As geopolitical volatility and financial uncertainty grip the global economy, the ultra-rich are increasingly turning to Singapore as a trusted haven for storing physical gold. This surge in demand underscores growing concerns over market stability, trade tensions, and geopolitical disruptions — including potential instability linked to a second Donald Trump presidency in the United States.
Behind fortified steel doors in a sleek six-story facility near Changi Airport, approximately $1.5 billion worth of gold and silver lies securely stored. Known as “The Reserve,” this private bullion repository has seen a sharp spike in business this year. According to founder Gregor Gregersen, orders to store precious metals at the facility surged 88% from January to April compared to the same period in 2024, while sales of gold and silver bars more than tripled, marking a 200% year-on-year increase.
Safe Haven Appeal Soars
“A lot of very high-net-worth clients are looking at tariffs, world instability, and the potential for geopolitical conflict,” said Gregersen in an interview with CNBC. “The idea of putting physical metal in a safe jurisdiction like Singapore with trusted partners is becoming a major trend.”
An estimated 90% of new clients storing precious metals at The Reserve are based outside of Singapore, reflecting a growing global appetite for secure offshore holdings. The appeal of physical assets — especially gold — has been reignited amid fears of inflation, monetary tightening, and a lack of faith in financial institutions.
Gold Prices Near Historic Highs
Gold prices have soared in recent months, driven by a flight to safety. Spot gold recently traded at $3,346.32 per ounce, hovering near record highs. Analysts suggest prices could reach $5,000 per ounce by next year if global instability continues, though prices have eased slightly following a temporary easing of U.S.-China trade tensions.
This renewed interest is also spurred by April’s dramatic U.S. asset sell-off, which rattled markets and reaffirmed gold’s role as a hedge against systemic risk.
Physical Gold vs. Paper Gold
Beyond price movements, wealthy investors are increasingly opting for physical gold bars over paper-based gold investments, aiming to reduce counterparty and geopolitical risk. The collapse of Silicon Valley Bank in 2023 deepened this trend, as investors prioritized direct ownership of specific, allocated gold bars stored outside the banking system.
“Some holders of physical precious metals are wary of storing gold within the banking system, even in allocated form,” said John Reade, chief market strategist at the World Gold Council. “They prefer to hold gold with non-bank entities.”
Similarly, Nicky Shiels, head of metals strategy at precious metals firm MKS Pamp, noted that direct ownership reduces exposure to systemic failures. “It’s about limiting vulnerability when institutions or governments come under pressure,” she said.
Distrust in Domestic Banking Systems
In some regions, this gold rush is also fueled by distrust in local banking systems. According to Jeremy Savory, founder of the Dubai-based consultancy Millionaire Migrant, high-net-worth individuals from countries like Lebanon, Egypt, and Algeria are moving assets out of domestic banks and into gold vaults in global hubs such as Switzerland, Dubai, and Singapore.
“If you’re in a country where you don’t trust the banking system, you’re not putting your gold in a local bank,” Savory said. “You’re moving it offshore — and Singapore is now the top choice for many.”
While vaulted gold comes with higher upfront costs and less liquidity than paper gold, it offers long-term security — a trade-off many wealthy investors are willing to make amid today’s uncertain environment.
Why Singapore?
Singapore’s rise as a global precious metals hub is no accident. It is widely regarded as the “Geneva of the East,” combining political stability, legal clarity, strong property rights, and world-class infrastructure. Its location as a major transit and financial hub further strengthens its appeal.
“Anywhere that is a transit hub usually makes sense for gold storage,” said Savory. “Singapore is like Switzerland but with fewer bureaucratic hurdles. You can bank, store, and even easily retrieve your gold when needed.”
While Dubai also boasts strong security and a growing reputation in gold trading, it often requires more documentation — a deterrent for clients who prioritize privacy.
“Some people don’t like a lot of paperwork,” Savory added.
Outlook
As uncertainty continues to shape investor behavior in 2025, Singapore’s role as a safe haven for wealth preservation appears set to grow. With ultra-rich individuals seeking greater control and security over their assets, physical gold — stored far from political and financial turmoil — is becoming a pillar of global wealth strategy.
“People aren’t just looking for investment returns,” said Gregersen. “They’re looking for resilience — and gold in Singapore offers just that.”
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