Singapore, which is located near the world’s two largest gold consumers (China and India,) is working towards becoming the main gold hub in Asia. Gold bullion there is tax-free, and several large banks have opened huge gold storage vaults there.
However, one part of the island nation’s plans have hit the trash can – the Singapore Bullion Market Association, which has been working for nearly a year to set up an Asian “gold fix” benchmark to compete with London, has cancelled the project. Ongoing investigations by regulators into the manipulation of gold and silver markets, and the surprise announcement by Deutsche Bank that it was withdrawing from the London gold fix consortium, has meant that no large bank or refiner wants to expose itself to scrutiny. Deutsche Bank, Germany’s largest bank, is presently under investigation for currency and precious metals manipulation
Proponents of an “Asian gold fix” note that it would give an up-to-date price for Asian markets, where most of the world’s physical gold purchases are made, and give a better idea of activity in the Asian gold market.