Why Singapore Shines Bright For Offshore Gold Storage
22 June 2023
Singapore has long been recognised as an opportune hub for asset storage and long-term business growth. Its strategic location and favourable island-wide developments make it the perfect place for investors to hold valuables in reserve safely. Read on to learn the economic and political benefits investors can face when utilising the lion city for offshore gold storage, specifically when engaging The Reserve’s precious metals vault in Singapore.
1. Political stability
Singapore boasts a robust military and grounded political stability, committed to the rule of law. As The Reserve is located in this cosmopolitan city, gold storage here is secured within a safe and reliable environment owing to the country’s strong legal framework and integrity-based government. Those looking to store assets can rest assured that their gold will not be mishandled or misappropriated. Instead, maximum security will be upheld by us, with holdings stored in quality and well-developed infrastructures designed solely to maintain complete security and peace of mind for investors. This helps mitigate risk management when investing in precious metals.
2. Strong financial infrastructure
Singapore boasts a robust and well-developed financial infrastructure that has garnered global recognition. Its strong financial system is built on a foundation of stability, transparency, and efficiency, making it an attractive destination for businesses and investors alike. The country's monetary policy is guided by the Monetary Authority of Singapore (MAS), known for its prudent management and forward-thinking approach.
Since 2021, the MAS has been increasing Singapore's gold reserves at a rapid pace, preferring to hold more gold than U.S. dollars. In Q1 2023, Singapore bought the most gold than any other country in the world.
Singapore's banks are renowned for their resilience and adherence to stringent regulations, ensuring the safety and security of deposits and transactions. Moreover, the nation's strategic location as a regional financial hub, coupled with its open and competitive business environment, has attracted a diverse range of financial institutions and investment opportunities.
With world-class technological advancements and a deep talent pool of finance professionals, Singapore's financial infrastructure continues to play a pivotal role in fostering economic growth and financial prosperity both regionally and globally.
3. Economic stability
Singapore has zero net debt, indicating its strong economic stability and fiscal responsibility. It is a net creditor country, not a debtor. Assets will be safe from economic volatility like recessions and financial crises, and the country’s stable currency hugely benefits investors storing gold due to a strengthened and consistent purchasing power.
The risk of currency devaluation is minimised in Singapore through its sound financial positioning, with the Singapore dollar (SGD) having maintained its strength and renown for decades. Singapore has mitigated the risks of inflation and currency devaluation well, providing investors with a long-term hub for storing and preserving their gold for years to come.
4. Government investments
Funds borrowed from the Singapore government are, by law, used for investment, not spending. This allows for a strategic allocation of funds, keeping the interests of the public in mind with every move. Investments in infrastructure developments boost the construction of transportation channels such as roads, bridges, ports, and airports. These facilitate trade and commerce and improve transportation and logistics efficiency, which drive the country’s global competitive standing.
Infrastructure, technology, and innovation investments all come together to build Singapore as a hub for opportune business dealings and asset storage. It is a preferred destination for foreign direct investment, and its forward-looking investments have solidified its competitive standing in the international arena.
5. Tax advantages
Singapore boasts favourable tax advantages for those pursuing offshore gold storage within the country. The country exempts investment-grade gold bars and coins from the Goods and Services Tax (GST). These are called Investment Precious Metals. As such, investors do not need to pay any GST when purchasing or storing gold bullion that meets the designated criteria.
This enhances the cost-efficiency of gold storage for investors, eliminating additional small costs that typically accumulate if the GST is present, maximising investment gains through smooth price appreciations.
Singapore’s unique combination of political and economic favourability for offshore gold storage proves highly beneficial for investors. The long-term growth potential here is unmatched, and the country leverages its commitment to security and reliability to maintain its premiere positioning for this asset storage.
The Reserve is built to house precious metals and other assets, with an emphasis on a gold and silver vault in Singapore, having care and quality in mind. We know how precious your assets are, and we offer services that aid you in effectively securing them.