Singapore is set to become a major global gold trading hub

Singapore is emerging as a global gold trading hub as gold trading shifts towards Asia, according to the World Gold Council (WGC). This shift is driven by rising gold consumption in major emerging economies, many of which are located in Asia.

Singapore’s strategic location is key to this development, which places it near central banks actively increasing their gold reserves. This geographic advantage also brings Singapore close to approximately 25% of the world’s gold mining supply centers, including countries such as China, Australia, Indonesia, the Philippines, Papua New Guinea and Laos.

The geopolitical volatility around the world has heightened the need for secure gold reserve centers, making Singapore an attractive alternative to traditional gold vaulting hubs like London and New York. The city-state’s political stability further enhances its appeal.

Singapore’s favorable tax policies also play a crucial role. Since October 2012, the government has exempted investment-grade precious metals from the Goods and Services Tax (GST). Establishing good delivery refineries in Singapore has also strengthened its position as a leading hub for gold trading.