According to recent researches and studies, interest in gold is shifting more and more to the East; from North America and Europe to the Middle East and Asia.
Through this cut-throat competition in dominating the business and financial traffic, the name of a relatively “small” Asian port arises; Singapore. It’s simply the second-busiest port in the world, and its economy is trade-oriented one focused on re-exporting, just like its rival, Hong Kong.
Being a market economy where prices determined by a free price system, just next to the Asian giant, China, and only the pacific separates it from the ports of North America, it might become the Western World favorite trade partner to trade with Asia. Therefore, it’s not a surprise at all for Singapore to be a major center of finance and trade in the world, especially gold trades.
But why should gold traders specifically have any interest in Singapore? Why should they care about it? Here are 5 reasons why gold traders should keep news from Singapore in their checklist.
- It already controls roughly 2% of the world’s demand for gold, with the potential to rise to 15% in the next 10 years. That share is already expanding as more western gold traders move towards the East; Shanghai, Hong Kong, Mumbai and Singapore.
- A low tax on gold and silver, as the government is seeking to have a footing in the global bullion market, competing with London, New York and Zurich. The way Asian markets are prospecting, it’s possible and very likely for Singapore to be another world trade center, stealing some thunder from Europe.
- Easy trading laws and strong currency, coupled with low taxes and security, all these factors attract gold investors. Any investors actually will try Singapore for business, but the security and low-costs of transporting, storing and re-exporting attract gold traders more than others.
- Close proximity to Australia, Papua New Guinea and China, the gold producer and China, India, South-East Asians nations like Philippines, Indonesia and Thailand, the gold consumers. Singapore already established a foothold in Thailand’s gold market.
Still, Hong Kong have established a firm share in the bullion market, but these past few years are changing the world, with the strong rise of Shanghai as competitor, and the outflow of traders from the western market. These circumstances might work well for Singapore.