Physical gold sales in Singapore have experienced a significant uptick in the first four months of 2025, with bullion demand soaring to 2.5 tonnes in the first quarter, a 35% increase year-on-year, marking the sharpest rise since 2010, according to Channel News Asia. Despite gold prices breaching the $3,000 mark in March and reaching $3,500 shortly thereafter, investor interest in gold remains strong.
Analysts attribute the surge in demand to growing economic uncertainty, prompting a shift toward safer investments like gold. High-net-worth individuals are increasingly converting paper assets into physical gold, opting for secure vault storage as a hedge against financial instability.
Reports from across Asia, including India and China, indicate a rise in gold purchases, with some regions experiencing shortages in supply. Many investors are capitalizing on the recent dip in gold and silver prices after the earlier highs seen in 2025.
The World Gold Council noted that waning confidence in traditional safe-haven assets such as the US dollar and Treasury bonds has enhanced gold’s appeal. However, not all segments of the market are benefiting equally. Demand for gold jewelry dropped by 20% in the first quarter, as higher prices, coupled with additional costs such as the Goods and Services Tax (GST), deterred buyers. In contrast, investment-grade bullion, which is exempt from such taxes, has become the preferred choice for many.
Looking ahead, analysts predict sustained demand for gold, bolstered by continued central bank purchases and ongoing geopolitical tensions. This, they say, is likely to push gold prices to new record highs in the latter half of the year.
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