Recently, the latest data released by the Singapore Precious Metals Association showed that in the second quarter of 2026, gold storage in Singapore vaults rose 15% quarter-on-quarter and 28% year-on-year, hitting a record high. This reflects investors' growing preference for physical gold and further consolidates Singapore's position as Asia's precious metals hub.
Safe-haven sentiment drives surge in storage demand
Amid intensifying global geopolitical uncertainty and unclear monetary policy paths of major economies, more institutional investors and ultra-high-net-worth family offices are making physical gold an important part of asset allocation. With well-established infrastructure, high political stability, and strict banking secrecy, Singapore has become the preferred destination for gold storage and delivery in Asia.
According to Lin Zhenwei, Secretary-General of the Singapore Precious Metals Association, the new gold storage in Q2 mainly came from local family offices and wealth management institutions based in Hong Kong and the Middle East. He said: "Since last year, we have clearly felt strong demand for physical gold in the Asia-Pacific region, especially from long-term funds seeking to hedge currency and geopolitical risks."
Vault expansion plans accelerate
To meet the rising storage demand, several licensed precious metals warehouse operators in Singapore have launched expansion plans. The first large vault project near Changi Airport was put into operation in May this year, with a designed storage capacity of over 200 tonnes. Another vault operated by a Swiss precious metals service provider also plans to add 50% more storage space in the fourth quarter.
The sharp rise in vault storage not only reflects capital seeking safety, but also signals that Singapore's role in the global gold supply chain is shifting from a "trading transit point" to a "physical settlement center".
Local retail market also heats up
Echoing strong institutional demand, retail buying interest in gold in Singapore has also risen notably. According to the local gold retailers' association, sales of gold coins and bars at Singapore gold shops rose 20% week-on-week in the last week of July, with 1-ounce and 50-gram investment bars the most popular.
In traditional jewellery districts such as Chinatown, many shops saw queues. A gold shop manager surnamed Lee revealed: "Over the past month, our daily customer traffic has increased by 30%, and many customers bought multiple gold coins at a time." He added that besides safe-haven factors, the weakening of the Singapore dollar against the US dollar has also prompted some people to use gold as a store of wealth.
Digital gold platforms see user growth
Notably, digital gold trading platforms approved by the Monetary Authority of Singapore have recently reported a sharp increase in user numbers. One platform added 40% more registered users quarter-on-quarter in Q2, with total gold under custody surpassing 50 tonnes.
Analysts believe that digital gold platforms have lowered the entry barrier, allowing more retail investors to participate in the physical gold market at lower cost and further broadening the base of local gold demand.
Singapore gold market expected to stay active
Looking ahead, many industry players are optimistic about Singapore's gold market. Chen Zhiqiang, Chairman of the Singapore Precious Metals Dealers Association, said that with global central banks continuing to buy gold and Asian investors gradually increasing physical asset allocation, both gold storage and trading volume in Singapore will maintain growth momentum.
On the price front, although international gold prices have been hovering around $5,200 per ounce, strong physical demand provides solid support. In the short term, local gold prices in Singapore will continue to track the international market, also influenced by fluctuations in the US dollar index and US Treasury yields. However, if geopolitical risks escalate again, safe-haven buying could push Singapore gold prices to challenge record highs once more.
Industry analysis points out that the precious metals market, with Singapore's strategic location and regulatory advantages, is attracting more global capital. In the future, as more vault facilities are completed and the regulatory framework improves, Singapore is expected to further narrow the gap with traditional gold markets such as London and New York, becoming one of Asia's most important physical gold hubs.
