As gold soars to new highs amid geopolitical and monetary turbulence, Singapore and Hong Kong are intensifying efforts to position themselves as major nodes in the global precious metals trade. Both jurisdictions are expanding infrastructure—vault capacity, refinery services, futures markets—and targeting investors increasingly wary of the traditional Western hubs.

In Singapore, The Reserve, a high-security precious metals facility near Changi Airport, has emerged as a flagship project. The vault is built to hold up to 500 tonnes of gold and 10,000 tonnes of silver, though current utilisation remains modest. Yet storage orders in early 2025 surged, especially from international clients, as wealthy individuals seek stable jurisdictions. Singapore’s appeal is bolstered by its reputation for political neutrality, strong legal frameworks, and seamless integration with wealth and asset services.

Hong Kong, meanwhile, leans on its geographical and economic proximity to mainland China. The city is scaling up its vault infrastructure—plans are underway to expand airport vault capacity from its current limit toward 1,000 tonnes—while promoting gold trading in renminbi and expanding services in certification, clearing, and collateral lending. The London Metal Exchange (LME) recently approved warehouse delivery points in Hong Kong for metals trading, opening the door for refined precious metals to become deliverable instruments to China.

Policy initiatives underpin the ambition. Hong Kong’s leadership has publicly called for development of a full gold ecosystem—storage, trading, clearing, and support services—to reclaim its standing amid regional competition. Singapore, for its part, already benefits from tax structures favorable to bullion trading and a well-developed logistics base.

However, both hubs face challenges. Hong Kong must navigate political uncertainties in the region and reassure global traders of regulatory continuity. Singapore must attract sufficient liquidity and institutional participation to rival entrenched centers. Moreover, while China’s gold imports via Hong Kong dropped in August—falling nearly 39 percent from July—Beijing continues to add bullion to its reserves, reflecting complex demand dynamics.

The race between Singapore and Hong Kong marks a broader eastward shift in the gold trade. As record precious metal prices and volatile markets push participants to New benchmarks, Asia’s financial centers are contesting for status not merely as storage locations but as future hubs of liquidity, settlement and benchmarks in precious metals markets.