The central bank's physical holdings of the precious metal have climbed by close to 50% in the first seven months of the year. Yet gold's share in the reserves portfolio remains small.
The first six months of 2023 was eventful for asset owners. Bonds became the asset class of choice, gold came back on asset owners' radars, and family offices were the target of incentives from both Singapore and Hong Kong.
Gold will continue to appeal to asset owners amid economic uncertainty and persistent inflation, according to experts.
Inflation, banking crisis, and a weakening US dollar are putting gold under the spotlight. AsianInvestor asks asset managers if gold prices have hit a peak or if there is more room for prices to rise.
The AsianInvestor news team was very busy in March, covering big stories such as the UBS-Credit Suisse merger impact, as well as speaking to asset owners at our own events.
The Monetary Authority of Singapore's increased holdings follows a banner year for central banks buying the precious metal globally.
G7 leaders have committed to indefinite support for Ukraine in its defence against Russia’s invasion in addition to a fresh round of sanctions on Russian oil and gold.
Some analysts remain bearish on gold, believing that energy, industrial metals or real estate would be a better hedge, while others think the metal is now trading at an attractive rate.
Gold, commodities and real estate are among the asset classes that investors should consider as hedges against inflation, but knowing when to get out is key.
Investors in Asia Pacific will likely see the low interest rate environment as an opportunity to add risk assets in the hope that the economic recovery is on the immediate horizon, but the case for owning gold in portfolios remains strong, according to Jaspar Crawley, Head of Distribution, APAC, at The World Gold Council.
In our recent webinar in partnership with the World Gold Council, AsianInvestor spoke with a panel of experts about this unique asset class in the context of current developments and the outlook for the future.
Long considered a safe-haven in troubling times, gold can provide liquidity and protection in risk-off scenarios - especially during systemic events affecting multiple regions and industries. It also provides a cost-effective hedging function compared to other options. Yet investors often still have reservations when it comes to adding or increasing gold exposure in their portfolios.