Singapore Gold Investment Jumps 37% as Buyers Seek Safety Despite Record Prices

Singapore buys more investment gold as jewellery demand falls

Singapore's investment in gold bars and coins rose 37% from a year earlier to 2.2 tonnes in the second quarter of 2025, according to the World Gold Council. The increase came despite record gold prices and followed a historic high of 2.5 tonnes in the first quarter, showing how strongly investors have sought protection from economic and political uncertainty.

Jewellery buyers moved in the opposite direction. Singapore's gold jewellery consumption fell 8% to 1.5 tonnes in the second quarter as higher prices squeezed spending. The contrast captures the forces shaping the market: rising prices are drawing people towards gold as an investment while making necklaces, bracelets and other jewellery harder to afford.

Singapore's experience is part of a wider shift across Southeast Asia. Indonesia, Malaysia and Thailand also recorded growth of more than 10% in purchases of gold bars and coins during the quarter. Worldwide, investment in these products increased 11% to 306.8 tonnes.

Singapore's 37% increase was therefore more than three times the global growth rate. Its second quarter purchases were still 0.3 tonnes below the first quarter record, showing that investment remained strong even after the initial surge of 2025.

As of August 4, 2025, the city's gold market brings together several kinds of buyers: ordinary bank customers purchasing small amounts, investors using digital products and wealthy international clients moving substantial holdings into private vaults. Easier access, favourable tax treatment and Singapore's reputation for security are helping connect those different sources of demand.

Why bank customers are turning to gold

OCBC said the number of customers investing in gold more than doubled in April 2025 compared with April 2024. About 90% were retail or personal banking clients, showing that the increase extended beyond the wealthiest investors.

UOB recorded an 85% increase in purchases through gold savings accounts and a 64% rise in physical gold trading volume during the first four months of 2025. Gold savings accounts give customers exposure to gold through a bank account, while physical trading involves buying or selling the metal itself.

Gold dealers have also seen stronger sales among people with very large fortunes. Some clients are buying S$60 million to S$70 million, equivalent to US$46 million to US$54 million, of physical gold in a single purchase.

Trade tensions, fears about inflation and sharp movements in financial markets help explain the interest. Investors are looking for somewhere to hold part of their wealth when the outlook for currencies, shares or the wider economy feels uncertain.

Singapore's position as a gold trading and storage centre adds another attraction. Favourable tax policies, regulation and a reputation for security appeal both to residents buying gold and international investors choosing where to keep it.

Small purchases open the market to more investors

Banks and financial technology platforms have made gold easier to buy in small amounts. Fractional investing allows purchases ranging from as little as 0.1 gram to 5 grams, reducing the money needed to begin.

Younger investors and people buying gold for the first time are among those using these options. Digital platforms and exchange traded funds backed by gold are also gaining popularity among Singaporeans aged 25 to 40 who are comfortable managing investments online.

An exchange traded fund, or ETF, allows investors to buy shares in a fund linked to gold instead of arranging personal storage of bars or coins. The choice between a fund, a bank account and physical metal gives buyers different ways to participate in the same market.

What investors want gold to do

Gold attracts buyers because it is widely regarded as a store of value during periods of inflation, weakening currencies and financial turmoil. A safe haven is an asset people turn to when they are worried about losses elsewhere.

Investors also value gold's liquidity, meaning the ability to buy it, sell it and turn it into cash. Its prices can move differently from shares and bonds, which gives it a role in diversification: spreading money across different assets to reduce dependence on any single investment.

Shaokai Fan, the World Gold Council's head of Asia-Pacific excluding China and global head of central banks, described the forces supporting demand:

Geopolitical tensions, market volatility, and macroeconomic uncertainty will continue to drive investment demand in gold.

Fan also said central banks were expected to keep adding gold to their reserves over the long term. Their purchases reinforce gold's role as a strategic asset, held to help manage uncertainty and diversify national reserves.

