Singapore’s Gold Investment Boom: A 2025 Snapshot
Singapore’s appetite for gold has soared to new heights in 2025, with investment in gold bars and coins jumping 37% year-on-year to 2.2 tonnes in the second quarter, according to the World Gold Council. This surge, while just below the historic high of 2.5 tonnes set in the first quarter, underscores a powerful trend: Singaporeans are increasingly turning to gold as a safe haven amid global uncertainty, volatile markets, and record-breaking prices.
While gold investment is booming, demand for gold jewelry in Singapore has declined, falling 8% to 1.5 tonnes as high prices dampen consumer spending. This mirrors a global pattern, with jewelry consumption dropping to levels last seen during the pandemic. Yet, the overall value of the jewelry market has risen, reflecting the impact of elevated gold prices.
What Is Driving Singapore’s Gold Rush?
The surge in gold investment is not unique to Singapore. Across Southeast Asia, countries like Indonesia, Malaysia, and Thailand also reported double-digit growth in gold bar and coin purchases in the second quarter of 2025. However, Singapore’s rise is particularly notable for several reasons:
- Safe-Haven Demand: Investors are seeking protection from economic and geopolitical risks, including trade tensions, inflation fears, and market volatility.
- Accessibility: Banks and fintech platforms have made it easier than ever for both retail and wealthy investors to buy gold, even in small fractions.
- Singapore’s Status as a Gold Hub: Favorable tax policies, robust regulation, and a reputation for security have made Singapore a magnet for both local and international gold investors.
According to OCBC, the number of customers investing in gold more than doubled in April 2025 compared to the previous year, with about 90% being retail or personal banking clients. UOB reported an 85% increase in gold savings account purchases and a 64% rise in physical gold trading volume in the first four months of the year. Gold dealers have also seen a jump in sales, especially among ultra-high-net-worth individuals, some of whom are buying S$60-70 million (US$46-54 million) worth of physical gold at a time.
Fractional gold investing—where buyers can purchase as little as 0.1g to 5g of gold—has lowered the entry barrier, attracting younger and first-time investors. Digital platforms and gold-backed ETFs are also gaining popularity, particularly among tech-savvy Singaporeans aged 25 to 40.
Why Is Gold So Attractive in 2025?
Gold’s enduring appeal as a store of value is rooted in its unique characteristics:
- Safe Haven Asset: Gold is often seen as a hedge against inflation, currency devaluation, and financial market turmoil. When uncertainty rises, so does demand for gold.
- Liquidity: Gold can be easily bought, sold, and converted into cash, making it a flexible asset for investors of all sizes.
- Portfolio Diversification: Gold’s low correlation with other asset classes (like stocks and bonds) makes it an effective tool for reducing overall investment risk.
Mr. Shaokai Fan, head of Asia-Pacific (ex-China) and global head of central banks at the World Gold Council, explained the trend:
“Geopolitical tensions, market volatility, and macroeconomic uncertainty will continue to drive investment demand in gold.”
He added that central banks are expected to keep adding gold to their reserves in the long term, reinforcing gold’s status as a strategic asset.
Singapore: The ‘Geneva of the East’ for Gold Storage
Singapore’s reputation as a secure, stable, and business-friendly jurisdiction has made it a preferred destination for storing gold, especially among the ultra-rich. According to CNBC, private vaults like The Reserve near Changi Airport have seen an 88% increase in gold and silver storage orders and a 200% jump in precious metals bar sales year-on-year. Most new orders come from outside Singapore, as wealthy clients seek to shield their assets from global instability and potential banking crises.
Singapore offers several advantages for gold investors:
- No Sales or Capital Gains Tax: Gold bars meeting purity standards are exempt from sales and capital gains taxes.
- Robust Regulation and Transparency: The government enforces strict standards for gold dealers and storage facilities.
- High Security: State-of-the-art vaults and 24/7 monitoring provide peace of mind for investors.
- Ease of Access: Investors can buy, sell, and store gold through banks, dealers, or online platforms, with options for both large and small investments.
Global Gold Trends: How Does Singapore Compare?
Singapore’s gold investment boom is part of a broader global trend. In the second quarter of 2025, worldwide bar and coin investment grew 11% year-on-year to 306.8 tonnes. Chinese investors led the way with 115 tonnes, followed by India (46 tonnes) and Europe (28 tonnes, more than double the previous year). In contrast, U.S. demand for bars and coins fell by half to just 9 tonnes.
Gold-backed ETFs (exchange-traded funds) also saw record inflows, with global ETF demand reaching 397 tonnes in the first half of 2025—the highest since 2020. Central bank purchases, while down 21% year-on-year to 166.5 tonnes in Q2, remain a key pillar of demand. The World Gold Council expects central banks to continue adding gold to their reserves, driven by the need for diversification and risk management.
Overall, total gold demand (including over-the-counter transactions) reached 1,249 tonnes in Q2, a 3% increase from the previous year. The annualized gold price stood at US$3,280.4 per ounce during the quarter, reflecting the high-price environment that is both fueling investment and curbing jewelry demand.
