Singapore launches gold vaulting service for central banks

Singapore has launched a gold vaulting service for overseas central banks and official institutions, seeking to capitalise on global demand to diversify storage of bullion reserves.

Gold will be stored in the city-state’s national currency vault, which has capacity for as much as 500 tonnes, with room to expand as demand grows, the Monetary Authority of Singapore said in a statement on Tuesday.

“Singapore does not aim to replace other gold centres and gold vaulting services,” MAS chairman Gan Kim Yong, who is also the country’s deputy prime minister, told reporters. “With the growing demand for gold as a reserve asset, I think central banks are also looking for alternatives, looking for more options to strengthen their resilience in terms of their gold reserves,” he said.

MAS will also offer gold custody accounts to select Singapore-based bullion banks with expertise in providing the services, the central bank said in the statement.

The latest push by Singapore comes amid heightened demand for gold from both institutional investors and central banks, which have accumulated the metal at a rapid pace in recent years as geopolitical tensions and concerns over government debt boost its appeal as a haven and a way to diversify investment portfolios.