World's first wholesale kilobar gold contract to be offered in Singapore
Speaking at the annual London Bullion Market Association (LBMA) Bullion Market Forum in Singapore, Minister Lim said the contract "will introduce centralized trading and clearing of a physically- delivered gold contract in Singapore."
Comprising a series of six daily contracts, the contract will give physical users access to competitively-priced kilobars.
Asia's strong demand for physical gold is the key driver for the implementation of the contract. According to reports from the World Gold Council, while global consumer demand for gold has increased nearly 50 percent over the last decade or so, demand for gold in South East Asia has increased by more than 250 percent during the same period.
Commenting on the significance of the announcement, Minister Lim said, "with our close proximity to both demand and supply in Asia, I believe that Singapore is well-placed to support the bullion industry, with substantive mutual benefits." ■