Wealthy shift gold reserves to Singapore amid global turmoil
The ultra-wealthy are increasingly moving their gold offshore as economic and geopolitical uncertainty roils markets — and Singapore is emerging as a favored destination, reports CNBC. This trend results from economic and geopolitical uncertainties worldwide.
In one of Singapore's six-story buildings, there are "gold and silver bars amounting to about $1.5 billion," as reported by CNBC. The facility is under strict security, housing private vaults and a storage chamber "lined with thousands of safe deposit boxes reaching three stories high."
American media emphasize that in the first quarter of the year, the precious metals repository recorded an 88% increase in orders for storing gold and silver compared to the same period in the previous year.
Singapore is perceived as the "Geneva of the East"; it has a reputation as a safe jurisdiction with relative political and economic stability, notes CNBC.
A lot of very high net worth clients are looking at tariffs, looking at the world changing, looking at the potential of geopolitical instabilities, explained Gregor Gregersen, founder of the Singapore "Vault." As much as 90% of orders for storing gold and silver come from abroad.
Investment in gold
Gold prices have been hitting records in recent months. In the first half of April, the price exceeded $3,200 per ounce of the metal. The price is driven by the weakening dollar and growing concerns related to the intensifying trade war. In May, a correction occurred; in the middle of the month, gold experienced significant drops in value. The price of gold fell by more than 4% within a week, mainly due to the strengthening dollar and a temporary trade agreement between the USA and China, which reduced investors' interest in safe assets.
Jeremy Savory, founder of Millionaire Migrant, a consulting firm based in Dubai that offers services related to citizenship for wealthy individuals, assessed that more people want to store their assets outside banks. This trend is especially notable among citizens of countries like Lebanon, Egypt, or Algeria, where the banking system is not trusted.
- Singapore is a transit hub. Anywhere that is a transit hub, usually makes sense that there’s a gold vault - assessed Savory. Switzerland is losing out on this, as it is not a transit hub. This is also a problem for Dubai. - Dubai is probably a little bit more documentation-heavy. Some people don't like documentation, - summarized Savory.
