Le Freeport, a high-security facility modelled after similar institutions in Switzerland. It’s where sovereign wealth funds and ultra-high-net-worth investors store their precious assets.
On top of that, the fund’s physical gold bars (i.e. allocated gold) is fully insured against theft, loss, and damage whilst in custody and in transit. Allocated gold means each bar is uniquely identifiable, specifically assigned and accounted for.
Second, cost.
This ETF’s expense ratio comes in at 0.39% p.a., versus SPDR Gold Shares at 0.40% p.a. The difference is small, but if you can edge out a lower cost and benefit from fully insured, allocated physical gold vaulted in Singapore, why not?
Third, accessibility.
SPDR Gold Shares trades at over US$450 per unit, which makes it cumbersome to size positions precisely or to invest in smaller regular amounts. This ETF launches at US$5 per unit with a lot size of just 1 unit. That’s a meaningful difference if you want to run a monthly investment plan or need more flexibility in sizing your gold allocation.
Subscription Details
The Initial Offer Period for subscription runs from 6 March to 20 March 2026, with the ETF to be listed on SGX on 26 March 2026.
The issue price is US$5 per unit, with a minimum lot size of 1 unit. There are two counters — GLS (SGD) and GLU (USD). For GLS, your number of SGD units will be converted from the USD subscription amount based on the exchange rate determined by your respective broker. One thing to note if you’re subscribing via OCBC ATMs, Mobile and Online Banking: the rate is locked in at the start of the IOP on 6 March 2026 at 9am, so there’s no guessing on the conversion later.
Investors can subscribe to the ETF through the participating dealers — DBS Vickers Securities, iFAST Financial, Lim & Tan Securities, Maybank Securities, Moomoo, OCBC Securities, Phillip Securities and Tiger Brokers Singapore.
If you’ve been sitting on the sidelines wondering whether to get exposure to gold, the more important question is whether it fits your portfolio strategy—not whether you’ve missed the move. Based on the data, a measured allocation to gold has added value over time. How you hold it is a secondary consideration, but one worth getting right.
Disclosure: This article was written in partnership with Lion Global Investors. All views expressed are the author’s own and do not constitute financial advice.
Disclaimer – Lion Global Investors Limited
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. It is for information only, and is not a recommendation, offer or solicitation for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs.
The LionGlobal New Wealth Series II – LionGlobal Singapore Physical Gold Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange.
An investment in a precious metals fund carries risks of a different nature from other types of collective investment schemes which invest in transferable securities and a precious metals fund may not be suitable for persons who are adverse to such risks.
An investment in a precious metals fund is not intended to be a complete investment programme for any investor. As a prospective investor, you should carefully consider whether an investment in a precious metals fund is suitable for you, taking into account, your investment objectives, risk appetite and the potential price movements of precious metals. You are responsible for your own investment choices.
You should read the prospectus and Product Highlights Sheet of the Fund, which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of the appointed Participating Dealers (“PDs”), agents or distributors (as the case may be) for further details including the risk factors and consider if the Fund is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to purchase units in the Fund. Applications for units in the listed or unlisted classes of the Fund must be made in the manner set out in the prospectus.
Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the Fund is not guaranteed and the value of units in the Fund and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance, payout yields and payments of the Fund. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Any dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the Fund. There can be no assurance that any of the allocations or holdings presented will remain in the Fund at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The Fund may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. The Fund’s net asset value may have higher volatility due to its narrower investment focus (primarily in Gold (as defined in the prospectus)), when compared to funds with more diversified portfolios. LGI, its related companies, their directors and/or employees may hold units of the Fund and be engaged in purchasing or selling units of the Fund for themselves or their clients.
Please refer to the Prospectus for further details, including a discussion of certain factors to be considered in connection with an investment in the listed units of the Fund on the SGX-ST.
The listed units of the Fund are listed and traded on the Singapore Exchange (“SGX”), and may be traded at prices different from their net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem listed units in the Fund directly with the manager of the Fund, but you may, subject to specific conditions, do so on the SGX or through the PDs.
© Lion Global Investors Limited (UEN/ Registration No. 198601745D). All rights reserved. LGIis a Singapore incorporated company, and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holding companies).
Disclaimer – ICE Benchmark Administration Limited
THE LBMA GOLD PRICE, WHICH IS ADMINISTERED AND PUBLISHED BY ICE BENCHMARK ADMINISTRATION LIMITED (IBA), SERVES AS, OR AS PART OF, AN INPUT OR UNDERLYING REFERENCE FOR LIONGLOBAL SINGAPORE PHYSICAL GOLD FUND.
LBMA GOLD PRICE IS A TRADE MARK OF PRECIOUS METALS PRICES LIMITED, AND IS LICENSED TO IBA AS THE ADMINISTRATOR OF THE LBMA GOLD PRICE. ICE BENCHMARK ADMINSTRATION IS A TRADE MARK OF IBA AND/OR ITS AFFILIATES. THE LBMA GOLD PRICE AM, AND THE TRADE MARKS LBMA GOLD PRICE AND ICE BENCHMARK ADMINISTRATION, ARE USED BY LION GLOBAL INVESTORS LIMITED WITH PERMISSION UNDER LICENCE BY IBA.
IBA AND ITS AFFILIATES MAKE NO CLAIM, PREDICATION, WARRANTY OR REPRESENTATION WHATSOEVER, EXPRESS OR IMPLIED, AS TO THE RESULTS TO BE OBTAINED FROM ANY USE OF THE LBMA GOLD PRICE, OR THE APPROPRIATENESS OR SUITABILITY OF THE LBMA GOLD PRICE FOR ANY PARTICULAR PURPOSE TO WHICH IT MIGHT BE PUT, INCLUDING WITH RESPECT TO LIONGLOBAL SINGAPORE PHYSICAL GOLD FUND. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ALL IMPLIED TERMS, CONDITIONS AND WARRANTIES, INCLUDING, WITHOUT LIMITATION, AS TO QUALITY, MERCHANTABILITY, FITNESS FOR PURPOSE, TITLE OR NON-INFRINGEMENT, IN RELATION TO THE LBMA GOLD PRICE, ARE HEREBY EXCLUDED AND NONE OF IBA OR ANY OF ITS AFFILIATES WILL BE LIABLE IN CONTRACT OR TORT (INCLUDING NEGLIGENCE), FOR BREACH OF STATUTORY DUTY OR NUISANCE, FOR MISREPRESENTATION, OR UNDER ANTITRUST LAWS OR OTHERWISE, IN RESPECT OF ANY INACCURACIES, ERRORS, OMISSIONS, DELAYS, FAILURES, CESSATIONS OR CHANGES (MATERIAL OR OTHERWISE) IN THE LBMA GOLD PRICE, OR FOR ANY DAMAGE, EXPENSE OR OTHER LOSS (WHETHER DIRECT OR INDIRECT) YOU MAY SUFFER ARISING OUT OF OR IN CONNECTION WITH THE LBMA GOLD PRICE OR ANY RELIANCE YOU MAY PLACE UPON IT.
- Past performance and the predictions, projections or forecasts on the economy, securities markets, bond markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of the Fund. ↩︎
There’s a fund under the same name (LIONGLOBAL SINGAPORE PHYSICAL GOLD A ACC SGD), and annual charges is 0.4%. So what really is the difference? (other than fund takes few days to transact, ETF is almost immediate).
They are similar investments just different instruments – unit trust vs ETF. Besides the transaction time you have highlighted, ETF in this case charges 0.39% expense ratio while the unit trust version at 0.4% but typically UT doesnt charge transaction fee but ETF in this case has brokerage fees. Differences are minimal.