Singapore pushes to become regional gold hub as demand for bullion rises

“It can also serve as a sort of foundation of liquidity,” he added. “If these foreign central banks want to trade their gold more actively when it’s moved to Singapore, then that gold can be circulated in the market.”

Singapore’s private vault operators collectively store billions of dollars’ worth of precious metals for clients around the world.  

“People are looking for a safe haven asset because the world is becoming less and less predictable,” said Mr Gregor Gregersen, founder of bullion vault operator The Safe House Singapore. 

“Our clients don’t view it as an investment. They view it as long-term wealth protection and that’s essentially what we are – a backup plan, safety – in a world which is becoming less certain.”

The Safe House stores about S$4 billion (US$3 billion) worth of gross metals, with most of its customers coming from Europe, Australia and the US. 

It has also invested in technology to improve the security of stored assets.

“If you move things in and out, you just have to make sure that the bullion ends up arriving where it needs to go,” said Mr Gregersen. 

Long-term storage could be supported by proof-of-reserve systems that allow owners to verify the presence of their gold and improve transparency, he added.