The rich take tons of gold to this one country — what happened

A new gold rush has gripped the world. Wealthy investors are moving their precious metals to Singapore en masse, and the city-state is rapidly becoming a global gold storage center. Geopolitical instability, economic turmoil, and rising gold prices are prompting the wealthy to seek safe havens for their assets.

CNBC writes that the global economy has been teetering on the brink of recession for a long time. Demand for safe-haven assets is being driven by geopolitical tensions between the United States and China, local conflicts, the financial policies of large banks, and the depreciation of the dollar. Gold has traditionally been one of them.

According to The Reserve, a storage facility near Changi Airport in Singapore, demand for precious metals storage increased by 88% in the first four months of 2025 compared to the same period in 2024. Bullion sales increased by 200%.

"90% of the new orders are coming from outside of Singapore," says The Reserve founder, Gregor Gregersen.

Singapore is a new "golden harbor"

Why Singapore? The country has several significant advantages that make it attractive.

1. It is politically stable, with a government characterized by predictable policies and strict neutrality in foreign affairs.
2. It has a low crime rate and a high level of security.
3. Investors' property is well protected from arbitrary interference thanks to legal protection of assets.
4. Singapore's convenient logistics location makes it a key transit hub for the entire region.

"The idea of putting physical metal in a safe jurisdiction like Singapore with parties they can trust is becoming a big trend nowadays," added Gregersen.

Physical gold vs. paper gold

The demand for gold itself is growing, as is the demand for its physical form. This is due to a lack of trust in financial intermediaries. More and more investors want to own the asset directly instead of depending on banks, brokers, or government policy.

"Rich people do not want to deal with counterparty risks. They choose real assets that they can touch," Gregersen emphasizes.

This also explains the explosive growth in demand for private safes and vaults in countries that offer financial freedom and legal stability.

The market is reacting; gold prices are rising again

Along with the growing demand for physical gold, its price is also rising. In March and April 2025, bullion prices reached record highs. Although there was a slight correction in May due to a temporary reduction in tensions between Washington and Beijing, the long-term trend remains upward.

Some experts predict further growth, even up to $5,000 per ounce by 2026.

Competitors can't keep up

Despite the presence of alternative hubs, such as Dubai or Zurich, Singapore is gaining the most momentum. This is due to its efficiency, effectiveness, and lack of unnecessary bureaucracy.

Analysts are already calling Singapore the "Geneva of the East". It's not just rhetoric; in terms of the number of new clients and the pace at which it is expanding its gold storage infrastructure, Singapore is ahead of all its regional competitors.

As we mentioned, Bitcoin and gold have recently been competing for the title of the most reliable safe-haven asset that protects investors from inflation. Both showed growth at the end of 2024, but changes occurred in 2025. JPMorgan analysts predict that, by the end of this year, Bitcoin will demonstrate superior growth dynamics compared to gold.

As a reminder, we wrote that according to Bloomberg, investments in CS2 skins have yielded 41% per annum — more than traditional assets such as gold (with a much lower Sharpe ratio of 0.12) or even Bitcoin (0.21).