Gold-buying trend takes hold in Singapore

SINGAPORE - Gold retailers in Singapore are boosting inventories to cater to higher demand for the precious metal amid the ongoing crisis in the Middle East.

Bullion dealers, jewellers and pawnshops told The Straits Times that buying of the precious metal has surged in recent times amid ongoing geopolitical tensions and expectations of interest rate cuts.

Items like gold bars, coins and jewellery are among the items being snapped up by local buyers in recent weeks, with some also eyeing silver, they said. Also in the mix are people who want to cash in or trade their older gold items.

Besides middle-aged customers, some have also observed a younger crowd wading into the gold-buying trend.

Mr David Mitchell, founder and managing director of bullion dealer Indigo Precious Metals, said his store has seen demand rise over 100 per cent so far in 2026, compared with the same period in 2025. The company runs a retail outlet in Bukit Pasoh Road.

“We have seen more buyers than sellers over the past year, but we also are beginning to see more sellers entering the market, which is typical after strong price moves,” he said.

Mr Mitchell added that fabrication capacity and logistics at gold refineries – mainly in Europe, in countries like Switzerland and the UK, as well as Hong Kong – are currently stretched, which can lead to longer production times and higher premiums for certain bars and coins.

As a result, Indigo will maintain higher buffer stock of core items such as 100g gold bars and 1oz gold coins while “managing” premium and price risks, he said.

“In the near term, price action is being driven primarily by geopolitics and interest rate expectations – if the current conflicts expand or key supply routes remain disrupted, the market may remain elevated longer than many expect,” said Mr Mitchell.

Gold prices have been volatile in recent weeks. The precious metal hit a record high of US$5,589.38 per ounce on Jan 28, before pulling back sharply to trade between about US$4,800 and US$5,200 for weeks.

Prices then jumped about 3 per cent to breach US$5,300 when markets opened on March 2, after the United States and Israel launched a strike on Iran over the weekend, before easing to around US$5,050 at the time of writing.

The surge in oil prices has also added to the price fluctuations in the precious metals market. Higher energy costs could fuel inflation and prompt the US Federal Reserve to keep interest rates higher for longer or even raise them further, which could weigh on non-yielding assets such as gold.

Mr Gregor Gregersen, founder of precious metals dealer Silver Bullion, said sales of both gold and silver bullion in the 12 months to March 1 were about 4.5 times higher than a year earlier, representing an increase of roughly 350 per cent.

He noted that most of the demand was concentrated in January and February following sharp volatility and a precious metals crash in late January, which triggered a wave of dip buying.

“Physical demand remains high, but we have not seen a repeat of the surge that occurred after the January price crash,” said Mr Gregersen.

“The war in the Middle East is broadly bullish for precious metals, but investors may currently be more focused on deleveraging riskier assets amid falling equities rather than adding safe-haven assets such as gold.”

Mr Gregersen said Silver Bullion, which has a retail outlet at Millenia Walk, is quintupling its gold storage capacity to 2,500 tonnes by building 22 additional vaults at The Reserve, the company’s 180,000 sq ft secure vaulting facility in Changi South.

“For 2026, I expect a revenue of around $2.5 billion, with an even split between gold and silver,” he said.

Ms Yeah Lee Ching, managing director (retail and trading) at ValueMax, said the pawnbroker has seen a “noticeable increase” in gold buying over the past year, particularly for London Bullion Market Association (LBMA) gold bars and 916 gold jewellery.

Sales revenue from ValueMax’s 50 pawnbroking and retail outlets – and one business-to-business trading operation – in Singapore rose to $425 million in 2025, from $343 million the previous year, she noted.

Gold accounted for the bulk of sales, although the figure also includes diamonds and luxury watches. Most of ValueMax’s outlets are located in the heartland, according to its website.

