“The idea of putting physical metal in a safe jurisdiction like Singapore with parties in which they can trust becomes a great trend these days,” explains Gregor Gregersen, founder of the reserve.
Alessia Pierdonenico | Bloomberg | Getty images
Ultra -rich is increasingly moving their offshore gold while the economic and geopolitical uncertainty of the Kings – and Singapore markets emerges as a privileged destination.
Not far from the airport in the city state is an installation of six floors covered with onyx and fortified by tight safety. The gold and silver bars are nestled behind its steel and silver doors for around 1.5 billion dollars.
Known as “reserve”, the storage installation includes dozens of private chests and an imposing storage chamber bordered by thousands of safety boxes reaching three floors.
From the beginning of the year to April, the preferential of precious metals received an increase of 88% of the storage orders for gold and money in the safe of the same period in 2024, said its founder, Gregor Gregersen. The reserve, which also sells gold and silver bars, has seen sales for precious metal bars soar 200% Year a year during this period, the data provided by the reserve showed.
Singapore is considered “Eastern Geneva”; It has a reputation for a safe jurisdiction with relative political and economic stability.
According to industry observers.
“Many very high customers in net value look at prices, looking at the world change, looking at the potential of geopolitical instabilities,” Gregersen told CNBC.
“The idea of putting physical metal in a safe jurisdiction like Singapore with parties in which they can trust become a big trend these days,” he said, adding that 90% of the new orders come from the outside of Singapore.
Not far from Singapore airport is a six -story installation called the reserve. The gold and silver bars are nestled behind its steel and silver doors for around 1.5 billion dollars.
The reserve
The rise of gold has been dazzling in recent months, the prices of the ingots have won consecutive record heights. This was partially fed by its appeal of refuge in the face of volatility caused by American-Chinese trade tensions and a sale of mass American assets in April.
Although gold prices have recently cooled after appetites for investors’ risks improved as a result of a thaw of trade tensions between the two economic superpowers, some market observers still think that they could climb up to $ 5,000 per ounce next year. The cash prices in cash are currently negotiated at $ 3,346.32 per ounce, near the historic levels.
Physical bars against paper
The rich also opt more and more for physical gold bars instead of paper because they do not want as much risk of counterpart and geopolitics, said Gregersen. Although storage and possession of physical gold are not completely exempt from exposure to prices, it limits exposure to certain risks that gold in paper.
For example, the risks of counterpart is lower if you have the asset directly. The Silicon Valley Bank crisis which took place in 2023 fueled the preference of investors for physical possession or the secure allowance of specific gold bars, instead of relying on paper complaints or only having a participation in a group reserve – which could be put at risk if a banking is in collaps, said Nicky Shiels, manager of research and metals at MKS Pamp, A precious metal company and precious trade.
Gold prize in the past year
The chief strategist of the Gold Council world market, John Reade, has also noted that this is particularly the case for those who are concerned about the health of the global financial system.
“Some holders of physical precious metals are wary of storing gold in the banking system, even in an allocated form, they therefore prefer to hold gold with entities that are not banks,” said Reade.
The lack of confidence in certain national banks is also a key engine, said Jeremy Savory, founder of Millionaire Migrant, a council based in Dubai which provides services related to citizenship to individuals.
“If you are in a country where you do not trust the banking system, for example, Lebanon or Egypt or Algeria … They do not want to put it in the bank,” said Savory, whose customers include individuals with high noue in the world who try to move physical gold to jumps to Switzerland, Singapore and Dubai.
That said, vaulted gold can be less attractive for short -term investors, given that the transaction costs for the purchase and movement of physical gold are higher than that of paper gold, said Reade of the World Gold Council.
The reserve storage installation includes dozens of private chests capable of storing 25 to 60 tonnes of gold, which are stored in boxes and sealed.
The reserve
But why store them in Singapore specifically?
“Singapore is considered” Eastern Geneva “; it has the reputation of a safe jurisdiction with relative political and economic stability,” said Shiels.
The role of the Southeast Asian Nation as a key transit center also makes an attractive and practical place for the rich to park their gold.
“Singapore is a transit center. Wherever it is a transit center, it is generally logical that there is a gold safe,” said Savory. “You can bank, you can store your gold there, but you can also get it [easily] Because it is a transit center. And that’s where Switzerland loses, “he added.
