Online trading platform for gold, silver launched

Online trading platform for gold, silver launched

SINGAPORE - Gold may be dropping to multi-year lows but that has not stopped a firm from launching an online platform that lets investors trade the metal.

Touted as the first of its kind, the Singapore Precious Metals Exchange allows investors to buy, sell and then store gold or silver in a secure environment.

Security company Certis Cisco will act as custodian for the metals bought over the exchange, known as SGPMX and launched yesterday.

This means that when investors buy gold over its online platform, the metal will be stored at Certis Cisco's facilities in the investor's name.

SGPMX chief executive and founder Victor Foo said this will go some way towards dispelling concerns that trading in physical gold is risky.

Gold investment schemes have garnered bad press in recent times, with companies such as The Gold Guarantee, which also claimed to deal in physical gold, being investigated for possible fraud.

But Mr Foo said SGPMX is not an investment scheme that aims to pay dividends or promises a profit, but "aims to facilitate investors, either individuals or institutions, to buy, store and sell real physical gold to other investors".

He noted that if SGPMX collapsed tomorrow, investors would still own their gold.

"That gold bar or coin is his. We don't own any of that," said Mr Foo, who previously ran SGNet, an online gold bullion store that sourced and sold the metal to retail investors.

He said the exchange came about because of increasing demand from SGNet's 11,000 customers looking for a place to store the gold they bought.

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