Physical Gold Fund Designed for Retail Investors

For centuries, gold has carried a certain mystique. Ancient civilisations prized it not just for beauty, but for what it represented: permanence, power and wealth. The Egyptian pharaohs famously adorned themselves with gold, confident that its value would outlast lifetimes. They were right.

Today, most of us no longer store our wealth in gold coins or bars. Instead, our net worth resides in asset classes such as stocks, bonds, real estate and cash savings. If we do own gold, whether in the form of jewellery or gold coins, it likely represents just a small portion of our total assets.

Yet here is the paradox. Even though gold is no longer central to modern money systems, its value has never been higher. In 2025, gold prices rose by more than 60%, pushing through multiple historic milestones along the way. Prices crossed the US$3,000 per ounce mark for the first time in March 2025, and by 31 January 2026, gold was trading above the US$5,000 level.

Source: https://goldprice.org/spot-gold.html, as at 19 Feb 2026

The question here is, if gold is no longer widely used as money, why then, does it still perform so well?

How Gold Prices Tend To Move During Crises

While gold no longer functions as a currency in daily life, it plays a quieter but equally important role in our investment portfolios.

The easiest way to think about the role of gold is that it acts as insurance for our wealth. This means it could be used as a hedge against market volatility, rising inflation and currency weakness. When stock-heavy portfolios suffer sharp swings, gold often moves differently, helping to cushion overall portfolio performance during turbulent times.

As seen in the table below, gold prices tend to perform well during periods of crises when the performance of global equity declines. For example, during the Global Financial Crisis in 2007, gold prices soared by about 20% while equities took a huge beating, declining by more than 50%. More recently in 2025 during Liberation Day (2 April 2025), global equity saw a decline of 5% while gold prices when up by around 12% during the same period. 

Source: Lion Global Investors

This matters more than many people realise. Today, many investors are heavily exposed to equities through the stocks, ETFs, and unit trusts we invest in. This also means our portfolios can be significantly affected when equity markets decline. By holding some gold, we may help cushion the impact during such periods, as gold can act as a buffer against losses.

Of course, this does not mean gold prices will always rise. However, its defensive nature means it can play an important stabilising role in a portfolio, even in a world dominated by global equities and increasingly complex financial products.

Central Banks Are Buying Gold

Besides investors buying it as a hedge for their portfolios, another powerful force supporting gold prices today comes directly from central banks themselves.

Over the past two decades, gold has steadily increased its share of global reserves. At the same time, the share of the US dollar in global reserves has declined from about 71% to roughly 58%. The value of gold held by central banks has increased more than ninefold since 2000.

Source: Lion Global Investors

This shift reflects diversification of reserves for governments around the world. Gold fits the role of diversifier perfectly. Gold is no one’s liability, is finite, cannot be printed, and holds value across market cycles.

When central banks themselves are buying gold to diversify away from the USD, they create long-term demand for gold. This supports prices and reinforces gold’s role as a strategic reserve asset, in addition to being a hedge for investment portfolios.

A Long-Term Store Of Value

Last but not least is gold’s ability to serve as a long-term store of value.

Unlike fiat currencies, which lose purchasing power over time due to inflation, gold has historically preserved its real value across decades. While cash left idle gradually buys less each year, gold has remained resilient, appreciating not only against the US dollar but also against many developed-market and Asian currencies.

Source: Lion Global Investors

This enduring safe-haven status is why gold is widely viewed as a hedge against weakening fiat currencies. In periods of economic uncertainty, policy shifts or financial crises, investors globally have turned to gold to safeguard wealth. Its role as both a safe haven and currency hedge helps preserve long-term purchasing power even as markets fluctuate.

For investors focused on long-term wealth preservation, gold complements their existing assets like equities, helping stabilise portfolios and to protect our wealth over time.

How Retail Investors Can Invest In Physical Gold

Despite its benefits, buying gold, especially physical gold, can be challenging for retail investors, particularly if the portfolio isn’t in the six- or seven-figure range. Since gold typically forms only a small allocation in a diversified portfolio, smaller investors may only require a few thousand dollars’ worth of exposure. At that level, it becomes difficult to acquire gold efficiently. Storage, security, insurance and logistics add unnecessary cost and hassle, overseas purchases introduce currency risk and complexity, and some gold products have opaque pricing or wide spreads that erode returns.

