Singapore gold vaulting service aims to boost bullion flows
ITF Team3 min read
Singapore launched a 500‑ton gold vaulting service for central banks on 11/11/2026, adding tax exemptions to attract bullion flows amid Asian market shift.
Key takeaways
- Singapore’s Monetary Authority launched a gold vaulting service with 500 metric tons capacity on 11/11/2026.
- Tax exemptions will cover wholesale services such as refining, recasting, testing and broking.
- London’s vaults held about 9,850 metric tons at the end of October 2026, highlighting the scale gap.
- Hong Kong is expanding its own gold storage as a rival hub for China’s market.
On 11 November 2026, the Monetary Authority of Singapore (MAS) introduced a new gold vaulting service designed for foreign central banks and sovereign entities. The facility, with an initial capacity of 500 metric tons, is part of a broader push to position Singapore as a competitive bullion hub alongside London and Switzerland.
The launch coincides with plans to grant tax exemptions for wholesale gold‑related activities, including vaulting, refining, recasting, testing and broking. By removing fiscal barriers, Singapore hopes to attract a steady stream of gold flows that can be mobilised for trading rather than merely stored.
Why the service matters for the gold market
Gold trading has been gradually re‑orienting toward Asia, driven by rising regional demand and the expansion of local refineries. Singapore’s strategic location, political stability and world‑class legal framework make it an attractive alternative to traditional European storage centres.
Central banks are increasingly reviewing where they keep their reserves amid geopolitical tensions. According to the World Gold Council, several countries have diversified storage locations over the past year, creating a market for sovereign vaulting services that offer both security and proximity to Asian markets.
Challenges from established hubs
London remains the dominant over‑the‑counter gold market, with vault holdings of roughly 9,850 metric tons at the end of October 2026. This scale advantage translates into deep liquidity and a robust trading ecosystem that Singapore currently lacks.
Hong Kong, another Asian contender, is leveraging its closeness to China—the world’s largest gold market—to expand its own storage and clearing infrastructure. Analysts such as Juerg Kiener of Swiss Asia Capital argue that Singapore is “very late to the party” and may struggle to compete directly with Hong Kong for China‑linked flows.
Read also: Gold extends gains beyond $4,050 as Fed hike bets lift USD
Potential niche and complementary roles
Despite the competition, experts see room for Singapore to carve out a niche in serving financial institutions that already operate within its banking ecosystem. The new vault will be run by MAS, offering a sovereign custodian option that is rare in the market.
Metals Focus’s Nikolas Kavalis notes that while storage alone does not create a full bullion market, the presence of a central‑bank vault could seed liquidity if stored gold is made available for transactions. This could gradually build a trading environment that complements, rather than directly challenges, London and Hong Kong.
What traders should monitor
The next milestone is the launch of Singapore’s physical gold clearing system, slated for the first quarter of 2027. Successful integration of clearing and settlement will be a key test of the city‑state’s ability to support high‑frequency bullion trades.
Market participants will also watch the uptake of the tax‑exempt services and the volume of gold actually deposited by foreign central banks. Early indicators such as the amount of gold moved into the 500‑ton facility and any subsequent increase in OTC transaction volumes will signal whether Singapore can break the liquidity‑volume chicken‑and‑egg loop.
- 500 metric tons initial vault capacity (MAS, 11/11/2026)
- Tax exemptions for wholesale gold services announced alongside the vault
- London vault holdings: ~9,850 metric tons (Oct 2026)
- Hong Kong’s parallel expansion targeting China‑linked flows
- Gold clearing system expected Q1 2027
Frequently asked questions
What is the capacity of Singapore’s new gold vaulting service?
The Monetary Authority of Singapore launched a vault with an initial capacity of 500 metric tons on 11 November 2026, aimed at foreign central banks and sovereign entities.
How does Singapore plan to make its gold services more attractive?
Singapore will provide tax exemptions for wholesale gold activities such as vaulting, refining, recasting, testing and broking, and it is building a physical gold clearing system expected to start operations in the first quarter of 2027.
Official data sources
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This article is compiled from international market news for information only. It is not investment advice.