Gold Rush: Singapore Poised to Become a Top Gold Hub in Asia-Pacific Region

Singapore is well-positioned to become a top gold hub as trading trends shift towards the east, according to the World Gold Council. The rising gold consumption in major emerging economies, particularly in Asia, is driving this shift. Shaokai Fan, head of Asia-Pacific and global head of central banks, pointed out that Singapore’s proximity to these central banks, which are increasingly acquiring gold, is also contributing to its emerging role.

At the Asia Pacific Precious Metals Conference in Singapore, Fan highlighted the shift of the gold market’s center of gravity towards the east, with Singapore potentially positioned as a central point in this new balance. China stands out as the world’s largest gold consumer, with its central bank being the biggest purchaser of bullion in an effort to bolster its gold reserves.

Singapore’s strategic location near approximately 25% of the world’s gold mining supply sources, including countries like China, Australia, Indonesia, and others, adds to its appeal as a potential gold hub. Central bankers worldwide are considering the necessity of establishing an official gold reserve center, particularly given the current uncertain geopolitical environment. Fan suggested that Singapore could emerge as a strong contender for this role, serving as a viable alternative to traditional hubs like London and New York.

Several factors have positioned Singapore as a leading destination for gold trading. The country’s political stability and removal of sales tax on investment gold have made it an attractive option for investors and central banks seeking a reliable hub for gold transactions. Additionally, Singapore has good delivery refineries that make it easy for traders to move their goods across borders quickly and efficiently. With these advantages in place