Singapore: Storing Bullion in Asia
In recent years, Singapore has emerged as a key player in the global bullion market, with growing interest in storing precious metals in the region. The increasing demand for owning precious metals in Asia, particularly in countries like China and India, has led to Singapore’s development as a prominent commodity trading hub. This growth is further supported by the country’s government incentives and its reputation as a secure location for safeguarding high-value assets.
Developments in Singapore
Singapore’s infrastructure for bullion trading has seen significant advancements, including a substantial increase in vault capacity over the past few years. Notably, several major banks, such as JP Morgan, Deutsche Bank, and UBS, have established vaults in Singapore, while the ANZ Group is preparing to open a vault as well. Moreover, the creation of the Singapore Precious Metals Exchange has enabled retail customers to engage in buying and selling Singapore-stored bullion online. Additionally, a new bullion production facility is set to commence operations, and there are plans to introduce a Singapore gold fix to benchmark bullion prices locally, challenging the dominance of traditional trading hubs like London, New York, and Zurich.
Business Opportunities in Singapore
The growth of bullion trading in Singapore is expected to give rise to various business opportunities. Vault-operating banks are poised to provide custodian services to clients in Singapore and Southeast Asia, holding gold on behalf of their clients without it appearing on the banks’ balance sheets. The development of a market for bullion delivery in Singapore will also create opportunities for non-vault-operating banks to offer custodian services through sub-custody arrangements with the vault-operating banks. Additionally, there will be increased demand for smaller-sized bars and coins from non-institutional investors, presenting opportunities for refiners. Bullion-owning banks and traders will benefit from trading opportunities stemming from the enhanced flexibility offered by a Singapore delivery base. Furthermore, logistics firms and insurers are likely to experience heightened demand for their services.
In conclusion, the expanding appeal of storing bullion in Asia, particularly in Singapore, reflects the region’s growing significance in the global precious metals market. With rapid developments in infrastructure and promising business opportunities, Singapore is set to strengthen its position as a competitive player in bullion trading, offering a secure and lucrative environment for investors and industry participants alike.
Reference: Author: BullionBulldog.com 04-12-2023 All rights Reserved – This Article May Not Be Reproduced Without Prior Written Permission from The Author.