Loading ...Singapore Global Gold Hub Cometh – Launches Kilo Bar Contract And Gold ATMs
Singapore Becoming Global Gold Hub – Launches Kilo Bar Contract And Gold ATMs
Singapore continues its push to be a global gold hub. The new exchange traded Singapore kilobar gold contract will launch in less than two weeks – on October 13. The new contract is a 1 kilogramme physically deliverable gold contract for the Asian and global wholesale gold market.
In a joint statement, International Enterprise (IE) Singapore, Singapore Bullion Market Association (SBMA), Singapore Exchange (SGX) and the World Gold Council, announced the new contract yesterday.
The contract will be traded on SGX, the first wholesale 25 kilobar gold contract to be offered globally, and this is a collaboration among the four parties. The SGX is Singapore’s securities and derivatives exchange and clearing and depository provider.
This caters to the very high demand for physical gold in China and throughout Asia, which has increased significantly over the last decade.
This new gold contract differs from others in that as well as acting as a price discovery benchmark for 1kg gold bars in the Asian region, it has been specifically designed to actually deliver gold to large buyers, wholesalers and institutions, presumably including central banks.
Settlement of the contract is in gold 1kg bars and not in cash. A 1kg gold bar is 32.15 troy ounces.