Ultra-flops are increasingly moving their gold in Singapore. A growing sense of discomfort encourages an increase. Rich investors also decide for physical gold levers instead of paper for several reasons.
“The idea of accommodation of physical metal in safe jurisdiction such as Singapore in the parties to believe in becoming a great trend today,” says Gregor Gergesen, the founder of the Reserve.
Ultra-flops are increasingly moving their gold abroad because the economic and geopolitical uncertainty of the market earthquake – and Singapore appears as a favorite destination.
Not far from the city-state airport, there is a six-storey object covered with onyx and determined by strict insurance. Behind the steel doors are hidden gold and silver levers worth about $ 1.5 billion.
Known as “The Reserve”, the warehouse contains dozens of private treasuries and a high storage chamber with thousands of safes that reach the three-floor height.
From the beginning of the year until April, the storage of precious metals recorded an increase in orders for storage gold and silver in the vault of 88% compared to the same period 2024. years, his founder Gregory Gregsen said. The Reserve, which also sells gold and silver lever, recorded an increase in sales of precious metals from 200% compared to the previous year, the data provided by the Reserve.
Singapore is considered ‘Geneva East’; It has a reputation of safe jurisdiction with relative political and economic stability.
Nicky Shiels
According to industry observers, the growing sense of discomfort stimulates the increase.
“Many customers with a very high net value are considering tariffs, look at the world that changes, look at the potential of geopolitical instabilities,” Gregsen said for CNBC.
“The idea of accommodation of physical metal in safe jurisdiction like Singapore with sides to believe becomes a great trend today,” he said, adding that 90% of new orders come outside Singapore.
The growth of gold was meteoric in recent months, and gold prices recorded successive record levels, seebiz. This is partially encouraged by his attractiveness of a safe haven faced with volatility caused by trade tensions between the United States and China and the mass sales of property in the US in April.
Although gold prices have recently cooled after the risk investor improved after defrosting trading tensions between two economic superpocks, some market observers still believe to climb up to $ 5,000 per ounce. Spot of gold prices are currently traded at a price of 3346.32 dollars per ounce, near the historical levels.
Physical levers versus paper
Rich are also more and more decided for physical gold levers instead of paper because they do not want so much risk from the other contracting side and geopolitical risks, Gergesen said. Although storing and possession of physical gold is not completely free of price exposure, limits the exposure to certain risks that carries paper gold.
For example, the risks of the other Contracting Parties are lower if someone directly possesses property. The crisis of the Silicon Valley of the Bank that took place in 2023. The inclination of the investor in physical possession or secure allocation of paper requirements or possessions of the bank failed, said Nicky Shiels, Metal Head in MKS PAMP, Firms for Refining and Trade precious metals.
Distrust into part of banks
The main market strategist of the World Gold Council, John Readed, also noted that this is a particular case for those who are concerned about the health of the global financial system.
“Some of the owners of physical precious metals are careful in terms of gold storage within the banking system, even in allocated form, so they prefer gold in non-bank subjects,” Reade said.
Lack of trust in some domestic banks is also a key moisture, said Jeremy Savory, the founder of Millionaire Migrant, a consulting firms based in Dubai, which provides companies related to individuals with high net worth.
“If you are in the country where you do not trust the banking system, for example, Lebanon or Egypt or Algeria,” Savory said, whose clients are involved in the world-winning world in the vault in Switzerland, Singapore and Dubai.
In addition, treasury gold can be less attractive for short-term investors, given that the transaction costs for purchase and relocation of physical gold are greater than the costs of paper gold, Reaged from the World Council for Gold.
