“The idea of putting physical metal in a safe jurisdiction as Singapore with parties in which they can trust is becoming a great trend today,” says Gregor Gregersen, founder of the reserve.
Alessia Pierdomenico | Bloomberg | Getty images
The ultra rich are increasingly moving their gold on the high seas as economic and geopolitical uncertainty is a market that is emerging as a favorite destination.
Not far from the city-state airport is a six-story installation covered with ónix and fortified by tense security. Hidden behind their steel doors there are gold and silver bars that amount to around $ 1.5 billion.
Known as “The Reserve”, the storage installation has dozens of private vaults and an imposing storage chamber full of thousands of safety boxes that reach three floors high.
From the beginning of the year to April, the precise repository of metals has received an 88% increase in orders to store gold and silver in the vault of the same period in 2024, said its founder, Gregor Gregersen. The reserve, which also sells gold and silver bars, saw sales for precious metal bars shot 200% Year after year at that time, he showed the provident data of the reserve.
Singapore is seen as the ‘gin of the east’; It has a reputation as a safe jurisdiction with relative political and economic stability.
A growing feeling of restlessness is promoting the increase, according to industry observers.
“Many customers of a very high net estate are analyzing the rates, observing the change of the world, observing the potential of geopolitical instabilities,” Greatrsen told CNBC.
“The idea of putting physical metal in a safe jurisdiction as Singapore with parties where they can trust is becoming a great trend today,” he said, added that 90% of the new orders come from outside Singapore.
Not far from the Singapore airport is a six -story installation called Reserva. Hidden behind their steel doors there are gold and silver bars that amount to around $ 1.5 billion.
The reserve
The emergence of gold has been meteoric in recent months, with bull prices that measured consecutive records. That was partially fed by its safe port appeal against volatility brought by the commercial tensions of US-China and a massive sale of assets in the United States in April.
Although gold prices cooling recently after investor risk appetite improved after a thaw in commercial tensions between the two economic superpowers, some market observers still believe they could rise to $ 5000 per ounce next year. Gold Spot prices are currently quoted at $ 3,346.32 per ounce, close to historical levels.
Physical bars versus paper
The rich also opt for more and more for physical gold bars instead of paper because they do not want so much counterpart and geopolitical risks, Gregersen said. While the malfunction and possession of physical gold are not completely free of exposure to the price, it limits exposure to certain risks that gold leads carries.
For example, counterpart risks are lower if one has the asset directly. The Crisis of the Bank of Silicon Valley that was developed in 2023 fed the preference of investors for physically possessing or assigning specific gold bars, instead of relying on paper claims or possessing only a participation in a grouped reserve, which could be put at risk if a collapse bank, said Nicky Shiels, head of research and MKS metal strategy, a MKS metal strategy, a signing of refiners and medals.
Gold prices in the last year
The main strategist of the Gold Council World Cup market, John Read, also noted that this is especially the case of those who are concerned about the health of the global financial system.
“Some hollows of physical physical metals vary from the malfunction of gold within the banking system, only in assigned, so they prefer to maintain with entities that are not banks,” Reade said.
The lack of confidence in some national banks is also a key driver, said Jeremy Savoy, founder of Millionaire Mivrant, a Dubai -based consultancy that provides services related to citizens to people of high value of the network.
“If you are in a country where you do not trust the banking system, for example, Lebanon or Egypt or Algeria … do not want to put it in the bank,” Savoy said, whose customers include high -ninthy people in the Aretyt, Goveld Fee Rouldsy, which should make Fold Fold Towd Factsical, Singapore and Dubai.
That said, the vaulted gold can be less attractive to investors in the short term, giving transaction costs to buy and move physical gold are higher than Paper Gold’s, said World Gold Council Reade.
The storage installation of the reserve has dozens of capable private vaults or malfunction of 25 to 60 tons of gold, which are stored in boxes and sealed.
The reserve
But why store them in Singapore specifically?
“Singapore is seen as the ‘Eastern Geneva’; it has a reputation as a safe jurisdiction with relative political and economic stability,” said Shiels.
The role of Southeast Asia nations as a key transit center also makes it an attractive and convenient place for the rich to establish their gold.
“Singapore is a transit center. Any place that is a transit center, habitual makes sense to be a golden vault,” Savory said. “You can bank, you can store your gold there, but you can also pick it up [easily] Because it is a transit center. And this is where Switzerland is losing, “he added.
Althegh Dubai is also a popular transit center with robust security, Savory pointed out that the process of malfunction applied in the city may require more paperwork.
“Dubai is a little more heavy documentation. Some people don’t like documentation,” he said.