As geopolitical uncertainty drives gold prices to historic highs, Singapore and Hong Kong are stepping up to challenge the long-standing dominance of London, New York, and Switzerland in the precious metals market. With billions at stake and growing demand from ultra-wealthy clients, both Asian financial hubs are laying the groundwork to become the future centres of global bullion storage and trade.
The Reserve: Singapore’s Bold Bet
Singapore’s ambitions are symbolised by The Reserve, a maximum-security vault designed to house 10,000 tonnes of silver and 500 tonnes of gold. Located near Changi Airport, this facility aims to attract family offices and private banks across Asia. However, its current utilisation is still modest — a reminder that infrastructure alone doesn’t create a global hub overnight.
According to Albert Cheng, CEO of the Singapore Bullion Market Association, “London took 200 years to build its infrastructure. We won’t take that long.” Indeed, with political neutrality, robust financial services, and rising investor confidence, Singapore is well-positioned to scale fast.
Hong Kong’s Strategic Move
In parallel, Hong Kong is accelerating its bullion strategy. In his September 17 policy speech, city leader John Lee announced plans to increase the city’s gold storage capacity to 2,000 tonnes by 2027, up from the current 200 tonnes. Backed by its geographic proximity to mainland China — the world’s largest gold consumer and producer — Hong Kong is leveraging its role to attract more regional and global players.
The Shanghai Gold Exchange (SGE) has already made a major move: opening its first offshore vault in Hong Kong and launching two renminbi-denominated gold contracts. Meanwhile, Swiss refineries like Heraeus, Metalor, and MKS Pamp have set up operations in the city, signalling growing institutional interest.
Eastward Shift in Gold Markets
This regional push is also powered by global dynamics. The temporary imposition of US tariffs on gold bars in August — and the confusion that followed — exposed the vulnerability of centralised Western trading systems. Analysts argue that such events create a “window of opportunity” for Asian markets to scale up, diversify, and modernise.
Singapore’s political neutrality is a decisive advantage. Platforms like BullionVault cite it as a key reason for choosing the city over Hong Kong. On the other hand, Hong Kong leads in active trading, thanks in part to the SGE’s new instruments and its direct link to the Chinese market.
What’s Missing? Liquidity and Confidence
Still, challenges remain. Both cities need to improve liquidity, custody, and settlement services to compete with legacy markets. As Gregor Gregersen of Silver Bullion noted, “What really matters in this industry is building up liquidity.”
Hong Kong lags behind Singapore in warehousing infrastructure. The Le Freeport facility, opened in 2010, already offers 30,000 sqm of ultra-secure storage, used by elite companies like Brink’s and Loomis. Originally intended for fine art, it now stores everything from luxury cars to precious metals.
Outlook: A Race Worth Watching
The race is not zero-sum. Singapore leads in storage, Hong Kong in trading. Together, they reflect Asia’s growing clout in global finance. With gold prices expected to remain strong amid economic uncertainty, the strategic moves made today could define the bullion landscape for decades.
One thing is certain: the future of gold is increasingly Asian.