Singapore is drawing physical gold investments away from established hubs such as London and Switzerland, supported by tax advantages and expanding local infrastructure. The trend involves wealthy individuals from the United States, Europe, and the Middle East seeking to diversify the storage locations for their precious metals in response to conflicts, rising government debt, and domestic political conditions. According to estimates from the precious metals dealer J. Rotbart & Co., private gold reserves in Singapore increased approximately sixteenfold between 2014 and the previous year, surpassing 800 tonnes, with the majority of the growth originating in Europe.
Industry participants note that families with legacy wealth are relocating portions of their physical gold holdings to Singapore, while other families are purchasing bullion for the first time through private banks or direct dealers. Gregor Gregersen, a former bank data architect, operates a six-story mega-vault named The Reserve with a surface area of 16,700 square meters. The facility offers capacity for roughly 10 percent of the annual global gold supply and 30 percent of the annual silver supply. Customer gold holdings in his storage program tripled since the beginning of 2020, reaching 8.6 tonnes in September, with approximately 90 percent attributed to foreign clients. Overall, data from operators indicate that Singapore can store at least 2,200 tonnes of gold across two privately operated high-security vaults, which includes 500 tonnes at The Reserve and at least 1,700 tonnes in Le Freeport, a facility sometimes referred to as Asia's Fort Knox.
Proponents of the city-state point to its stability, wealth, and defense capabilities as factors that attract long-term investors looking to store assets for decades. Richard Wang, who leads the Singapore branch of J. Rotbart & Co., reported that web inquiries from Western clients tripled over the past year, driven primarily by prospective buyers from the United States, followed by Canada, Great Britain, and Australia, who expressed concerns over the U.S. budget deficit and political uncertainty. David J. Mitchell, founder and managing director of the dealer Indigo Precious Metals, stated that demand for ounces by affluent individuals from Europe and America accelerated by roughly 25 percent over the past year. Another precious metals platform, Gauld, reported that around 40 percent of its European customers shifted gold from Switzerland to Singapore or selected Singapore for new purchases, with some clients rethinking their stance on Switzerland following the freezing of sanctioned Russian assets.
Government and financial institutions in Singapore are actively seeking to expand this commercial activity as the city-state competes with Hong Kong to serve as Asia's primary gold trading center. In June, officials announced that the Singapore Exchange will launch an over-the-counter clearing system for gold by the end of 2026. Additionally, the Monetary Authority of Singapore stated it will introduce vaulting services for foreign central banks and government entities, and the government expanded tax exemptions this year for eligible funds and family offices investing in physical precious metals. Trade Data Monitor figures show that Singapore's gold imports rose 44 percent to 171 tonnes through August of the current year, though these inflows remain small compared to London, which dominates global precious metals trading with reserves nearly 60 times larger, mostly comprising central bank holdings. Comex futures warehouse stocks in New York stood at approximately 730 tonnes.
Financial institutions are broadening their offerings to accommodate this demand. Nomura Holdings initiated physical gold custody services in Singapore to address inquiries from regions including the Middle East, according to Akshay Prasad, head of investment products and advisory solutions in the bank's international wealth management division. The Oversea-Chinese Banking Corp. expanded its physical gold operations this year, and inventory volumes held by clients of its private banking subsidiary, the Bank of Singapore, grew by more than 40 percent since the end of 2025 as both domestic and international clients increasingly trade through Singapore-based units.
