Why Singapore is #1 Place for Buying and Storing Gold Bullion
In recent years, Singapore has evolved from one of the safest places to buy and store gold to THE place for businesspeople and investors to protect their assets with one of the most powerful asset protection tools. For Singapore, being part of Asia has a lot to do with it. Namely, gold is highly valued throughout Asia not only from a financial but also from a cultural standpoint. Since Singapore is undoubtedly Asia’s hub for storing precious metals, it’s only natural that wealth builders from around the globe choose it as a place to store their gold.
Let’s take a look at a detailed overview of what makes Singapore the go-to place for buying and storing gold, or more specifically, gold bullion.
Singapore is well connected to the region and the rest of the world
Singapore has an excellent geographic position, which makes it accessible from virtually anywhere in the world. Additionally, there are direct flights to and from many countries in the world, with highly affordable flights to and from the countries in the region.
This is especially important for gold bullion dealers who have formed partnerships with reputable mints and refineries, such as Central Bank mints or mints approved by London Bullion Market Association (LBMA). The unobstructed flow of precious metals, including investment grade gold bullion, is vital to their successful business operation.
Corruption is among the lowest in the world
In the world pervaded with corruption on multiple levels, it’s reassuring to know that, as a high net worth investor or businessperson, there is a place where trust and technology form the basis for the majority of financial operations. Namely, Singapore is ranked #7 on the Corruption Perception Index by Transparency International, which is higher than the Netherlands, Canada, Germany and the UK, to mention but a few.
Moreover, Singaporean government is working tenaciously on establishing Singapore as a modern capital of finance, based on technological innovations and trustworthiness of Singapore-based fintech companies.
Taxation structure is designed to encourage gold investment
In their efforts to consolidate Singapore’s position as Asia’s precious metals trading and storage hub, Singaporean government has passed a set of regulations that allow foreign investors and wealth builders to purchase and store their gold bullion in Singapore. More specifically, certain investment grade gold, silver and platinum can be both imported and sold in Singapore GST free, that is – tax free. Since there are no capitals gains taxes in Singapore, GST stands for Good and Services Tax, which is similar to VAT in Europe. Tax-free bullion is referred to as ‘’Investment Precious Metals’’ or ‘’IPM’’, while taxable bullion is denoted as ‘’non-IPM’’.
Furthermore, the lack of licensing requirements for import/export of precious metals enables the free flow of IPMs through Singapore.
Singapore has outstanding physical infrastructure to meet the demand for gold bullion
Various initiatives were undertaken to meet the growing demand for gold bullion trade and storage. First of all, Metalor Singapore officially started its operation in 2013, becoming one of the most significant gold refineries and gold bullion manufacturing plants in the world. Singapore was chosen by Metalor Technology as a place to construct its refinery, only confirming Singapore’s status as a regional and global leader in precious metals trading.
Furthermore, with the establishment of vaults such as the Singapore Freeport in 2010, modeled after the Swiss Freeport, and Silver Bullion’s The Safe House, Asia got cutting-edge facilities that are as good or even better than any other in the world. Singapore Freeport is located next to Singapore’s Changi International Airport, with direct access to the airport runway.
Singapore’s fintech companies are champions of innovation
The synthesis of technology and trust is at the core of the development of new forms of financial services in Singapore. Technological innovations are encouraged and officially recognized by Monetary Authority of Singapore (MAS) through annual MAS Fintech Awards. The finalists and winners are companies which are at the forefront of advanced financial services development, including gold bullion trade.
As one of the finalists for the MAS Fintech Awards in 2016, Silver Bullion has been officially recognized as a leader in the field. Through Silver Bullion’s secured online peer-to-peer (P2P) lending platform, customers can use their bullion as collateral, with each loan being secured by 200% of borrower’s bullion. As opposed to unsecured platforms, Silver Bullion’s P2P platform enables the lenders to have their capital back with interest from the sale of the bullion collateral in case the value of the collateral falls to 110%. In this case, the loan is automatically closed.
Singapore is home to cutting-edge gold bullion storage facilities
Finally, Singapore boasts tailor-made logistical solutions for gold bullion storage. The Safe House, a subsidiary of Silver Bullion, is a state-of-the-art secured vault facility protected by armed auxiliary police. Among many safety measures, The Safe House enables their clients to track their bullion. As a result, clients can fully exercise their right to sole legal ownership of their bullion, as stated by the Singapore law. As such, the primary role of The Safe House is that of a renter of storage space. Additionally, their clients, who are legal title owners of their silver and gold bullion under the Singapore law, are able to audit or withdraw their property if they wish to do so.