Singapore Strengthens Its Position in the Gold Trade
Investors from the United States, Europe and the Middle East are moving their gold to Singapore to diversify and protect their assets.
Wars, rising government debt and political uncertainty are prompting wealthy investors to store their physical gold in Singapore. Investors from the United States, Europe and the Middle East are moving their gold to the country to diversify and protect their assets.
According to Bloomberg, precious metals company J. Rotbart & Co. estimates that privately held gold reserves in Singapore have increased approximately 16-fold since 2014, exceeding 800 metric tons last year. A significant portion of this growth has come from gold imported from Europe. The company expects this trend to continue.
The high-security, six-storey vault operated by Gregor Gregersen, founder of Silver Bullion, has the capacity to store approximately 10% of the world's annual gold supply. According to the company, its clients' gold holdings have tripled since early 2020, reaching 8.6 tons in September. Approximately 90% of this gold belongs to foreign clients.
J. Rotbart & Co. reported that online inquiries from Western clients tripled over the past year. Meanwhile, Indigo Precious Metals said demand for gold among wealthy European and American investors increased by approximately 25%.
The Singaporean government aims to capitalise on this growing interest by turning the country into one of Asia's leading gold trading hubs. To achieve this, Singapore is developing new trading infrastructure and gold storage services, competing with Hong Kong in the sector.
Singapore's gold imports reached 171 tons in August, representing a 44% increase compared with the same period a year earlier. Nevertheless, the flow of gold into Singapore remains limited compared with the overall size of the global market.