A New Era for Hong Kong’s Gold Trading

Hong Kong is making progress toward becoming a leading international gold trading hub, but experts assert that significant improvements are needed to effectively compete with rivals like Singapore and Dubai.

While the Hong Kong government has begun promoting gold trading, a more holistic strategy is required. Joshua Rotbart, Managing Partner of J. Rotbart & Co., noted that Singapore has spent the last 12 years strengthening its gold industry by providing land for vaults and various incentives. In contrast, Hong Kong’s gold market has faced challenges since mid-2019, largely due to social unrest and the repercussions of the COVID-19 pandemic.

However, recent plans to expand the airport’s gold vault capacity from 150 to 1,000 tonnes indicate a positive direction. This initiative, coupled with support for private storage facilities, could bolster Hong Kong’s position in the global gold market. To enhance its standing, collaboration among government agencies, industry stakeholders, and private investors is essential. By creating a robust ecosystem that attracts international traders, central banks, and hedge funds, Hong Kong can strengthen its role in the global gold trading landscape.

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