Can Hong Kong outshine Singapore as central banks rethink gold custody amid global risks?
As the Netherlands moved gold out of the US and Canada over geopolitical concerns, attention is turning to whether Hong Kong can capitalise on central banks rethinking where they keep their bullion. The city faces competition from Singapore, which is expected to launch central bank gold-vaulting services in October as part of efforts to cement its status as a gold trading hub in Asia. Where…
The article discusses the potential for Hong Kong to overtake Singapore as a central bank gold custody hub amid growing concerns over global risks. Wall Street veteran Iggy Ioppe highlights three key factors that influence where central banks store their gold: legal certainty, political neutrality, and the ability to access the metal in times of crisis.
Hong Kong's legal framework and deep market are seen as advantageous for reserve managers, while Singapore is set to launch its own central bank gold-vaulting services in October. However, Ioppe emphasizes that a "real gold hub isn't a vault, it's a financing rail," referring to the ability to lease, collateralise, and mobilise the metal around the clock.
Hong Kong is actively promoting its gold storage, clearing, and risk management services, with plans to expand vault storage capacity to 2,000 tonnes within three years.
Brief written by urgent.news from SCMP Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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