Singapore has been identified by the World Gold Council as the next leading gold hub as the market shifts towards the east. The increase in gold consumption in major emerging economies, particularly in Asia, is a key factor driving this shift. Shaokai Fan, head of Asia-Pacific and global head of central banks, emphasized the importance of Singapore’s proximity to major gold-consuming markets in Asia, making it an ideal location for central banks actively acquiring gold.
Central banks, especially in countries like China and Japan, are increasingly purchasing gold to boost their reserves. In 2023, the People’s Bank of China was the largest buyer of gold, reflecting the country’s strategy to strengthen its gold holdings. Japan and South Korea have also exhibited a strong demand for gold, further contributing to the shift towards the east.
Singapore’s strategic location in close proximity to key gold mining centers in Asia, such as China, Australia, and Indonesia, enhances its position as a potential central hub for gold trading. The need for an official gold reserve center has become a pressing concern for central banks worldwide, especially in the face of geopolitical uncertainties. Fan highlighted that Singapore could emerge as a viable alternative to traditional gold trading hubs like London and New York.
Several factors are working in Singapore’s favor as it aims to become a leading player in the gold market. The country’s commitment to political stability and the removal of sales tax on investment gold have bolstered its appeal to investors and central banks. The establishment of good delivery refineries in Singapore has also enhanced its reputation as a reliable center for gold trading.
Singapore is well-positioned to take on a prominent role in the future of the gold market. With growing demand for gold in Asia and the shift of trading towards the east, Singapore’s strategic advantages and investor-friendly policies make it a strong contender to lead the gold industry in the coming years.
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