Singapore Launches 500-Tonne Gold Storage Service for Foreign Central Banks
Authorities also plan to exempt certain wholesale services related to precious metals from taxes
The new service is designed for foreign monetary authorities and will be managed by the Monetary Authority of Singapore, unlike existing commercial vaults. The country's authorities believe the platform will help attract more gold transactions to Singapore.
Singapore also plans to exempt certain wholesale services related to gold from taxes, including storage, refining, remelting, assaying, and brokerage operations. In June, the country announced plans to create a physical gold clearing system, with its launch expected in the first quarter of 2027.
These initiatives are intended to strengthen Singapore's position among global gold trading hubs. However, it will have to compete with London and Switzerland, as well as Hong Kong, which is expanding its own storage and clearing infrastructure. For comparison, London's vaults held approximately 9,850 metric tonnes of gold as of the end of October, including metal from commercial organisations and central banks.
Experts note that storage alone is insufficient to create a full-fledged market: Singapore still needs to increase liquidity and trading activity. Attracting central bank gold could help if the stored metal is permitted for use in transactions rather than just held in storage.
Demand and infrastructure for the gold market in Asia are growing, so gold is increasingly moving directly between Asian markets, bypassing traditional European hubs. Hong Kong may have an advantage in working with institutions linked to China, while Singapore may appeal to participants in its banking and financial market. The World Gold Council believes both hubs can develop in parallel.
