Gold has had a remarkable few years, with prices climbing to an all-time high of over US$5,500 per ounce in early 2026 (it’s currently trading at about US$4,100). The rally has been driven by the familiar mix of geopolitical uncertainty, concerns over US dollar weakness and a global flight towards safe-haven assets.
As demand for gold has grown, so too have the number of ways Singapore investors can gain exposure to it. For example, earlier in the year, the LionGlobal Singapore Physical Gold ETF was launched on the SGX, allowing retail investors to buy gold easily through a local ETF.
On 11 June 2026, DBS announced that it will offer DBS Physical Gold Tokens to retail customers through its digibank app in the second half of 2026. Each token will be backed by one gram of physical gold stored in a dedicated DBS vault in Singapore.
While the concept is interesting, it also raises a simple question: how does it compare with existing ways of investing in gold, such as gold ETFs, physical bullion and bank gold savings accounts?
Existing Investment Options In Singapore
Before looking at the DBS product, it helps to understand the existing options.
The most common route for retail investors is a gold ETF. While the SPDR Gold Shares ETF (SGX: GSD) remains one of the best-known options in Singapore, the launch of the LionGlobal Physical Gold ETF earlier this year, with an expense ratio that is 1 basis point lower than that of SPDR Gold Shares, is another sign that gold investing is becoming more accessible.
Both ETFs are backed by physical gold bars, although LionGlobal differentiates itself by storing its gold in Singapore. Investors looking for an even lower-cost option and who have access to European markets can also consider the iShares Physical Gold ETC (IGLN), which trades in US dollars and has an annual expense ratio of 0.12%.
Gold ETFs provide exposure to gold prices without the hassle of storing the metal yourself. While you cannot (easily) redeem ETF units for physical gold, and annual management fees will slightly reduce returns over time, ETFs are liquid, regulated and straightforward to buy and sell through a brokerage account.
The alternative is to buy physical gold directly.
In Singapore, investors can purchase gold bars and coins from UOB or bullion dealers such as Silver Bullion. Investment-grade precious metals are GST-exempt, making physical gold more accessible than in many other countries. The trade-off is that you are responsible for storage and security, while buying and selling physical bullion typically involves wider spreads than trading an ETF.
Banks also offer gold savings accounts, sometimes called precious metals accounts, where customers hold a notional amount of gold without taking physical delivery. For example, UOB has its Gold and Silver Savings Account, while OCBC has a Precious Metals Account
What Exactly Is DBS Offering?
DBS Physical Gold Tokens occupy a category of their own, at least for Singapore retail investors.
Each token represents one gram of physical gold held in a dedicated DBS vault in Singapore. At the time of the announcement, one gram of gold was worth around S$200, providing a relatively low entry point for retail investors.
The product is built on blockchain infrastructure, with DBS managing the entire technology stack internally. According to the bank, it is using its own infrastructure for tokenisation, custody and distribution rather than relying on a third-party crypto custodian or a public blockchain.
In other words, DBS is taking a traditional physical gold product, adding a blockchain-based ownership layer, and distributing it through its regulated banking platform.
Customers will be able to buy, hold, trade and redeem their tokens through the digibank app. Those who accumulate enough tokens will also have the option of redeeming them for physical gold.
One notable feature is that trading will be available 24 hours a day, unlike exchange-listed ETFs that can only be traded during market hours. Settlement is also expected to be near-instant through what DBS describes as atomic settlement, instead of the T+2 settlement cycle typically associated with exchange-traded products.
DBS is also exploring listing the tokens on its Digital Exchange (DDEx) for accredited and institutional investors, which would further broaden access.
Ownership & Backing
A gold ETF gives investors exposure to gold prices but not ownership of specific gold bars. Although the ETF is backed by physical gold, investors generally cannot redeem their ETF units for bullion.
With DBS Physical Gold Tokens, each token is backed by one gram of physical gold stored by DBS. Structurally, this sits somewhere between a traditional gold ETF and owning physical bullion.
Convenience & Accessibility
Tokenised gold has a clear advantage over buying physical bars or coins. Investors can buy and sell through a banking app they already use without worrying about storage or insurance.
Gold ETFs are also highly convenient, although they require a brokerage account and can only be traded during exchange operating hours.
Physical gold remains the least convenient option for most retail investors as you need to take physical ownership of the gold.
Costs
DBS has yet to disclose the transaction spreads, custody charges or any fees associated with redeeming physical gold. These details will determine how competitive the product ultimately is.
Gold ETFs, by comparison, have annual expense ratios typically ranging from 0.10% to 0.40%, in addition to brokerage commissions.
Regulatory & Counterparty Risk
Gold ETFs are regulated investment products with established custody and auditing arrangements. Physical gold held personally carries virtually no counterparty risk because you own the metal directly.
DBS Physical Gold Tokens introduce an additional layer of trust. Investors rely on DBS to safeguard the physical gold, maintain the blockchain infrastructure and continue operating the platform. Given that DBS is Singapore’s largest bank and operates under MAS oversight, this counterparty risk is relatively low.
DBS Physical Gold Tokens are not a new asset class. The underlying asset remains physical gold stored in a vault, with its value rising and falling alongside global gold prices.
What tokenisation adds is greater convenience, fractional ownership at the one-gram level and the ability to trade around the clock. For investors who have avoided buying gold because the process felt cumbersome, the product could be a game-changer in lowering the barrier to entry.
Read Also: Gold & The USD: Understanding The Relationship Between These Two Popular Asset Classes
Photo Credit: iStock/Stanley Fong
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