Singapore's Gold Investment Demand Grows Slower Than Regional Peers

Modest Growth After Record Year

Singapore purchased 2.3 tonnes of investment gold during the second quarter, marking a 6% increase from the same period last year, according to the World Gold Council. The figure represents one of the slowest expansion rates among major Southeast Asian markets tracked in the region.

The growth rate puts Singapore behind Indonesia, where demand surged 40%, and Malaysia, which recorded 28% growth. Thailand posted a 10% increase. Only Vietnam saw weaker performance, with demand falling 31% year-on-year.

The modest quarterly gain follows a strong first quarter, when Singaporeans bought 3.5 tonnes of bars and coins. For the first half of 2026, the city-state's total investment gold purchases reached 5.8 tonnes, the smallest volume among the five Southeast Asian countries with available data.

Regional Context

Indonesia led the region with 38.1 tonnes purchased in the first half, followed by Thailand at 20.9 tonnes and Vietnam at 15.6 tonnes. Malaysia bought 6.3 tonnes during the same period.

Singapore's slower pace comes after an exceptional 2025, when the country purchased a record 9.6 tonnes of investment gold, up 48% from the previous year. That surge reflected a broader regional trend as investors sought safe-haven assets amid currency volatility and geopolitical uncertainty.

Southeast Asia as a whole saw gold bar and coin sales reach 36.7 tonnes in the second quarter, up 7.6% year-on-year, data from the World Gold Council shows. The regional figure suggests continued appetite for physical gold, though growth rates vary significantly by market.

Global Trends

Globally, consumer demand for bars and coins declined 3% to 307.1 tonnes in the second quarter. The drop contrasts with institutional buying, as central banks set a record for second-quarter purchases.

Central bank net gold demand hit 289 tonnes, driven by continued accumulation from Poland and China. Official sector buying has been a defining feature of the gold market over the past two years, as monetary authorities diversify reserves away from dollar-denominated assets.

The divergence between retail and institutional demand highlights different motivations. Central banks view gold as a strategic reserve asset and hedge against currency risk, while individual investors respond to price levels, local economic conditions, and cultural affinity for physical gold.

Market Dynamics

Singapore's relatively slower growth may reflect several factors. The city-state's mature financial market offers sophisticated investors a wide range of alternatives, from equities and bonds to real estate investment trusts and digital assets. Gold competes with these options in investor portfolios.

Additionally, Singapore's strong currency and stable economic outlook reduce the urgency some investors in other markets feel to hold physical gold as a store of value. In contrast, countries experiencing higher inflation or currency depreciation often see more robust demand for gold as a wealth preservation tool.

The city-state's role as a regional trading and storage hub for precious metals also means some gold flows through Singapore without necessarily reflecting domestic investment demand. Bullion banks and refineries operate in the city, serving clients across Asia.

Looking ahead, gold demand across Southeast Asia will likely remain sensitive to price movements, macroeconomic conditions, and shifts in investor sentiment. With prices near historic highs and central banks continuing to accumulate, the market faces competing pressures that could shape buying patterns in the second half of the year.