Metalor Technologies SA, based in Switzerland, expects to complete its gold refinery in Singapore by the end of this year as the country seeks to expand its share of global bullion trading.
The precious-metals processor cast its first one-kilogram gold bar in Singapore this week, Chairman Scott Morrison said. The US$15 million ($18.8 million) refinery will have a capacity of about 150 metric tons a year, he said on Bloomberg Television’s “First Up” With Susan Li.
Gold slumped 17% this year, entering a bear market in April, as an improving U.S. economy spurred a rally in equities and undermined some investors’ faith in the metal as a store of value. Singapore removed a 7% sales tax from investment-grade precious metals last year in a bid to boost trading, while Deutsche Bank AG and JPMorgan Chase & Co. have opened vaults in the city. The plunge in April stoked a buying frenzy for bars, coins and jewelry from China to India.
“Right now, we can’t keep up with the demand in terms of investors in Asia purchasing gold,” said Morrison. “The amount of physical gold that is being sold to the investment community is quite substantial.”
Premiums in Singapore over London prices touched a record US$7 an ounce last month because of shortages in supply, according to Brian Lan, managing director at bullion dealer GoldSilver Central Ltd. in the city. The London price fell 14% in two sessions through April 15, the most since 1983.
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