A silent battle for control of the world's gold is underway.
Singapore opens its armored doors to central banks, Hong Kong prepares a gigantic expansion of its vaults, and London sees new competitors emerge in a sector it has dominated for decades. What is at stake is not merely thousands of tons of precious metal, but trust, economic dominance, and power over sovereign reserves.
Singapore opens its vault and triggers turmoil
On November 10, 2026, the Monetary Authority of Singapore officially announced the launch of a new gold custody service for foreign central banks, international financial institutions, and sovereign entities.
The new facility has a storage capacity of up to 500 tons of gold, with prospects for further expansion if demand increases.
This move is not simply another investment in financial infrastructure. It is an effort by Singapore to claim a larger share of the global market for the custody and movement of the precious metal.
Deputy Prime Minister and Chairman of the Monetary Authority, Gan Kim Yong, confirmed that foreign central banks have already expressed interest in the new service, without, however, disclosing their identities.
This detail takes on particular significance at a time when many nations are reconsidering where and under what conditions they should keep their national reserves.
Singapore seeks to offer an additional safe haven, with access to gold markets during Asian trading hours and services that will facilitate major international movements of capital and precious metals.
Hong Kong responds with a mammoth plan: over 2,000 tons of gold
Singapore is not acting alone. Hong Kong is seeking to evolve into one of the most important hubs for gold trading, clearing, and custody in the world.
A specialized precious metals storage facility has already been operating at its international airport since 2009, with an initial capacity of 150 tons.
However, its ambitions are far greater.
Hong Kong authorities have unveiled a plan to increase the region's total storage capacity to more than 2,000 tons within three years.
At the same time, they are developing a comprehensive gold trading and clearing system aimed at attracting international banks, investment funds, and sovereign institutions.
Its connection with mainland China provides a major strategic advantage. Hong Kong can serve as a bridge between Chinese markets and the international financial system.
Thus, the showdown with Singapore is not just about storing gold bullion. It is about creating a new financial network in which a larger share of transactions will take place in Asia rather than exclusively in traditional Western centers.
9,464 tons of gold in London: the untold treasure of the West
Beneath London lies one of the most impressive concentrations of gold reserves on the planet.
According to data from the London Bullion Market Association (LBMA), at the end of June 2026, London's gold vaults housed a total of 9,464 tons of gold, valued at approximately 1.2 trillion dollars.
This is an unimaginable concentration of wealth, revealing why the British capital continues to play a central role in the global precious metals trade.
However, there is a crucial detail: these 9,464 tons do not belong exclusively to Britain, nor are they all held at the Bank of England. They include gold stored both at the central bank and in commercial vaults across London.
The Bank of England is one of the largest gold custodians internationally, managing roughly 400,000 bars on behalf of sovereign states, central banks, and selected financial institutions.
And here lies the truly striking element: a large portion of this gold belongs to other countries.
London does not merely hoard its own wealth. It safeguards a substantial share of other nations' reserves and facilitates their transactions.
Why do countries hand over their gold to foreign banks?
The question seems paradoxical.
Why would an independent state choose to keep a significant portion of its national gold reserves thousands of kilometers away from its borders?
The answer is tied to the history of the international financial system, security, ease of transactions, and access to the largest markets.
For decades, London served as a primary international center for gold trading. A country holding bullion in British vaults can sell or transfer it to another investor without having to physically move it.
Changing the registered owner is enough.
This reduces transportation costs, security risks, and transaction delays.
There is also the need for geographic diversification. Keeping part of one's reserves in different countries can protect a state from natural disasters, military conflicts, or domestic political turmoil.
Yet this strategy also has another side.
When national gold is held abroad, physical access to it also depends on the legal, political, and financial environment of the host country.
In an era of geopolitical rivalries, this factor assumes particular importance.
www.bankingnews.gr
Σχόλια αναγνωστών