SINGAPORE Deutsche Bank (DBKGn.DE) is opening a gold storage vault in Singapore that can hold up to 200 tonnes of the metal as it looks to capture surging demand for bullion in Asia.
Gold prices are near a two-year low and down 17 percent for the year, after 12 straight years of annual gains. A sell-off in April released years of pent up demand, especially in Asia, stretching regional supply and pushing spot premiums to records.
Singapore last year also excluded gold traded for investment from sales tax liability, prompting even more interest in buying and storing bullion in the city-state.
"This offering will encourage a significant development in a Singapore-based precious metals market," Ronan Donohoe, Deutsche Bank's global head of metals and dry bulk trading, said in a statement.
Deutsche Bank already has precious metals trading, financing and physical distribution operations in Singapore. The bank said the new vault would be one of the largest physical holdings of gold in the city state.
It will open the storage facility at the Singapore Freeport, a warehouse for items such as precious metals, art and wine located at the airport. (Reporting by A. Ananthalakshmi; Editing by Tom Hogue)