Singapore is becoming the “Geneva of the East” for storing gold reserves of ultra-wealthy investors from around the world in 2025. Geopolitical uncertainty and growing distrust in traditional financial institutions has caused a massive shift of physical gold to this Southeast Asian country, with storage orders rising by a record 88% and gold bar sales increasing by an incredible 200% compared to the previous year.
Record Boom of Physical Gold in Singapore
The luxury storage facility “The Reserve,” located near Singapore’s airport, contains gold and silver bars worth $1.5 billion. This six-story building covered in onyx features thousands of security boxes reaching three stories high. According to founder Gregor Gregersen, this phenomenon is driven by growing concerns about economic instability: “Very high net worth clients are looking at tariffs, looking at the world changing, looking at potential geopolitical instabilities.”
Physical vs Paper Gold: Why the Wealthy Are Changing Strategy
Ultra-wealthy investors are increasingly choosing physical gold bars over paper instruments for strategic reasons:
- Elimination of counterparty risk – The Silicon Valley Bank crisis in 2023 strengthened preferences for direct ownership of specific bars
- Protection against systemic risks – Independence from banking systems and paper claims
- Geopolitical security – Tangible asset resistant to currency crises
“Some holders of precious metals are wary of storing gold within the banking system, so they prefer entities that are not banks,” explains John Reade from the World Gold Council.
Singapore: New Precious Metals Storage Hub
Singapore is gaining dominance through a unique combination of advantages that traditional centers like Switzerland are gradually losing:
- Strategic location – As a key transit hub, it enables easy access to stored gold
- Minimal bureaucracy – Unlike Dubai, it requires less documentation
- Political stability – Reputation as a safe jurisdiction with minimal regulatory risks
- Advanced security – State-of-the-art systems and trustworthy storage partners
“Singapore is a transit hub. You can bank there, store your gold, but also easily pick it up. And this is where Switzerland is losing out,” says Jeremy Savory from Millionaire Migrant.
Price Outlook: Gold Heading Toward $5,000 Per Ounce
Spot gold prices currently trade around $3,346 per ounce at historic highs, representing meteoric growth driven by safe-haven demand. Market analysts predict possible growth up to $5,000 per ounce by next year, fueled by tensions in US-China relations and massive sell-offs of American assets in April this year.
Global Exodus from Traditional Banks
Distrust in domestic banking systems is driving wealthy investors from economically unstable regions to international private vaults. “If you’re in a country where you don’t trust the banking system – Lebanon, Egypt, Algeria – you don’t want gold in the bank,” confirms Savory, whose clients are actively moving assets to Singapore, Switzerland, and Dubai.
This global trend signals a fundamental shift in capital movement among the wealthiest segments and shows how current geopolitical tensions are reshaping traditional investment strategies of the ultra-wealthy segment across the planet.
