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Gold: a Safe Haven for Private Wealth Investors in Singapore

By Nicolas Mathier, CEO, Global Precious Metals Pte Ltd

A SAFE HAVEN FOR PRIVATE WEALTH INVESTORS IN SINGAPORE

What’s the Deal With Gold?

Did you know that astronauts’ helmets are coated in gold? Gold’s unique property of being highly reflective shields the astronauts from solar radiation, enhancing its mesmerising charisma since historical times. Gold’s allure is deeply rooted in history, culture, and practicality, spanning civilisations like the Egyptians, Greeks, and Romans. Serving as currency, symbol of power, and religious artefact, gold embodies wealth, luxury, and authority globally. Its use in jewellery and regalia epitomises its enduring significance across cultures and generations. With non-corrosive properties and lasting value, gold symbolises immortality and deity, distinct from paper currencies. As a beacon of financial security, especially during economic uncertainty, it attracts investors and central banks alike to increase their gold reserves.

Gold: a Safe Haven in the Eyes of Many

Amid waning confidence in traditional financial institutions, gold is a refuge, protecting against systemic risks, a role it has already exhibited in past events. As a tangible asset, it is recognised to be immune to the risks associated with paper currencies and public markets, making it a reliable store of wealth. Historical events such as economic downturns, banking failures and heightened inflation, have fuelled a shift towards gold, bolstered by its intrinsic value and frictionless liquidity.

GOLD: A SAFE HAVEN IN THE EYES OF MANY​

Financial volatility and geopolitical tensions can lead to unpredictable market swings, prompting investors to seek counter-cyclical assets. Gold’s stability, low and perhaps even negative correlation with other asset classes make it an appealing option for diversification, acting as a safeguard against erratic public market behaviours as evidenced over the long term.

Gold Etfs Vs Physical Gold

Gold ETFs offer investors exposure to gold without physical ownership, providing liquidity and easy trading. Physical gold, though secure and an inflation hedge, requires storage and insurance. Despite the notion of ETFs being cost-effective, with an expense ratio (management and administrative costs) of 0.4% and transaction commissions, do the cumulative costs really express more affordability compared to buying physical gold?

Shifting Market Dynamics From Europe to Asia

The global gold trading landscape is experiencing a notable shift from European to Asian markets, driven by economic, cultural, and geopolitical factors. Asia’s economic rise, particularly led by China and India, is fuelling increased demand for gold, valued for its cultural significance and perceived stability.

Central banks in Asia, notably China and India, are actively increasing their gold reserves to diversify away from traditional currencies, contributing to the eastward movement of gold.

Geopolitical tensions globally are driving investors and central banks to seek safe-haven assets, with Asia emerging as a stable and resilient region for storing and trading gold. This transition signifies more than an economic move; it reflects a strategic response to global uncertainties, underscoring Asia’s evolving role in shaping the dynamics of the gold market.

Singapore’s Allure for Private Wealth Investors

As this shift unfolds, Singapore is poised to emerge as the next gold trading hub in Asia, with its strategic location, robust financial infrastructure, and proactive initiatives in the precious metals industry.

Its strategic location at the crossroads of major shipping routes and its reputation as a top global hub facilitates seamless trade. The city-state boasts a robust financial infrastructure and state-of-the-art storage facilities (Freeport), creating an ideal environment for gold investment activities.

Singapore’s growth as a gold trading hub is propelled by attractive tax benefits on investment-grade precious metals, offering cost-effectiveness with no additional wealth taxes, including capital gains and inheritance tax.

Known for its stable political environment and one of the pioneers of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act (PSPM Act), this ensures that individuals can trust that their assets in Singapore will be safe from any sudden leadership and policy changes, while Singapore remains resolute in its dedication to safeguard valuable assets from any potential threats or malicious intentions.

Legacy planning with gold involves incorporating the precious metal into estate plans to preserve family wealth, diversify assets, and transfer value across generations. Integrating gold into wills, trusts, or direct ownership facilitates seamless distribution, reducing disputes and securing financial stability for heirs. As a tangible symbol of heritage, gold ensures a lasting legacy beyond monetary worth, safeguarding family wealth, mitigating risks, and leaving a profound impact on future generations.

So, are you ready to hoard gold too?

SBMA - Author GPM NICOLAS MATHIER

NICOLAS MATHIER, the visionary behind Global Precious Metals (GPM) since 2012, embodies the pinnacle of Swiss banking tradition. With a wealth of experience in private banking and wealth management, his journey began at Lombard Odier & Cie in Geneva, Switzerland. Delving into the intricacies of precious metals at Swiss Precious Metals in 2010, he solidified his expertise. Under Nicolas’ leadership, GPM has flourished, extending its reach to various corners of the globe.

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Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

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Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

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Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

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Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

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Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

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Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

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Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

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Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

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Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

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Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

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Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

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Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

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Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

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Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

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Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

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Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.