Storage Demand Up 88%, Sales Up 200%
90% of New Orders from Overseas
"Preference for Safe Jurisdictions Amid Geopolitical Risk Concerns"
Singapore, the "Geneva of the East," Emerges as a Gold Hub
As global economic and geopolitical uncertainties intensify, there is a clear trend of ultra-high-net-worth individuals moving their gold to Singapore. On May 26 (local time), U.S. economic media outlet CNBC reported that "there is a surge in demand among the global wealthy to store physical gold bars in Singapore."
On the morning of the 5th, employees at the Incheon Airport Customs Export-Import Clearance Building in Jung-gu, Incheon, are unveiling smuggled gold items. The Korea Customs Service announced that due to the recent increase in gold smuggling aimed at profiting from domestic and international price differences, they will intensify crackdowns to block gold smuggling. March 5, 2025. Photo by Kang Jinhyung
Gregor Gregersen, founder of the six-story precious metals vault "The Reserve" near Changi Airport in Singapore, stated in an interview with CNBC that "from the beginning of this year through April, orders to store gold and silver increased by 88% compared to the same period last year." During the same period, the company's sales of gold and silver reportedly soared by 200%.
Gregersen explained, "Customers prefer safe jurisdictions like Singapore amid concerns about tariffs, global affairs, and geopolitical instability," adding that "there is a clear increase in demand to securely store physical precious metals." CNBC reported that, in fact, 90% of new orders at this vault are coming from outside Singapore.
Although physical assets such as gold bars are not completely free from price volatility, recent analyses suggest that the ultra-wealthy are once again focusing on them as a means of risk diversification. Physical gold is classified as a safe-haven asset and has long been favored as a store of value during times of crisis.
Singapore is regarded as a country with a relatively stable political and economic structure and is considered well-suited for asset protection, earning it the nickname "Geneva of the East."
In line with this trend, Singapore is also expanding its gold trading infrastructure. Abaxx Exchange, established last year, is challenging the London- and New York-centered international gold markets and is set to begin trading physical gold in June. There are expectations that this could serve as a catalyst for Singapore to emerge as a new hub for gold trading.
Meanwhile, gold prices have continued to rise sharply recently amid growing global uncertainty. Multiple factors, including U.S.-China tensions and instability in U.S. asset markets, have highlighted gold's appeal as a safe-haven asset. As of April 22, gold prices had risen by approximately 33% since the beginning of this year.
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