CPF Investment Scheme for gold bullion
In my research on gold bullion investments in Singapore, I found out that Singaporeans can actually use their CPF Ordinary Account to invest in gold bullion. Interestingly, UOB is the only agent authorised by CPF to sell physical gold using CPF savings and if you wish to invest in gold, you need to set up an investment account with UOB.
There is a limit to the amount you can use for gold investment and it is capped at 10% of your investible saving for gold bullion (if you have more than $20,000). Now, a few questions had been bugging me.
What if I sold the gold bullion bought from UOB to another dealer? How is CPF going to make me return the proceeds back to my CPFIS or OA account? If the policy does not address this aspect, does this mean that this is a potential loophole for investors to liquidate their CPF monies before turning 55 years old (without giving up their citizenship or ending their lives)? Out of curiosity, I wrote in to the CPF Board to find out more details. If you are interested to know more, read on.
Central Provident Fund Board
When I saw the initial response from CPF, I was pretty upset because of the heck-care reply from the CPF customer service unit. As public servants, they are supposed to serve the citizens and provide constructive solutions in their responses to public queries. Therefore I find their initial reply really absurd. To me, it is unacceptable that CPF staff cannot even answer simple queries pertaining to CPF policies satisfactorily. So I wrote in again and demanded a better reply.
Michelle,
What do you mean by “not unable to advise”?
This is a matter of policy pertaining to CPFIS. How can CPF officers not able to advise?
I can accept it if you explained that the policy is grey or does not address my query. But your reply is totally unacceptable to me.
If you don’t belong to the policy-making department, then you should forward my query to your colleagues for further advice. Furthermore, as part of Singapore civil service “no wrong door” policy, you should have directed me to the UOB officer contact.
What happened to our civil service ethos?
I am expecting a better response from CPF.
Regards,
Gerald
Within three hours, the manager of the CPF customer service unit called me and clarified the issue. Below is her written reply:
Central Provident Fund Board
While CPF have closed the case yesterday, at the back of my mind, I am wondering if the CPF policy of refunding physical gold proceeds is enforceable. Just wonder if any of my readers had tried this idea before. I would be very interested to find out more.
Magically yours,
SG Wealth Builder
Have a read at the discussion here:
http://www.goldclubasia.com/forum/showthread.php?t=6214
It seems the physical gold u purchase at UOB with your CPF OA with be kept in the bank. You will only be issued a proof / receipt of purchase. There’s no way you can sell your gold to other places then.
thanks for sharing. Nice article