Due to the fact that the “center of gravity” is shifting to the east, the World Gold Council believes that Singapore is well positioned to assume the position of leader in the gold market.
In light of the fact that commerce is moving in an easterly direction, Shaokai Fan, who is the Head of Asia-Pacific and Global Head of Central Banks for the World Gold Council, believes that Singapore is well positioned to become a big gold hub.
Fan notes that one of the key reasons for this is that the country is situated in close proximity to these central banks that are actively acquiring gold. This is one of the primary reasons why this is the case.
Additionally, there has been a rise in the use of gold by major emerging market economies, the most of which are situated in Asia. This trend has been seen in recent years.
The World Gold Council asserts that Singapore is on the approach of becoming a big gold hub as the commerce of gold shifts toward western areas. This is due to the fact that Singapore is located in central Asia.
Shaokai Fan, who is the head of Asia-Pacific and the global head of central banks, believes that one of the fundamental reasons is that the consumption of gold in major emerging countries is expanding, and the majority of these markets are geographically based in Asia. This is one of the primary reasons why gold prices are continuing to rise.
After that, he went on to remark that another problem is the proximity of Singapore to these central banks, who are making aggressive purchases of gold.
Fan expressed his thoughts on the matter at the Asia Pacific Precious Metals Conference, which took place in Singapore. “The center of gravity of the gold market has shifted east, with Singapore, fortuitously placed as the potential fulcrum of this new balance,” Fan said in his remarks.
During this time when the Chinese government is working to enhance its gold reserves, the Chinese central bank is the most important buyer of bullion. In terms of gold consumption, China is the largest consumer in the world.
In 2023, the People’s Bank of China was the central bank that made the most number of gold purchases, surpassing the total purchases made by any other central bank.
According to Rebecca Patterson, China is the most major factor that is contributing to the continued rise in the price of gold now.
According to a recent survey conducted by the World Gold Council (WGC), Japan has once again shown its resilience in terms of gold demand. The country’s demand for gold jewelry during the first quarter of 2019 was the highest it has been since 2019.
Additionally, as compared to the previous quarter, South Korea has had the biggest quarterly rise in gold purchases in over two years. This development has been observed in South Korea.
Furthermore, Singapore is situated in close proximity to around twenty-five percent of the primary supply hubs for gold mining that are discovered across the globe. China, Australia, Indonesia, the Philippines, Papua New Guinea, and Laos are some of the countries that are included in these supply hubs.
According to Fan, central bankers all over the world are getting more worried about the need of finding a source for an official gold reserve center. This is especially worrying in view of the fact that the geopolitical situation is becoming increasingly unpredictable. In his opinion, Singapore has the potential to become a “truly viable alternative” to London and New York in terms of its function as a hub for the vaulting of gold by central banks. This is something that he believes Singapore is capable of doing.
As the phrase goes, the price of gold has the ability to “continue to make new highs.” “Singapore is poised to lead the gold market in the future,” Fan said, expanding on the fact that other reasons contributing to Singapore’s significant role in the future of the bullion market include the country’s commitment to political stability and the abolition of sales tax on investment gold. He said that Singapore is poised to lead the gold market in the future. According to Fan, Singapore is well positioned to take the lead in the gold market in the years to come.
Fan brought attention to the fact that Singapore’s position as a significant hub for gold trading has been enhanced as a result of the elimination of the Goods and Services Tax (GST) on investment gold in Singapore, as well as the development of superior delivery refineries in this country.
In October of 2012, the government of Singapore began granting investment grade precious metals an exemption from the Goods and Services Tax (GST), which is more popularly known as a sales tax. This exemption has been in effect since that time.
