Weekly Market Summary

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   Rushing to store gold in Singapore as global risks rise

   Amid rising global economic and geopolitical uncertainties, the ultra-wealthy are increasingly shifting their gold holdings offshore, with Singapore emerging as a top destination.

   One such facility, The Reserve, located near Singapore’s airport, has become a prominent storage site. This six-story building houses about US$1.5 billion worth of gold and silver. It features a vast storage chamber with thousands of safe deposit boxes stacked across three floors, along with numerous private vaults.

   According to founder Gregor Gregersen, The Reserve saw an 88% rise in gold and silver storage orders during the first four months of this year compared to the same period in 2024. Additionally, sales of precious metal bars more than tripled year-over-year, increasing by 200%.

   Gregersen noted that roughly 90% of new clients are international, drawn by concerns over tariffs, market volatility, and geopolitical instability. The preference for physical gold over paper assets is growing, as investors seek to avoid the risks associated with financial intermediaries and pooled reserves, especially in the event of institutional failures.

   Singapore’s appeal lies in its reputation for political and economic stability, earning it the nickname "Geneva of the East." Its status as a major global transit hub also adds convenience for international clients who want quick and secure access to their gold.

   With spot gold trading around $3,300 per ounce and predictions from JP Morgan that it could hit $4,000 by next year, physical bullion continues to attract high-net-worth individuals seeking a reliable store of value.

   Nicky Shiels from MKS Pamp emphasized that recent crises have underscored the importance of holding allocated, physical gold in trusted jurisdictions—further cementing Singapore’s position as a preferred storage location over traditional strongholds like Switzerland.

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   Bonds are 'boring' — but they're critical to understand right now

   Though often overlooked compared to the excitement of tech stocks, cryptocurrencies, and meme stock surges, the US bond market plays a vital role in the financial system — especially now, as concerns over rising yields and national debt gain momentum.

   Recently, bond yields have surged due to investor anxiety about increased government borrowing, trade uncertainties, and fiscal policies. Since yields move inversely to bond prices, sell-offs push yields higher, raising borrowing costs for mortgages, businesses, and even the government. This has wide-reaching economic implications and puts additional strain on federal finances, particularly in light of President Trump’s latest tax legislation, projected to expand the deficit by $2.4 trillion over the next decade.

   Experts note that conflicting policies — such as aggressive fiscal spending during periods of economic growth, combined with unpredictable trade and immigration measures — are causing market instability. This volatility challenges the traditional view of US Treasurys as a reliable safe haven.

   While bonds may lack the thrill of other investments, their influence on the broader economy means they are more important than ever, and staying informed on their movements is increasingly essential.