Gold Trading Shifts East: Singapore Set to Lead as a Gold Hub

Gold trading is gradually shifting eastward, with Singapore emerging as a potential leading hub in the gold market, according to the World Gold Council. The rise in gold consumption in major emerging economies, particularly in Asia, is a key driver behind this shift. Shaokai Fan, head of Asia-Pacific and global head of central banks, highlighted that many Asian markets are experiencing a surge in gold demand.

Singapore’s strategic location near central banks that are actively acquiring gold reserves plays a vital role in positioning the city-state as a significant player in the gold market. The country’s proximity to key gold mining supply centers in Asia, including China, Australia, and Indonesia, further enhances its standing in the industry. With approximately 25% of the world’s gold supply centers situated close to Singapore, the city-state is well-placed to serve as a hub for gold trading and vaulting services.

China, as the world’s largest gold consumer, continues to drive global gold demand, with its central bank emerging as the largest buyer of bullion. Japan and South Korea have also witnessed notable increases in gold consumption, indicating a growing trend of gold ownership in the region. The resilience of gold demand in Japan, as evidenced by strong first-quarter jewelry sales, and the sharp rise in gold purchases in South Korea highlight the significance of Asia in the gold market.

Central bankers around the world are increasingly looking at Singapore as a reliable alternative to traditional gold trading hubs like London and New York. The city-state’s commitment to political stability, coupled with the removal of sales tax on investment gold, has bolstered its appeal as a central bank gold vaulting center. The establishment of good delivery refineries in Singapore further solidifies its position as a key player in the future of the gold market.

Singapore’s strategic location, growing presence of central banks, and supportive government policies make it well-positioned to lead the gold market in the coming years. With the shift in gold trading towards Asia, Singapore has the opportunity to establish itself as a prominent gold hub, catering to the evolving needs of the global gold industry.