If You're Investing in Gold, Singapore Just Became More Important ...

Editors Note: Interested in owning physical gold but feel like you don?t know enough? Check out this report.

Why Store Wealth in Singapore?

Currently, Singapore imports gold bars from Australia, Switzerland, Hong Kong and Japan. The bars are then sold to buyers scattered across Southeast Asia and India, home of the largest gold consumers in the world.

In addition, gold scraps from across the region are traded in Singapore. This exchange has a hand in helping to determine the premiums for gold bars against prices in London.

With the value-added tax now gone, Singapore is poised to pounce on the growing precious metal investment and trading trend, and claim a prominent place in the thriving industry.

The city's easy trading laws, strong dollar, robust locale, low personal and business taxes, no capital gains tax, and reputation as a secure shelter for the storage of wealth are all among Singapore's advantages.

And then there is Singapore's low crime rate and political stability.

"People feel safe storing there gold here," Gregor Gregersen, director of Singapore-based physical gold and silver supplier Silver Bullion Pte. Ltd, told The Wall Street Journal.

Investors have been waiting to invest in gold until after the tax break takes effect. Singapore's gold sales are expected to jump about 10% this month now that the tax has been cut.

"Within Asia, investors want to hold their gold in Singapore. China is riskier than Singapore, so Singapore should attract more demand," Cedric Chanu director of Asian precious metal trading for Deutsche Bank told The Journal.

Time for Investing in Gold

Worldwide, economies have struggled and global central banks have responded by using record amounts of stimulus, drastically increasing money supplies.

This has led to waning dollar values and as a result, gold and silver have become hedges against reckless global monetary policies and have become a preferred holding as a store of assets and wealth.

"There has been a dramatic increase in customers wanting to move out of paper, that is over-the-counter gold, and into physical. We're seeing customers wanting to move their gold from Europe into Singapore," Chanu noted.

Since the start of the financial crisis in 2008, gold prices skyrocketed from just under $850 an ounce to a peak of $1,920 reached in September 2011. After a pullback, the yellow metal is currently moving back toward its all-time highs, trading around $1,770 an ounce.

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Source: http://moneymorning.com/2012/10/08/if-youre-investing-in-gold-singapore-just-became-more-important-to-you/

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