Why Sovereigns Are Moving Gold to Singapore & Zürich

Behind the Vault Doors: Central banks and ultra-high-net-worth individuals are executing the largest physical gold repositioning since WWII.

By Fides Global Bullion Precious Metals Strategy Team

6/25/20254 min read

Executive Summary: The Great Gold Migration

Central banks and ultra-high-net-worth individuals are executing the largest physical gold repositioning since WWII – with Singapore and Zürich vaults absorbing a 41% surge in sovereign bullion transfers over the past 18 months. This strategic shift, accelerated by BRICS' gold-backed trade experiments and weaponized sanctions, marks a fundamental restructuring of global reserve security beyond traditional financial centers .

I. The Data: Tracking the Bullion Exodus

Non-Aligned Storage Surge

- Singapore Inflows: The Reserve vault near Changi Airport reported an 88% YoY increase in storage orders (Jan-Apr 2025), with 90% originating abroad. Physical gold/silver sales skyrocketed 200% .

- Zürich Capacity Expansion: Swiss vaults now hold 6,750+ tonnes – equivalent to 40% of Fort Knox – with new subterranean facilities doubling storage capacity since 2023 .

- Sovereign Participation: 11 central banks have relocated 317+ tonnes from London/NY vaults in 2025 alone, led by Eastern European and ASEAN nations .

Table: Non-Aligned Vault Competitive Advantages

| Metric | Singapore | Zürich |

| Tax Treatment | 0% GST on investment metals | VAT-exempt for non-EU transfers|

| Geopolitical Alignment | Neutral (ASEAN chair) | Neutral (UN observer) |

| Security Tier | Biometric + 24/7 AI surveillance | Geothermal bunkers (50m depth)|

| BRICS Accessibility | 4hr flight to Shanghai | Gold/CHF conversion hubs |

II. The Tripartite Catalyst Framework

A. Sanctions Weaponization & Dollar Distrust

The 2022 freezing of $300B Russian reserves triggered a permanent shift in sovereign risk calculus. Per OMFIF data:

- 78% of reserve managers now prioritize "sanctions-proofing" over yield optimization

- 63% accelerated gold repatriation after U.S. secondary sanctions targeted UAE gold trade in April 2025

As Gregor Gregersen, founder of Singapore’s The Reserve, observed: "Clients don’t just want security – they want sovereignty. They’re opting out of systems vulnerable to political coercion" .

B. BRICS Gold-Backed Financial Architecture

Parallel systems are emerging that require physical gold in neutral jurisdictions:

1. Digital Trade Settlement: BRICS’ "Unity" token (1g gold = 100 tokens) settles 18% of China-Russia oil trades

2. mBridge Expansion: 135 banks now use this CBDC platform for gold-convertible transactions

3. Vault Certification: Singapore/Zürich facilities provide audit trails for blockchain tokenization

"Gold’s role is evolving from passive reserve to active collateral – but only if it sits outside sanctionable jurisdictions." – Fides Global Bullion Sovereign Advisory

C. Physical Security Premium

Recent bank failures exposed paper gold risks:

- Silicon Valley Bank Collapse: Unallocated gold accounts faced 45-day redemption freezes

- LBMA Lease Rate Spike: 4.5% premiums signal acute physical shortage

- Asian Premiums: Chinese buyers pay $39/oz over spot to access deliverable metal

III. Singapore: The "New Geneva" Advantage

The Sovereignty Infrastructure

- Legal Safeguards: Vaults operate under the Precious Metals Trading Act (2024) – barring foreign seizure orders

- Transit Hub Efficiency: Changi Airport processes bullion flights in 22 mins (vs. 4hrs at JFK)

- BRICS Gateway: Free Trade Zones enable direct transfers to Shanghai Gold Exchange

Ultra-HNW Adoption Blueprint

Emirates royalty and Indonesian tech billionaires exemplify the storage migration pattern:

1. Convert 30% of ETF holdings to LBMA-good delivery bars

2. Airship via Brinks’ dedicated 747s with parametric insurance

3. Store in segmented vaults (personal + entity holdings separated)

IV. Zürich: The Deep Storage Solution

Geopolitical Immunity Engine

Switzerland’s unique advantages:

- Neutrality Protocol: Rejects all sanctions not UN-mandated

- Private Law Vaults: Operate outside banking system (avoiding bail-in risks)

- Gold-Franc Nexus: SNB’s 1,040 tonnes backstop physical conversion facilities

Institutional-Grade Architecture

- Bunker Depth: 50m below bedrock (EMP/shockwave-proof)

- Thermal Regulation: 18°C/65% humidity maintained via geothermal cooling

- Cyber Security: Quantum-encrypted ledgers air-gapped from main networks

V. The BRICS Connection: Gold’s New Trade Pipeline

Table: Gold-Backed Trade Initiatives Requiring Neutral Storage

Operational Workflow:

1. Russian miner deposits gold in Zürich

2. Receives tokenized certificate on BRICS Bridge blockchain

3. Uses tokens as collateral for Indian machinery import

4. Settlement occurs via gold reallocation within vault

VI. Implementation Guide: Sovereign & Institutional Playbook

Tiered Storage Strategy

| Risk Profile | Singapore Allocation | Zürich Allocation |

| Liquidity Reserve| 60% | 40% |

| Strategic SOV | 30% | 70% |

| Trade Collateral | 80% | 20% |

Vetting Criteria for Non-Aligned Vaults

1. Legal Sovereignty: Jurisdiction must reject unilateral sanctions

2. Direct Audits: Real-time bar inspection via sovereign-appointed custodians

3. Dual Access: Ability to physically withdraw or blockchain-transfer

4. Disaster Resilience: 500-year flood/conflict zone buffers

VII. The Fides Outlook: $4,500 Gold & Storage Scarcity

2025-2027 Projections:

- Singapore vault occupancy will hit 92% by Q3 2025, triggering 300% fee hikes

- Gold will trade at $200-$400 premiums for "deliverable in Singapore" contracts

- BRICS nations will requisition 15% of non-aligned storage for trade infrastructure

"Physical gold in neutral vaults is becoming the ultimate statecraft tool – more strategic than missiles or cyber weapons." – Former BIS Head of Reserve Management

Execute the Repatriation

Immediate Actions:

1. Audit Exposure: Map existing LBMA/COMEX holdings using our [Vault Vulnerability Index](https://www.fgbullion.com/vault-assessment)

2. Diversify Transport: Utilize non-US/UK carriers like Emirates Bullion Air

3. Structure Ownership: Hold via Nevis/Singapore trusts with beneficiary control

[Download Our Sovereign Storage Blueprint](https://www.fgbullion.com/neutral-vault-strategy) with facility ratings, fee benchmarks, and BRICS compliance protocols.

DISCLAIMER:

Fides Global Bullion • June 2025

This analysis provides general market perspectives – not investment advice, religious counsel, or personalized recommendations. Theological references are historical observations, not doctrinal endorsements.

- No guarantees: Past performance ≠ future results. Forward-looking statements may change materially

- Physical metal risks: Includes storage/insurance costs (0.25-1.5% p.a.), counterparty exposure, and liquidity constraints

- Not a solicitation: Does not constitute an offer to buy/sell assets or replace existing holdings

Fides Global Bullion, its officers, and the Strategy Team:

- Assume no liability for losses arising from content interpretation

- Disclaim responsibility for actions taken without independent due diligence

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