The World Gold Council predicts that Singapore will become the leader of the gold market as the center of gravity shifts east.

• The World Gold Council's Head of Asia-Pacific and Global Head of Central Banks, Shaokai Fan, stated that Singapore is poised to become a leading gold hub as trading shifts east.
• Fan explained that the country's proximity to central banks actively purchasing gold is a significant factor in its gold demand.
• A significant increase in gold consumption is occurring in major emerging market economies, primarily in Asia.

According to the World Gold Council, Singapore is poised to become a prominent gold trading center as activity moves to the east.

Gold consumption is increasing in major emerging economies, with the majority of these markets being located in Asia, according to Shaokai Fan, head of Asia-Pacific and global head of central banks.

The proximity of Singapore to these central banks that are actively purchasing gold is another factor, he stated.

According to Fan, the center of gravity in the gold market has shifted east, with Singapore being the potential fulcrum of this new balance, as stated at the Asia Pacific Precious Metals Conference held in Singapore.

The central bank of China is the largest buyer of bullion, as China is the world's largest gold consumer and seeks to increase its gold reserves.

In 2023, the People's Bank of China was the largest central bank purchaser of gold.

The WGC's recent report revealed that Japan experienced the strongest first quarter gold jewelry demand since 2019, indicating continued resilience in gold demand.

In more than two years, South Korea has recorded the most significant quarterly rise in gold purchases.

Singapore is located near approximately 25% of the world's gold mining supply centers, including China, Australia, Indonesia, the Philippines, Papua New Guinea, and Laos.

Central bankers worldwide are increasingly concerned about the need to source for an official gold reserve center, particularly amidst a volatile geopolitical climate. Fan stated that Singapore could emerge as a "truly viable alternative" to London and New York as a hub for central bank gold vaulting.

Fan stated that Singapore is set to become the leader of the gold market in the future, with factors such as its dedication to maintaining political stability and the removal of sales tax on investment gold contributing to its crucial role in the bullion market's future.

Fan explained that Singapore's position as a leading hub for gold trading has been strengthened by the removal of GST on investment gold and the establishment of good delivery refineries here.

Since October 2012, Singapore's government has not imposed a sales tax on investment grade precious metals.