Singapore seeks bigger role as regional gold hub amid rising bullion demand

Singapore is seeking to strengthen its position as a regional centre for gold trading and storage as demand for bullion rises across Asia amid growing geopolitical uncertainty.

Industry players say interest in storing gold in Singapore is increasing among investors and institutions from countries including India, Indonesia and Vietnam, attracted by the city-state's reputation for stability, security and strong governance.

Singapore is also looking to attract central banks searching for alternative locations to store and trade gold as governments reassess reserve management strategies in an increasingly uncertain global environment.

Officials and industry experts say Singapore's legal framework and political neutrality could make it an attractive alternative to traditional gold storage centres in Europe and the United States.

Shaokai Fan, global head of central banks and head of Asia-Pacific excluding China at the World Gold Council, said many central banks were reviewing where to place their gold reserves in light of rising geopolitical tensions.

He said Singapore's rule of law and relative neutrality in international affairs made it a strong candidate for storing national gold reserves.

According to Fan, the arrival of more central bank reserves could also boost gold trading activity in Singapore and increase liquidity in the local bullion market.

Private vault operators in Singapore currently store billions of dollars' worth of precious metals on behalf of clients from around the world.

Gregor Gregersen, founder of The Safe House Singapore, said investors were increasingly turning to gold as a safe-haven asset as global uncertainty grows.

He said many clients viewed gold not as a short-term investment but as a means of long-term wealth preservation and financial security.

The Safe House Singapore currently stores about S$4 billion worth of precious metals, with a large share of its customers coming from Europe, Australia and the United States.

The company has also invested in technology aimed at improving the security and traceability of stored bullion. Gregersen said proof-of-reserve systems could help owners verify their holdings and increase transparency in the sector.

Analysts say Singapore's ambitions to become a leading gold hub will depend on continued growth in regional demand, participation by central banks and the development of regulatory frameworks that support secure and efficient bullion trading.