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Singapore — The World Gold Council says Singapore will become a leading gold center as trade shifts eastward.
Fan Shaokai, the central bank’s head of Asia-Pacific and global head, said a key reason is that gold consumption is rising in major emerging economies, and most of these markets are concentrated in Asia.
Singapore’s proximity to these central banks, which are actively snapping up gold, is another factor, he added.
“The center of gravity of the gold market has shifted eastward, and Singapore happens to be a potential fulcrum for this new balance,” Fan told the Asia Pacific Precious Metals Conference in Singapore.
China is the world’s largest consumer of gold and its central bank is also the largest buyer of gold as it seeks to increase its gold reserves.
Among central banks, the People’s Bank of China is the largest buyer of gold in 2023.
Also, Singapore is very close Approximately 25% of global gold mine supply Centers such as China, Australia, Indonesia, Philippines, Papua New Guinea and Laos.
Fan said the need to establish official gold reserve centers has become a growing concern for central bankers around the world, especially against the backdrop of a volatile geopolitical climate. He added that Singapore could become a “real viable alternative” to London and New York as a central bank gold custody centre.
“Singapore is well-positioned to lead the future of the gold market,” Fan said. He elaborated on other factors that will make Singapore play an important role in the future of the gold market, including the country’s commitment to political stability and the elimination of sales tax on investment in gold.
“Singapore’s elimination of the GST on investment gold and the establishment of a good delivery refinery here have cemented Singapore’s position as a leading center for gold trading,” explained Fan.
Since October 2012, the Singapore government has exempted Goods and Services Tax (GST), also known as sales tax, on investment grade precious metals.
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