Singapore is the next gold market leader, World Gold Council projects

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Source: X90052

Singapore is projected to become the new leading gold hub, according to the World Gold Council.

Head of Asia-Pacific and global head of central banks Shaokai Fan said gold consumption in major emerging economies could be a contributing factor.

A majority of these markets are concentrated in Asia and Singapore’s closeness to these central banks also makes it a beneficiary.

“The center of gravity of the gold market has shifted east, with Singapore, fortuitously placed as the potential fulcrum of this new balance,” Fan was quoted by CNBC as saying at the Asia Pacific Precious Metals Conference held in Singapore.

Singapore is close to countries including China, Australia, Indonesia, the Philippines, Papua New Guinea and Laos which make up about 25% of the world’s gold mining supply centres.

While there’s a growing need for an official gold reserve center by central bankers globally, Singapore is projected to become an alternative to London and New York as a hub for central bank gold vaulting.

“Singapore is poised to lead the gold market in the future,” Fan said, elaborating that other factors contributing to Singapore’s important role in the future of the bullion market include the country’s commitment to political stability and removal of sales tax on investment gold.

Political stability and the removal of sales tax on investment gold are significant factors strengthening Singapore's position in the bullion market.

Since October 2012, the Singaporean government has exempted investment-grade precious metals from the Goods and Services Tax (GST), enhancing its status as a leading gold trading hub.

China stands out as the world's largest gold consumer, with its central bank being the top buyer in 2023, as it works to increase its gold reserves. Japan has also shown strong gold demand, posting the highest first-quarter gold jewelry demand since 2019, according to a WGC report. Similarly, South Korea recorded its largest quarterly increase in gold purchases in over two years.

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