Gold Vault of the World: Fear of Financial Crash and the Role of Singapore
In recent months, Singapore has emerged as a preferred destination for storing gold bars, particularly among the super-rich. This development is driven by several factors:
Reasons for Storing in Singapore
Mistrust of Banks: Following the banking crisis surrounding Silicon Valley Bank in 2023, many wealthy investors have started storing physical gold outside the traditional banking sector. This reduces counterparty risk, which is a significant factor in times of increasing instability.
Geopolitical Uncertainties: Fears of geopolitical tensions, especially related to international conflicts and political changes, are driving the demand for gold as a safe investment form.
Security and Stability of Singapore: Singapore offers a stable political and economic environment, making it an attractive place for storing wealth. The city-state has strict regulations and provides high security for physical assets such as gold.
The Role of “The Reserve”
A discreet six-story building near Singapore’s airport, known as “The Reserve”, has become a hotspot for the storage of gold and silver bars. Here, bars worth around 1.5 billion US dollars are stacked, and the storage volume has increased by 88 percent since the beginning of the year.
Outlook
The trend of storing gold in Singapore is expected to continue as uncertainties in the global financial system and geopolitical tensions persist. Singapore will continue to be seen as a safe haven for wealth, particularly for physical assets like gold bars.