Gold Prices: Record Highs and Bullish Forecasts
Gold prices have shattered records in 2025, peaking at US$3,500 per ounce in April before stabilizing around US$3,350. Analysts at J.P. Morgan forecast that gold will average US$3,675 per ounce by the fourth quarter of 2025 and could approach US$4,000 by mid-2026. Some even speculate that prices could reach US$5,000 if current trends persist.
Several factors are driving these bullish forecasts:
- Geopolitical Risks: Ongoing tensions, especially between major economies, are prompting investors and central banks to seek safety in gold.
- Weaker U.S. Dollar: A structurally weaker dollar makes gold more attractive to non-U.S. investors.
- Central Bank Buying: Central banks are expected to purchase around 900 tonnes of gold in 2025, continuing a multi-year trend of reserve diversification.
- ETF and Retail Demand: Inflows into gold ETFs and increased retail participation are boosting overall demand.
Technical analysts at IG suggest that after consolidating around the US$3,000 mark, gold could target US$4,000 in 2025 if the bull market remains strong. However, they caution that markets are unpredictable and trading carries risks.
Jewelry Demand Slumps as Investment Soars
While gold investment is booming, jewelry demand has slumped both in Singapore and globally. In Singapore, jewelry consumption fell 8% to 1.5 tonnes in Q2, and by 20% to 1.7 tonnes in Q1. This decline is attributed to record-high gold prices, which have made jewelry less affordable for many consumers. Globally, jewelry demand dropped 14% year-on-year, nearing lows last seen during the Covid-19 pandemic. In China and India—the world’s largest gold jewelry markets—demand fell 20% and 17% respectively in Q2.
Despite the drop in volume, the value of the global jewelry market has increased, reaching US$36 billion in Q2, thanks to elevated gold prices. In Singapore, jewelry is also subject to Goods and Services Tax (GST), making investment-grade bullion more attractive for those seeking to maximize value.
Singapore’s Gold Market: Infrastructure, Regulation, and Accessibility
Singapore’s rise as a gold investment hub is underpinned by a combination of favorable policies, robust infrastructure, and a transparent market environment. Since 2012, gold bars with a minimum purity of 99.5% are exempt from sales tax, export tax, and capital gains tax. This makes Singapore especially attractive for long-term investors and international clients seeking to store wealth securely.
Investors can choose from a range of reputable dealers and platforms, including BullionStar, GoldBroker.com, and BullionVault, all of which offer secure storage, online monitoring, and flexible purchasing options. Banks like UOB and OCBC provide gold savings accounts and physical bullion trading, with recent policy changes requiring account holders to sell gold back to the bank only if they are current or savings account holders as of March 2025.
Transaction costs, such as trading spreads and storage fees, are generally low, ranging from 0.09% to 0.12% depending on the provider. Minimum investment limits are modest, and fractional gold products allow even small investors to participate in the market.
Regional and Global Implications
Singapore’s gold investment boom is part of a wider trend across Southeast Asia and the world. In Q2 2025, Indonesia, Malaysia, and Thailand all posted double-digit growth in gold investment, while Vietnam saw a 20% decline due to local currency depreciation and higher premiums. Globally, central banks have entered their 16th consecutive year of net gold buying, with holdings now accounting for nearly 20% of official reserves, up from 15% at the end of 2023.
The Asia Gold Conference, held annually in Singapore, reflects the city-state’s growing role as a regional hub for precious metals investment. The event brings together investors, industry leaders, and policymakers to discuss trends, opportunities, and challenges in the gold market, further cementing Singapore’s status as the “Geneva of the East.”
Risks and Considerations for Gold Investors
While gold is widely regarded as a safe-haven asset, it is not without risks. Physical gold storage involves higher transaction and security costs, making it less attractive for short-term investors. Price volatility can also impact returns, especially for those who buy at market peaks. Additionally, while Singapore offers a secure environment, investors should always choose reputable dealers and understand the terms of storage and resale.
For those considering gold as part of their investment portfolio, experts recommend a balanced approach, using gold to diversify risk rather than as a sole investment. As with any asset, due diligence and a clear understanding of market dynamics are essential.
In Summary
- Singapore’s gold investment surged 37% year-on-year to 2.2 tonnes in Q2 2025, just below the record 2.5 tonnes in Q1.
- Demand is driven by safe-haven appeal, easier access, and Singapore’s status as a secure gold hub.
- Jewelry demand has fallen due to high prices, but the overall value of the gold market has increased.
- Global gold prices hit record highs, with forecasts suggesting further gains into 2026.
- Central banks and retail investors are key drivers of demand, with Singapore attracting both local and international buyers.
- Singapore’s favorable tax policies, robust regulation, and advanced infrastructure make it a leading destination for gold investment and storage.
- Experts advise a balanced approach to gold investing, considering both opportunities and risks.
