Singapore Kilobar Gold Contract To Launch in October
The Contract is the first wholesale 25 kilobar gold contract to be offered globally and is the result of a successful collaboration among the four parties. The Contract caters to the continuing strong demand for physical gold in Asia, which has increased significantly over the last decade. Its introduction underpins the creation of a centralised kilobar gold market, characterised by real-time transparent price discovery, daily expiration with physical delivery and robust verification of quality gold.
The launch of this world-first kilobar gold contract is a significant step towards establishing Singapore as a regional precious metals trading hub. The Contract will assist global suppliers of gold to better access markets across Asia and contribute to an increasingly efficient, transparent and trusted gold market.
It will also encourage a more developed gold market in South East Asia, while cementing Singapore’s role as a driving force behind the growth of the industry. The Contract is based on kilobar gold of at least 99.99% fineness of an Approved Brand, attested by the Gold Delivery Agent, freshly minted from an Approved Refinery from a SBMA gold delivery list, packed and sealed by the Approved Vault Operator in tamper-evident boxes, each containing 25 bars of a single Approved Brand. The Approved Brand and Approved Refineries are based on the SBMA’s Good Delivery List.
Brink’s Singapore Pte Ltd has been appointed as an Approved Vault Operator and its approved vault is at The Singapore Freeport. Banks supporting the development of the contract include JPMorgan Chase Bank, Standard Bank Plc Singapore Branch, Standard Chartered Bank and The Bank of Nova Scotia. (Please see Appendix A for further details of the Contract).
The Contract is another significant development for Singapore following its exemption of Goods and Services Tax (GST) on investment precious metals (IPM) in October 2012.