Gold's appeal therefore reaches from individuals buying fractions of a gram to institutions managing national wealth. Both are responding to uncertainty, although their purchase sizes, storage arrangements and reasons for holding the metal differ.

Private vaults attract wealth from abroad

The Reserve, a private vault near Changi Airport, illustrates Singapore's appeal as a place to store precious metals. Gold and silver storage orders rose 88% from a year earlier, while sales of precious metals bars increased 200%.

Most new orders came from outside Singapore. Wealthy clients were seeking protection from global instability and possible banking crises, contributing to the city's reputation as the Geneva of the East for gold storage.

The increase in private vault demand reflects a different part of the market from purchases by local bank customers. International clients are choosing Singapore as a storage location as well as a place to conduct transactions.

Singapore's attraction rests on its stable business environment, security and access to services. Advanced vaults and monitoring around the clock provide protection for stored metal, while banks, dealers and online platforms allow customers to buy, sell and store holdings.

Government standards for dealers and storage facilities, together with transparency and regulation, support confidence in those arrangements. Investors can choose services suited to small purchases or substantial holdings, giving the market a broad customer base.

Tax treatment and trading terms shape the choice

Since 2012, Singapore has offered tax advantages for investment gold. Gold bars with a minimum purity of 99.5% are exempt from sales tax, export tax and capital gains tax under the arrangements described for the market.

Jewellery is subject to Goods and Services Tax, or GST. That difference makes qualifying investment bullion more attractive to people whose main aim is to hold gold for its financial value.

BullionStar, GoldBroker.com and BullionVault are among the dealers and platforms offering secure storage, online monitoring and flexible purchasing options. UOB and OCBC also provide gold savings accounts and physical bullion trading.

Bank account conditions matter when customers want to sell. Policy changes effective from March 2025 require customers selling gold back to the bank to hold a current or savings account.

Trading spreads and storage fees are also part of the cost. A spread is the difference between the price charged to buy gold and the price offered to sell it back. Transaction and storage charges described for providers range from 0.09% to 0.12%, depending on the service.

Modest minimum investment amounts and fractional products help small investors participate. Buyers still need to understand the particular fees, storage arrangements and resale conditions attached to the product they choose.

Global demand grows, with sharp regional differences

Worldwide demand for gold, including transactions conducted directly between parties outside exchanges, reached 1,249 tonnes in the second quarter of 2025. That was 3% higher than a year earlier. These direct transactions are commonly described as over the counter trading.

China led global investment in bars and coins with purchases of 115 tonnes. India followed with 46 tonnes, while Europe bought 28 tonnes, more than twice its total a year earlier. Demand in the United States moved the other way, falling by half to 9 tonnes.

Vietnam also diverged from the growth seen in Singapore, Indonesia, Malaysia and Thailand. Vietnamese gold investment declined 20%, with local currency depreciation and higher premiums weighing on purchases. A premium is the extra amount buyers pay above the underlying market price of gold.

Gold ETFs attracted 397 tonnes of demand worldwide in the first half of 2025, the highest total for that period since 2020. The inflows show how investment demand is reaching the market through funds as well as physical bars and coins.

Central banks bought 166.5 tonnes in the second quarter, down 21% from a year earlier. Even with that decline, their purchases remained an important source of demand.

Central banks have entered their 16th consecutive year of net gold buying, meaning that together they are buying more than they sell. Gold now accounts for nearly 20% of official reserves, compared with 15% at the end of 2023. Reserve diversification and risk management remain reasons for holding it.

Record prices bring ambitious forecasts

Gold reached US$3,500 an ounce in April 2025 before settling around US$3,350. The annualized gold price figure given for the second quarter was US$3,280.4 an ounce, reflecting the expensive market facing both investors and jewellery buyers.

J.P. Morgan's gold price forecast put the average at US$3,675 an ounce in the fourth quarter of 2025 and suggested prices could approach US$4,000 by the middle of 2026. More speculative projections put US$5,000 within reach if the forces supporting demand persist.

