Rich men's gold migrates to Singapore: 800 tons in vaults

Owning gold alone is no longer sufficient to protect the wealth of major investors, as choosing where to store bullion has become an essential part of hedging strategies. Amid rising geopolitical tensions, fears of wars and financial crises, and worsening government debt in major economies, the world’s wealthy have shifted their holdings toward more stable centers, with Singapore leading the way.

Data from the Singapore Bullion Market Association show that private gold holdings have surged nearly 16-fold since 2014, surpassing 800 tons, driven by growing foreign inflows, particularly from European investors who account for more than half of the clients storing their gold in the Asian nation’s vaults.

This surge in demand has been accompanied by a notable expansion of storage facilities. Two private facilities alone have a combined storage capacity of at least 2,200 tons. As demand from major investors and financial institutions rises, banks and specialized firms are seeking additional space. DBS Bank, for instance, expanded its storage capacity this year to keep pace with demand.

Singapore benefits from an exemption of investment-grade gold from goods and services tax, along with its political and economic stability, its relatively distant geographic location from conflict zones, and plans to establish a gold clearing system to enhance liquidity and trading efficiency.

This shift reflects a broadening of the safe-haven concept to include not just ownership but also the location of asset storage. Competition is intensifying between Singapore and traditional wealth-storage centers, notably Switzerland. The importance of secure storage has become firmly entrenched among investors seeking to protect their wealth from global economic volatility and rising risks, as the choice of where to hold gold has become as critical as the size of the holdings themselves.