The flow of gold bullion from the west to east has been highlighted by Jersey based online physical precious metals trader GoldMoney which saw its Singapore vaults top US$100 million this week.
The amount of gold being imported into China has been well reported, but it’s not just China that is seeing an inflow of gold. Worldwide customers are choosing to store their precious metals in eastern based vaults says Head of Dealing at GoldMoney, Roland Khounlivong: ‘We are seeing a gradual sell-off in the traditional western vaults, particularly Switzerland and the UK, and a move to store gold bullion and silver in Singapore. This is a reflection of Singapore’s rapid development as one of the world’s leading offshore financial centres, and also the eastern preference for physical metal as against the west’s tendency to go for Exchange Traded Funds (ETFs) and paper gold products.’
The GoldMoney head office is in Jersey, but the company has eight storage locations in five countries around the globe: Canada, Hong Kong, Switzerland, Singapore and the UK in partnership with leading vault operators. The two Singapore vaults are run by Malca-Amit, and Brink’s.
CEO of GoldMoney, Geoff Turk said the move to Singapore has been rapid: ‘We opened our first vault in Singapore in December 2012 in answer to customer demand, and since then we have reported a steady flow from western vaults, along with new purchases into Singapore. That’s US$102 million in just 16 months, a trend that cannot be ignored. Our customers clearly want a fully allocated physical metal storage option which is outside of the western banking system but comes fully regulated and insured.’
Category: Finance & Business