Economic and geopolitical uncertainties leading to financial market turbulence are causing the world's top wealthy individuals to increasingly prefer relocating their overseas-stored gold to safer locations, with Singapore becoming their preferred destination.
According to a CNBC report, the founder of Singapore's precious metal storage facility 'The Safe House,' Gossean, noted that from January to April this year, the orders they received for gold and silver storage surged by 88% compared to the same period last year.
The Safe House also sells gold and silver bars, and according to their data, the sales of gold and silver bars in the first four months of this year skyrocketed by 200% compared to the same period last year.
Industry observers indicate that this phenomenon is due to the growing sense of unease among the wealthy.
Gossean told CNBC: 'Many clients with very high net worth are now looking at tariffs, the changing world, and potential geopolitical instabilities. This makes placing physical metals in a safe country like Singapore, and having them managed by a trusted party, a major trend today.'
He also mentioned that more and more wealthy individuals are opting to purchase physical gold bars rather than gold certificates because they want to avoid the risks associated with counterparty transactions and geopolitical issues.
The World Gold Council's Chief Market Strategist, Juan Carlos Artigas, stated: 'Some people hold physical precious metals because they have reservations about storing gold within the banking system, even if it is stored in a diversified manner. They prefer holding gold in a way managed by non-bank entities.'
Precious metals dealer MKS Pamp's Director of Research and Metal Strategy, Shiels, explained: 'Singapore is seen as the 'Geneva of the East' due to its relatively stable political and economic environment, thereby earning a reputation as a safe country.'