Unprecedented Demand for Physical Gold

Gregor Gregersen, founder of The Reserve, highlights a surge in purchases by ultra-high-net-worth individuals, with transactions reaching S$60-70 million (US$46-54 million) in physical gold. "They're prioritizing safety and risk reduction," Gregersen explains, underscoring the growing trend towards tangible assets.

Record-Breaking Growth

Singapore's gold bars and coins demand soared by 35% year-on-year to 2.5 tons in the first quarter, the highest since records began in 2010. This surge comes despite gold prices hitting unprecedented highs, with a 27% increase year to date.

Driving Forces Behind the Surge

Analysts point to global uncertainty and economic risks as key factors fueling the demand for gold as a safe-haven asset. Shaokai Fan of the World Gold Council notes gold's resilience during instability, while local currency fluctuations also play a significant role in its appeal.

Contrasting Trends in Jewelry Demand

While investment in gold bars and coins rises, jewelry demand has fallen by 20% year-on-year, attributed to record-high prices and the additional costs associated with crafting and taxes.

Regional and Future Outlook

The trend in Singapore mirrors broader shifts in ASEAN markets, with similar patterns observed in Indonesia, Malaysia, and Thailand. Looking ahead, analysts anticipate sustained demand for gold, driven by central bank purchases and ETFs, despite challenges in the jewelry sector.