Singapore's Vaults Attract Ultra-Rich Amid Global Risks and Trump Volatility

The ultra-rich are increasingly storing their gold in Singapore due to global risks and volatility. Some investors prefer to hold gold outside the banking system, while others lack trust in domestic banks. Vaulted gold may be less attractive for short-term investors due to higher transaction costs compared to paper gold.

As global risks and volatility continue to rise, ultra-rich investors are increasingly turning to Singapore for gold storage. This trend is driven by the island nation's robust financial infrastructure, political stability, and strategic location. Some investors prefer to hold gold outside the banking system, while others lack trust in domestic banks, making Singapore an attractive alternative.

Singapore's appeal is further enhanced by its favorable tax regime and strong legal framework. The country's Monetary Authority of Singapore (MAS) has been actively promoting gold as a safe-haven asset and has taken steps to facilitate its storage. In 2024, MAS introduced a regulatory framework to grant retail investors access to the private market with proper safeguards, further boosting the city-state's appeal [1].

The growing interest in gold storage in Singapore is part of a broader trend in Asia. Private credit funds are targeting billions of dollars from retail investors in the region. For instance, in Japan, financial services firm Keyaki Capital has launched the country's first online investment platform for private credit, targeting wealthier individuals [1].

Despite the growing demand, vaulted gold may be less attractive for short-term investors due to higher transaction costs compared to paper gold. However, for long-term investors, the benefits of physical gold storage in Singapore outweigh the costs. The island nation's strong infrastructure, political stability, and favorable tax regime make it an ideal location for long-term gold storage.

In conclusion, the ultra-rich are increasingly storing their gold in Singapore due to global risks and volatility. The city-state's robust financial infrastructure, political stability, and strategic location make it an attractive destination for gold storage. As global risks continue to rise, we can expect to see more investors turning to Singapore for their gold storage needs.

References:
[1] https://www.pionline.com/alternatives/private-credit-funds-target-billions-retail-demand-asia