Gold News

Singapore Gold Storage Opened by Another Bank

UBS follows Deutsche Bank and peer-to-peer bullion exchange BullionVault with Singapore custody...
SWISS investment and bullion bank UBS has begun offering Singapore gold storage to its wealth-management clients in both the city state and Hong Kong.
Fellow gold market-maker Deutsche Bank last month opened Singapore gold storage for its clients, leasing custody space in the same Singapore Freeport facilities.
BullionVault – the physical precious metals exchange for peer-to-peer bullion trading online – extended its range of custody locations to Singapore gold trading and storage in May.
Launched in 2005, BullionVault is now " the world's biggest online bullion market" according to Bloomberg. It uses non-bank custody specialists Brinks to store gold and silver for its users in Singapore.
"Notwithstanding the drop in gold prices," the newswire quotes UBS' Singapore and Malaysia region wealth management chief Peter Kok, "we are still receiving queries on the offering from clients who are keen to reap the benefits of asset and geographical diversification."
Here in London, however, UBS strategist Stephen Deo yesterday advised clients to cut gold and raise stock-market positions because the US Federal Reserve looks likely to end its quantitative easing program.
Already tax-free inside the Freeport facilities, gold bullion was removed entirely from Singapore's 7% General Sales Tax in late 2012. Swiss refinery Metalor plans to complete and open a new plant in the city later this year, having cast its first Singapore gold kilobar in June.
"Right now," said Metalor CEO Scott Morrison, "we can’t keep up with the demand in terms of investors in Asia purchasing gold."
Singapore gold dealers sit between the world's two heaviest consumer markets for the precious metal, India and China.
"We have recognised for some time the ever-growing demand for gold among Asian clients and the demand for gold custody services in Asia," says UBS' Kok.

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