The "Trump Turmoil" has triggered a rush to buy physical gold, and global billionaires are focusing on Singapore's vaults!
As US President Trump randomly wields the "tariff stick," economic and geopolitical uncertainties continue to disrupt the market.
An interesting phenomenon has emerged in the market: Super-rich individuals have turned their attention to the more secure physical gold and are transferring it overseas, and Singapore is becoming a popular destination.
The reason is simple: Singapore is home to a 32-meter-tall giant vault-"The Reserve". According to Gregor Gregersen, the founder of "The Reserve", from the beginning of this year to April this year, the precious metal storage facility has received 88% more orders for gold and silver than the same period in 2024.
At the same time, the company's data also shows that the sales of gold and silver bars during the same period have soared 200% year-on-year.
Industry observers believe that the growing sense of unease has driven this trend. Gregersen said, "Many very high-net-worth clients are concerned about tariffs, changes in the world, and the possibility of geopolitical instability. Nowadays, placing physical metals in a safe jurisdiction like Singapore is becoming a major trend."
He also added that 90% of the new orders come from outside Singapore.
It is understood that "The Reserve" covers an area of 180,000 square feet. It is not only large-scale but also equipped with a high-tech security system, capable of accommodating a large amount of precious metals, including 10,000 tons of silver and 500 tons of gold.
Some comments have said that the storage capacity of this six-story-high vault is so strong that it is enough to shock the entire financial community.
Physical gold has become a "hot commodity"
In recent months, due to the tense geopolitical situation, the gold price has risen rapidly and hit a new all-time high.
Although it has fallen back after the trade friction between China and the United States eased, some market observers still believe that the gold price may climb to a high of $5,000 per ounce next year.
Gregersen said that the rich are increasingly choosing physical gold bars rather than "paper gold trading" because they do not want to bear too much price risk. Although storing and holding physical gold is not completely without price risk, it limits some of the risks brought by "paper gold".
Jonathan Rose, the CEO of the gold trader Genesis Gold Group, said that more and more gold-investing clients are asking to have physical gold shipped to them. He estimated that the proportion of clients insisting on holding physical gold has soared from 20% in the past few years to 70%.
Analysts pointed out that compared with other investment methods, physical gold has unique advantages. It has no counter-party risk, and investors can directly own and control their gold assets. In addition, physical gold also has a high degree of privacy, which can meet the needs of high-net-worth individuals for wealth protection.
Nicky Shiels, the head of research and metal strategy at the precious metal refining and trading company MKS Pamp, said that the Silicon Valley Bank crisis in 2023 also prompted investors to prefer physical ownership or safe allocation of specific gold bars rather than relying on paper-based claims or simply holding shares in collective reserves-these shares may be at risk if the bank fails.
John Reade, the chief market strategist of the World Gold Council, also pointed out that this is especially the case for those who are worried about the health of the global financial system. "Some holders of physical precious metals are cautious about storing gold in the banking system, even in the form of allocation, so they prefer to store gold in entities outside the bank," he added.