Forget Dubai, here's why the 'Geneva of the East' is now a destination for super-rich's treasure

Singapore: Singapore is seeing a gold rush of a different kind – ultra-wealthy investors are moving billions in bullion to the city-state’s high-security vaults as economic and geopolitical tensions escalate. One facility, The Reserve, reports an 88% surge in gold storage requests this year, with sales of physical bars up 200% from 2023.

"High-net-worth clients see tariffs, instability, and banking risks," Gregor Gregersen, founder of The Reserve, told CNBC, noting 90% of new clients are foreign. The trend reflects a flight to safety, with gold prices hitting record highs amid U.S.-China trade spats and April’s market turmoil. Some analysts predict bullion could reach $5,000/ounce in 2025.

Investors are ditching "paper gold" (ETFs, futures) for tangible bars to avoid counterparty risks exposed by 2023’s Silicon Valley Bank collapse. "If a bank fails, pooled reserves can vanish," Nicky Shiels of MKS Pamp, told CNBC.

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Physical gold also appeals to those distrusting banks in crisis-prone nations like Lebanon or Egypt, Jeremy Savory of Millionaire Migrant told the business news outlet.

Dubbed the "Geneva of the East", Singapore offers political stability, robust security, and ease of access as a global transit hub. "Switzerland is losing out," Savory noted, adding that Dubai, while secure, demands more paperwork.

Though storage costs are higher than paper gold, the wealthy see it as insurance against a wobbly financial system. As Gregersen put it: "In uncertain times, they want metal in a safe place – and Singapore fits the bill."

What does 2025 hold for gold bullion?

The outlook for gold bullion in 2025 is broadly bullish, with most major banks and analysts forecasting continued price appreciation driven by a set of supportive factors.

Central banks remain robust net buyers, seeking to diversify reserves and hedge against currency volatility. This trend is expected to continue, providing a strong foundation for gold demand.

Persistent inflation and weakening fiat currencies, especially amid ongoing global economic uncertainty, are pushing investors toward gold as a hedge.

Ongoing conflicts, trade wars, and political instability are reinforcing gold’s appeal as a safe-haven asset.

Expectations of further interest rate cuts by major central banks, including the U.S. Federal Reserve, are likely to support gold prices by reducing the opportunity cost of holding non-yielding assets like gold.

Renewed inflows into gold-backed ETFs and increased retail investment, particularly in markets like Canada and Asia, are further boosting demand.

Some forecasts, particularly from JP Morgan and Goldman Sachs, see the possibility of gold approaching or even surpassing $4,000 per ounce by 2026 if demand remains exceptionally strong or if economic risks intensify.

Even in more conservative scenarios, most institutions see gold holding well above $2,600 per ounce, with $2,800–$3,100 as a likely range barring a major negative shock.

The most significant risk to gold’s bull case is an unexpected decline in central bank demand or a scenario where the U.S. economy remains so strong that the Federal Reserve adopts a more aggressive tightening stance, pushing real yields higher and reducing gold’s appeal.