Asia's Global Precious Metals : Trade Hub

Global investment demand in gold has more than doubled since 2009 to 1,377 tonnes in 2013, with East Asia and the Indian subcontinent accounting for more than 70% of global physical bar investment. The sharp correction in gold prices in the second quarter of 2013 saw unprecedented levels of physical demand for the metal in Asia. Chinese and Indian consumers, encouraged by the price fall, increased their holdings of gold jewellery, bar and coin investments. Asia clearly is the driver of the rising global demand for gold, underpinned by growing houasehold incomes and a deep cultural affinity for the metal.

Commodities Trading - Precious Metals

Why Singapore?

Commodities Trading - Precious Metals

Singapore Kilobar Gold Contract

At the 2014 London Bullion Market Association (LBMA) Bullion Market Forum, Mr Lim Hng Kiang, Minister for Trade and Industry, announced a new exchange-traded Singapore Kilobar Gold Contract. This is the first wholesale 25 kilobar gold contract to be offered globally, and is expected to go ‘live’ as early as September 2014. The Contract will introduce centralised trading and clearing of a physically-delivered gold contract in Singapore. With this Contract, global suppliers of gold are able to connect more effectively with their Asian clientele. The Contract comprises a series of six daily contracts, which will give physical users access to competitively-priced kilobars. 

Learn more about Singapore's Kilobar Gold Contract

Commodities Trading - Precious Metals

Wealth Management Hub

Physical allocation of gold in the portfolios of wealthy investors has been growing, in contrast to the outflow of gold-backed financial products. Against the uncertain global macroeconomic backdrop, both private and institutional clients have been demanding for their physical gold to be stored in a neutral and alternate location. Singapore is well-positioned to accommodate the growing demand for physical precious metals, riding on its reputation as a wealth management hub. This has resulted in the set-up of dedicated gold vaults by several bullion banks such as ANZ Bank, Deutsche Bank and UBS. 

Commodities Trading - Precious Metals

World Class Physical Infrastructure

Singapore’s infrastructure will support the expected uptick in gold trading activity: Metalor Technologies has chosen Singapore to construct a gold refinery and bullion product manufacturing plant. On secure storage, the establishment of the Singapore Freeport in 2010 provided Asia with its own Fort Knox, outfitted with cutting-edge security. Located next to Singapore’s Changi International Airport, it offers 22,000 sqm of strong rooms and show rooms with direct access to the airport runway and 24/ 7 armed guards. A wealth of secure logistics providers, including established logistics players Malca Amit, Brink’s and other service providers operate the vaults in the Singapore Freeport, providing experience and expertise in precious metal-handling. 

Commodities Trading - Precious Metals

Strong Government Support

The Singapore Government is dedicated to making Singapore a precious metals trading hub. From October 2012, investment precious metals (IPM) have been exempted from Goods & Services Tax (GST). There are no licensing requirements for the import/ export of metals, ensuring the free flow of such metals through Singapore with minimal hassle. In addition, approved refiners or consolidators will enjoy GST suspension on imports for inputs to the processing of IPM in Singapore.

Investment Precious Metals (IPM) e-Tax Guide

Approved Refiner and Consolidator Scheme (ARCS) e-Tax Guide

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