“We have been a distributor of the world’s popular investment-grade PAMP Suisse bars for decades, and demand for the iconic ‘Lady Fortuna’ gold bar has been rising steadily since last year,” said Ms Yeah, adding that demand for pre-owned 916 gold jewellery has also been increasing.

The “Lady Fortuna” refers to a Swiss-made gold bar embossed with the Roman goddess of fortune.

Some ValueMax outlets have also seen higher footfall as compared with a year ago, said Ms Yeah.

“During such periods, it is common to see both buying and selling activities increase, with buyers seeking to secure physical assets while some sellers take the opportunity to realise gains when gold prices reach new highs,” she said.

Ms Yeah added that ValueMax will increase its PAMP Suisse bars “several times more” to cope with the surge in demand, but did not give specific figures.

Ms Angelina Lau, group general manager at SK Jewellery Group, said that there has been a “noticeable increase” in customers returning to trade in older gold jewellery that was purchased years ago when prices were significantly lower.

While the number of customers selling gold remains smaller compared with those purchasing, trade-in activity has grown alongside rising gold prices, she noted.

“Some choose to upgrade to newer designs, while others exchange a single heavier piece for multiple items such as gold jewellery or gold collectibles,” said Ms Lau.

Ms Lau said that while it is still too early to determine the full impact of the war in the Middle East, the jeweller, which has 33 outlets in Singapore, is “closely monitoring demand trends” and will adjust stock levels where necessary.

Mix of buyers

Gold dealers say demand is coming from a mix of younger and older buyers, with interest ranging from bullion bars to gold jewellery.

Mr Lim Chun Seng, group general manager at MoneyMax Financial Services, said the pawnbroker has observed growing interest among younger consumers in their 20s and 30s, who are increasingly viewing gold as an investment asset. MoneyMax has 51 outlets in Singapore.

“Transactions include 916 and 999 gold jewellery, as well as investment-grade products such as 9999 gold bars,” he said.

“We have also observed more transactions in smaller jewellery items such as pendants and earrings, reflecting how consumers are adapting their purchases in response to higher gold prices while still maintaining an interest in owning gold.”

ValueMax’s Ms Yeah said that its customer base is “fairly diverse” across age groups.

“Investors purchasing investment-grade gold bullion bars increasingly include younger and middle-aged customers who are looking to diversify their portfolios, hedge against inflation, and gain exposure to physical precious metals,” she said.

Meanwhile, Silver Bullion’s Mr Gregersen said the firm’s clients span all adult age groups, although those aged 40 to 65 make up the largest segment.

Indigo’s Mr Mitchell said younger investors are typically in the early stage of their careers and face greater liquidity constraints, which limits their ability to allocate larger amounts of money to bullion.

“Our client base is mainly middle-aged and older investors,” he said.

Ms May is among the Singaporeans who have been increasing their gold holdings.

The 65-year-old beauty salon owner said she began buying gold jewellery “30 to 40 years” ago, but has recently converted some of her holdings into investment-grade gold bars in sizes such as 10g, 20g, 50g and 100g.

“I heard that investment-grade gold bars preserve their value better and are also much easier to carry in case of emergencies,” said Ms May, whose full name is not disclosed for safety purposes.

Fellow investor Tang Tian Li said that he started purchasing gold bars in 2022.

“The decision was influenced by observing broader developments in the global economy,” said the 30-year-old artist.

“As new centres of power continue to rise and compete for influence, the reliability of fiat currencies whose values depend largely on government policies and monetary systems appears more fragile than many assume.”

Mr Tang said that he “would not be surprised” to see gold hit new all-time highs by the end of the year if monetary easing coincides with continued geopolitical instability and strong demand from central banks and investors.

“My own investing approach remains straightforward... Rather than attempting to time the market, I plan to continue accumulating gold and silver gradually, particularly during price pullbacks,” he said.

“The focus is not on short-term speculation but on long-term preservation of value,” he added.

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This article was first published in The Straits Times. Permission required for reproduction.