Geopolitical tensions, especially between major economies, are one reason behind the optimistic forecasts. A structurally weaker US dollar is another, because gold becomes more attractive to buyers using other currencies when the dollar weakens.

Central banks are expected to purchase around 900 tonnes in 2025, continuing several years of diversification into gold. Retail buying and inflows into ETFs provide further support for demand.

IG's technical gold outlook suggested that, after a period of trading around US$3,000, the price could target US$4,000 in 2025 if the rising market remained strong. Technical analysis examines price patterns to assess possible future movements. IG also cautioned that markets are unpredictable and trading carries risks.

The dates behind the market's recent development and forecasts help separate recorded events from expectations:

• 2012: Singapore introduced the tax arrangements described for qualifying investment gold bars.
• End of 2023: Gold accounted for 15% of official reserves, compared with nearly 20% in 2025.
• First quarter of 2025: Singapore's bar and coin investment reached a record 2.5 tonnes.
• March 2025: Changes to bank conditions required a current or savings account for customers selling gold back.
• April 2025: Gold reached US$3,500 an ounce, and OCBC's number of gold investors more than doubled from a year earlier.
• Second quarter of 2025: Singapore's bar and coin investment reached 2.2 tonnes, up 37% from a year earlier.
• Fourth quarter of 2025 and middle of 2026: J.P. Morgan's forecasts pointed to an average of US$3,675 and a possible approach towards US$4,000, respectively.

Jewellery buyers face the cost of the rally

Singapore's jewellery consumption fell 20% to 1.7 tonnes in the first quarter of 2025, followed by the 8% decline to 1.5 tonnes in the second quarter. Record prices have made gold jewellery less affordable, even as investment buying has expanded.

Global jewellery demand declined 14% from a year earlier in the second quarter, approaching levels last seen during the COVID-19 pandemic. China and India, the world's largest markets for gold jewellery, recorded declines of 20% and 17%, respectively.

The value of the global jewellery market nevertheless rose to US$36 billion during the quarter. Buyers were purchasing less gold by weight, but higher prices increased the amount spent on it.

Singapore's GST on jewellery adds to the difference between an ornamental purchase and qualifying investment bullion. For consumers, the rally means a higher bill for jewellery; for investors, the same price rise has helped strengthen interest in gold as a store of wealth.

Singapore's expanding role comes with costs and risks

Singapore's combination of tax policies, storage facilities and financial services supports its position as a regional gold centre. The Asia Gold Conference, held annually in Singapore, brings investors, industry leaders and policymakers together to discuss market trends, opportunities and challenges.

Local retail demand and international storage business are developing alongside each other. Small digital purchases make the market accessible to new investors, while private vaults serve clients moving large amounts of wealth across borders.

Physical gold still involves transaction, storage and security costs. Those expenses can make it less attractive for people who expect to sell again quickly. Price swings can also reduce returns, especially for buyers entering after a sharp rise.

Investors need to choose reputable dealers and understand how their gold will be stored and sold. The charges attached to a bank account, an ETF and a physical holding can affect the result differently.

A balanced approach uses gold as one part of a portfolio rather than the only investment. The market's rise in 2025 has increased its attraction, while the same high prices have made careful attention to costs, purchase terms and price volatility more pressing.

Key Points

• Singapore's gold bar and coin investment rose 37% to 2.2 tonnes in the second quarter of 2025, following a record 2.5 tonnes in the first quarter.
• OCBC and UOB recorded strong increases in gold activity, while fractional purchases widened access for smaller investors.
• Private vaults attracted international wealth, with The Reserve recording an 88% increase in gold and silver storage orders.
• Worldwide bar and coin investment rose 11% to 306.8 tonnes, while gold ETF demand reached 397 tonnes in the first half.
• Singapore's jewellery consumption fell 8% to 1.5 tonnes in the second quarter as high prices constrained spending.
• Gold reached US$3,500 an ounce in April. Forecasts for further gains came with warnings about unpredictable prices and trading risks.
• Tax advantages and secure storage support Singapore's gold market, while fees, resale terms and volatility affect investor returns.