Why are the world’s wealthiest sending their gold to Singapore? Addendum to the popular WSJ Video
A recent Wall Street Journal feature showed the inside of our vault and asked: “Why are the world’s wealthiest sending their gold to Singapore?”
The answer matters not only for ultra-high-net-worth investors but for anyone planning long-term wealth preservation. Below we address the most common questions and concerns raised after the video.
Why Singapore?
Singapore has developed, through competent governance, into one of the most successful, stable and rules-based jurisdictions in the world.
For many clients, Singapore provides a way to hedge their jurisdictional risk and protect a portion of their wealth from the political and financial risks in their home countries.
Singapore is particularly well suited for intergenerational systemic wealth protection because:
1 It is one of the wealthiest countries in the world, with prosperity earned through commerce.
2 Its continued success depends on maintaining investor trust and protecting private property.
3 It is widely respected, economically relevant, and a regional military power. Its defense budget is roughly three times that of Malaysia.
While no jurisdiction is risk-free, Singapore is ideal for Inter-generational vaulting.
Learn more about Singapore:
- Singapore’s Success Story, driven by pragmatism, not idealogy by Gregor Gregersen
- Why Singapore’s Debt Is Often Misunderstood, Singapore's wealth in detail by Gregor Gregersen
- Switzerland vs. Singapore (video), Economic, military, and policy differences by Gregor Gregersen
Recommended third-party video features on Singapore:
- Singapore: The Most Overpowered Country in the World? - WSJ
- How Singapore Got Crazy Rich, Crazy Fast - Economics Explained
- The Best-Run Dictatorship in History: Singapore - RealLifeLore
Why Use a Professional Vault?
The saying “If you don’t hold it, you don’t own it” is often true – especially because the gold vaulting industry is, unfortunately, opaque. Facts are frequently distorted, and many clients are led to believe they “own” bullion when, in reality, they only hold paper exposure and are little more than unsecured creditors.
At the Silver Bullion Group, this is fundamentally different. We do not carry client bullion on our balance sheet (with the sole exception of pre-order bullion that is in transit before an order is fulfilled). Your metals are your legal property under Singapore law, not our assets, we cannot encumber them and Singapore law has criminal, not commercial, penalties for invoice tampering.
A key point many investors miss is how ownership is actually determined. It is the invoice specifying the exact bullion items and serial numbers you purchased, not a generic account statement, that establishes legal ownership.
To understand this in depth, see the video: Why Legal Ownership Keeps Your Gold Safe In A Crisis which also clarifies the important difference between "beneficial" and "legal" ownership.
Once precious metals become a meaningful part of your net worth, priorities change: the focus is no longer just on holding gold, but on protecting it from systemic risks such as currency crises, capital controls, war, and nationalization.
For almost 17 years, we have built the Silver Bullion dealership, The Safe House vault, and The Reserve vaulting facility to help clients own their gold, silver and platinum securely, even if it is far away. The goal is not to eliminate self-custody, but to complement it with stronger legal, operational, and jurisdictional protections than most individuals can realistically achieve on their own.
Why Store Gold Offshore in Singapore?
Metals stored under exclusive Singapore jurisdiction fall under different laws and incentives than in your home country. This matters during:
- Currency or banking crises
- Capital controls or financial repression
- Geopolitical instability or conflict
- Gold nationalization or compulsory buybacks
In such scenarios, gold stored offshore in Singapore may not be subject to the same restrictions as assets held domestically.
For deeper analysis:
- Exclusive Singapore jurisdiction - why we store only in Singapore
- Singapore’s gold-ownership regulations in systemic crises
- Offshore Gold Storage: Best jurisdictions to store gold (video
Bullion & Singapore, useful primers:
- Singapore’s Tax Policies on Investment Precious Metals and Bullion
- Overview of the Singapore Precious Metals Market for International Investors
- Le Freeport: Facility Overview and Current State
What Professional Vaulting in The Reserve Provides
Our modern purpose built facility, being one of the largest in the world, offers protections far beyond what a home safe or bank safe deposit box can deliver:
- Security infrastructure - UL-rated vaults, layered access, sensors, mantraps and hardened architecture.
- Insurance - coverage for theft, physical loss and employee infidelity and mysterious dissapearance
- Clear legal title - you own specific parcels, not an unallocated claim.
- Full auditability - parcel-level reconciliation, third-party audits and transparent reporting.
- Genuinity verification - DUX non-destructive testing and parcel-level inspection.
- Collateral and liquidity options - use your vaulted bullion for loans or settlement.
Serious vaulting depends on systems, not personalities. However the industry at large remains plagued by misconceptions that ultimately put clients at risk.
These are explored in Gregor’s article “3 Common Misunderstandings in the Bullion Storage Industry.(2015)”
Owning Your Bullion - Even If You Don’t Hold It
The key question is ownership: are you the legal owner of individually identified bullion that is:
- Serialized and parcelized in your name
- Kept off the vault operator’s balance sheet
- Auditable by you and independent parties
- Insured and legally protected
Our S.T.A.R. Storage system was designed specifically for this. The goal is simple: your metals remain yours, their existence is verifiable, and no single point of failure can compromise your wealth.
Learn more:
- Be an Asset Owner, Not a Creditor (video)
- Unallocated vs. allocated vs. segregated storage
- How parcels and audits work
- DUX Testing and the Genuinity Guarantee
- All Silver Bullion Insights Articles
Talk to Us About Your Storage Strategy
Your optimal storage mix, what stays at home, domestically or offshore, depends on your assets, your jurisdiction and your long-term objectives. We can help structure a solution aligned with your risk profile.
Schedule a vaulting consultation
Common Questions Derived From WSJ YouTube Comments
“Isn’t the WSJ video just an ad?”
The WSJ segment is an exploration on why cleints are increaingly vaulting physical gold in Singapore, what the role of systemic wealth protection is and to obtain footage of one of the highest capacity vaults in the world. There was no payment made to The Wall Street Journal and the segment is not an advertisement nor an advertorial.
“If I don’t hold the gold myself, do I really own it?”
Self-storage works for small holdings. Larger holdings benefit from professional vaulting, which adds security, insurance, legal clarity and operational capabilities. The key is that your storage agreement must make the bullion legally yours, separate from the vault’s assets.
“Is Singapore really safe in a geopolitical crisis?”
No country is immune. Singapore’s value lies in its wealth, political stability, legal predictability and long-term incentive to protect its reputation as a trusted hub. Many clients store here to diversify away from home-country risk, not because Singapore is perfect, but because it is different.
“What about inside jobs or staff misconduct?”
We assume insider risk and design against it: multilayer controls, surveillance, logs, audits and are insured though Lloyd's of London for up to $1.5 billion per incident covering loss from thenft, employee infidelity or mysterious dissapearance. Strong systems, not personal assurances, protect client assets.
“Why not just use ETFs, futures or Bitcoin?”
Paper gold and digital assets can be excellent trading instruments. Allocated physical bullion in a robust jurisdiction is aimed at long-term, "off bank" wealth preservation. Many investors use both for different purposes.