The new high-security vaults meet the growing demand for precious metals storage, especially gold and silver, from the super-rich.

In Singapore, The Reserve, a six-story vault set to open in July 2024, can store up to 10,000 tonnes of silver, about a third of the world's annual supply, and about 500 tonnes of gold, about 50% of the gold purchased by central banks globally in 2023.

The facility, which occupies more than 170,000 square feet, is among the largest in the world. However, the company that built The Reserve, Silver Bullion, says its vaults are full and demand for new space remains high.

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Demand for gold storage increases. Photo: Kitco

“We need more vaults,” Silver Bullion founder Gregor Gregersen told Bloomberg. “People who invest in precious metals are looking for places to store their assets outside of banks, which are used to store precious metals.”

Today's elite are increasingly turning to gold and precious metals as a stable store of wealth, especially in times of geopolitical uncertainty.

Jeff Christian, managing partner at commodities research and investment firm CPM Group, described the trend as a way for high-net-worth individuals to “de-risk” their assets. Gold, he said, is one of the few assets that offers the ultra-wealthy a risk-free store of value.

Singapore has become a hub for foreign exchange reserves, partly because it is seen as a safe and stable place. Other countries are also getting into the storage business.

A representative of New Zealand Vault, an independent company that operates a gold bullion storage facility in the New Zealand capital Wellington, said it is receiving interest from a number of customers from Hong Kong (China) and the US.

One of New Zealand’s advantages is that it is far from the world’s hotspots, said John Mulvey, head of New Zealand Vault. “People see us as a safe haven,” he said.

(According to Bloomberg)