As US President Trump wielded the "tariff stick" indiscriminately and economic and geopolitical uncertainties continued to disrupt the market, an interesting phenomenon emerged: super-rich individuals were increasingly turning their attention to the safer option of physical gold, transferring it overseas, with Singapore emerging as a popular destination.
The reason is simple: Singapore is home to "The Reserve," a colossal vault standing at 32 meters tall.
According to Gregor Gregersen, the founder of "The Reserve,"from the beginning of this year until April, the precious metals storage facility received 88% more orders for gold and silver compared to the same period in 2024.Meanwhile, data provided by the company also showed thatsales of gold and silver bars soared by 200% YoY during the same period.
Industry observers believe that this trend is driven by growing unease. Gregersen stated, "Many very high-net-worth clients are concerned about tariffs, changes in the world, and the possibility of geopolitical instability. Today, storing physical metals in a safe jurisdiction like Singapore is becoming a major trend."
He added that90% of the new orders came from outside Singapore.
It is understood that "The Reserve" spans 180,000 square feet, boasting not only a vast scale but also integrating high-tech security systems, capable of accommodating a vast quantity of precious metals, including 10,000 mt of silver and 500 mt of gold. Some commentators have noted that the storage capacity of this six-story vault is impressive enough to shake the entire financial world.
Physical Gold Becomes a "Hot Commodity"
In recent months, due to geopolitical tensions, gold prices have surged rapidly, hitting record highs. Although they have pulled back somewhat after the easing of Sino-US trade frictions, some market observers still believe thatgold prices could climb to $5,000 per ounce next year.
Gregersen said that wealthy individuals are increasingly choosing physical gold bars over "paper gold trading" because they do not want to bear significant price risks. While storing and holding physical gold is not entirely free from price risks, it limits certain risks associated with "paper gold."
Jonathan Rose, CEO of Genesis Gold Group, a gold dealer, said that an increasing number of clients investing in gold are requesting to have physical gold delivered to them. He estimated that the proportion of clients insisting on holding physical gold has surged from 20% in past years to 70%.
Analysts point out that physical gold has unique advantages compared to other investment options. It has no counterparty risk, allowing investors to directly own and control their gold assets. Additionally, physical gold offers a high degree of privacy, meeting the wealth protection needs of high-net-worth individuals.
Nicky Shiels, Head of Research and Metal Strategy at MKS PAMP, a precious metals refining and trading company, stated that the Silicon Valley Bank crisis that erupted in 2023 also prompted investors to prefer physical ownership or safe allocation of specific gold bars, rather than relying on paper claims or merely holding shares in a pooled reserve—shares that could be at risk if the bank fails.
John Reade, Chief Market Strategist at the World Gold Council, similarly pointed out that this is particularly true for those concerned about the health of the global financial system.
"Some holders of physical precious metals are cautious about storing gold within the banking system, even in allocated form, and therefore prefer to store it with entities outside the banking system," he added.