This is where the LionGlobal Singapore Physical Gold Fund can help. Backed by fully insured allocated investment-grade gold bars that are securely stored in Singapore, it provides investors with convenient and cost-efficient access to physical gold.

The LionGlobal Singapore Physical Gold Fund Is Designed For Retail Investors

The LionGlobal Singapore Physical Gold Fund suits investors who want the reassurance of allocated investment-grade physical gold that’s fully insured and professionally stored in Singapore, without needing to deal with the complexities of buying, holding and safeguarding bullion themselves.

Through the fund, investors can participate in gold price movements without worrying about storage, transport or safety. As Singapore’s first physical gold fund, it reinforces the country’s position as a trusted hub for gold investment, providing confidence to both local and international investors.

Source: Lion Global Investors

To be clear, gold does not generate dividends or rental income. Its purpose is to support portfolio resilience, helping investors manage uncertainty, smoothen volatility and preserve long-term value. In an increasingly interconnected world where shocks spread quickly, that role is becoming more relevant, not less.

The LionGlobal Singapore Physical Gold Fund makes this traditionally hard-to-access asset practical, transparent and manageable for retail investors. For those seeking portfolio protection without the hassle of owning physical gold directly, it offers a straightforward and timely solution. Sometimes, the oldest assets can have a strong place in modern portfolios—and gold remains one of them.

This article was written and published by DollarsAndSense on 16 January 2026. It has been republished with permission.

The GreatLink Singapore Physical Gold Fund is Singapore’s first physical gold Investment-Linked Policy (ILP) fund, providing a simple way to invest in gold. By investing into the LionGlobal Singapore Physical Gold Fund – the first gold fund backed by physical gold, insured and vaulted in Singapore that meets the international standards of London Bullion Market Association (LBMA)*, it offers a secure way to invest in gold for long-term growth. You can diversify your investment portfolio with the GreatLink Singapore Physical Gold Fund, which is available through our suite of Investment-Linked Policies (ILPs): GREAT Invest Advantage, GREAT Wealth Advantage 4, GREAT Life Advantage 4, and Prestige Legacy Advantage.

Footnotes and disclaimers

* LBMA (London Bullion Markets Association) is the global trade association that sets international standards for gold bullion.

GreatLink Singapore Physical Gold Fund is an investment-linked policy (ILP) fund offered by The Great Eastern Life Assurance Company Limited ("Great Eastern") and is only available under Great Eastern investment-linked policies. The information presented is for informational use only. Investment in GreatLink Singapore Physical Gold Fund involves a high degree of risk and is only appropriate for a person able and willing to take such a risk.

This ILP Sub-Fund invests all or substantially into the LionGlobal Singapore Physical Gold Fund A SGD (Acc) (“Underlying Fund”) managed by Lion Global Investors Limited (“Manager”). The ILP Sub-Fund aims to track, as closely as possible, before fees and expenses (including but not limited to hedging costs where applicable), the performance of the LBMA Gold Price AM.

All figures used are for illustrative purposes only and are subject to rounding.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

The above is for general information only. It is not a contract of insurance. The precise terms and conditions of these insurance plans are specified in the policy contract.

As buying a life insurance policy is a long-term commitment, an early termination of the policy usually involves high costs and the surrender value, if any, that is payable to you may be zero or less than the total premiums paid.

Investments in these plans are subject to investment risks including the possible loss of the principal amount invested. Please refer to Fund Details and Product Highlights Sheet for the specific risks of the fund.

A Product Summary and a Product Highlights Sheet in relation to the fund may be obtained through The Great Eastern Life Assurance Company Limited or its financial representatives. Potential investors should read the Product Summary and the Product Highlights Sheet before deciding whether to invest in the fund. Returns on the units of the fund are not guaranteed. The value of the units in the fund and the income accruing to the units, if any, may fall or rise.

These policies are protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg).

Information correct as at 10 March 2026.