Singapore emerges as global gold storage haven amid uncertainties
The ultra-wealthy are increasingly moving their gold offshore as economic and geopolitical uncertainty roils markets — and Singapore is emerging as a favoured destination, reports CNBC. This shift is due to global economic and geopolitical uncertainty.
In one of the six-storey buildings in Singapore, there are "gold and silver bars amounting to about $1.5 (£1.1) billion," as reported by CNBC. The facility is under stringent security, housing private vaults and a storage chamber "lined with thousands of safe deposit boxes reaching three stories high."
American media highlight that in the first quarter of the year, the precious metals repository experienced an 88% increase in orders for storing gold and silver compared to the same period in 2023.
Singapore is seen as the "Geneva of the East"; it is reputed as a safe jurisdiction with relative political and economic stability, notes CNBC.
A lot of very high net worth clients are looking at tariffs, looking at the world changing, looking at the potential of geopolitical instabilities, explained Gregor Gregersen, founder of the Singapore "Vault." As much as 90% of orders for storing gold and silver come from abroad.
Investment in gold
Recently, gold prices have been reaching unprecedented levels. In the first half of April, the price surpassed $3,200 (£2,400) per ounce of the metal. The price is driven by the weakening dollar and growing concerns about the intensifying trade war. In May, a correction occurred - by mid-month, gold saw significant value declines. The price of gold dropped by over 4% within a week, primarily due to the strengthening of the dollar and a temporary trade agreement between the USA and China, which lessened investors' interest in safe assets.
Jeremy Savory, founder of Millionaire Migrant, a consultancy based in Dubai that provides services related to citizenship for wealthy individuals, noted that more people are choosing to store their assets outside of banks. This is particularly true among citizens of countries such as Lebanon, Egypt, or Algeria, where the banking system is not trusted.
- Singapore is a transit hub. Anywhere that is a transit hub, usually makes sense that there’s a gold vault - observed Savory. Switzerland is at a disadvantage as it is not a transit hub. This is also an issue for Dubai. - Dubai is probably a little bit more documentation-heavy. Some people don't like documentation - concluded Savory.
