According to bullion dealers, demand for precious metals like gold and silver is rising in Singapore. It has roughly doubled in the first half of this year compared to the same period in 2013. This is due to the recent weakness in prices as well as tax-exemption in Singapore. Precious metals investors overseas are also looking more to Singapore as a haven to store their hoard.
Singapore aims to have a “gold-standard” environment for buying, selling and storing investment-grade precious metals — typically gold or silver products of close to 100 per cent purity.
Gold premiums jumped to high levels in the last months due to short supplies amid firm demand.
Clearly, investors in Singapore are not as easily fooled compared to those who get all of their news, correction propaganda from CNBC. It’s a positive sign that the masses are once again realizing the safe haven that is precious metals.
US dollar’s recent strength has prompted investors to shift from gold to currency, leading to a dip in prices of precious metals. But prices will rebound. The fundamentals for both gold and silver are as rock solid as ever.