OCBC Bank will begin offering physical gold trading and storage services to institutional and private banking clients from June 10, responding to growing demand for bullion holdings amid persistent geopolitical tensions and economic uncertainty.
The move marks the bank’s entry into the physical gold market, expanding its precious metals offerings beyond existing paper gold investment products.
The service will be available to OCBC’s institutional clients as well as high-net-worth and ultra-high-net-worth customers of its private banking arm, Bank of Singapore.
Direct ownership of physical gold bars
Clients will be able to purchase either 1kg gold bars or larger 400-troy-ounce bars weighing approximately 12.4kg.
Each bar will be individually allocated and identified by a unique serial number, allowing investors to own specific gold bars directly rather than holding claims on a pooled reserve.
The new arrangement will also enable Bank of Singapore clients who previously conducted physical gold transactions through a United States-based entity to carry out those transactions through OCBC. The bank did not disclose the identity of the US entity.
According to Bank of Singapore, gold bullion holdings under the previous arrangement have increased by more than 40 per cent since the end of 2025, with ultra-high-net-worth clients accounting for the majority of the assets.
Rising preference for locally held bullion
The bank said clients have increasingly preferred to hold physical gold in Singapore and transact through locally based institutions amid heightened geopolitical risks and broader macroeconomic uncertainty.
OCBC head of global markets Kenneth Lai described the bank’s physical gold trading and custodial capabilities as a strategic expansion of its market-making activities in precious metals.
“While we have started with institutional and private banking clients, over time we are looking to expand to other client segments and offer them a comprehensive range of physical gold investment and hedging solutions,” he said.
OCBC already provides access to paper gold and silver investments through its Precious Metals Account, which allows transactions from as little as 0.01 ounce.
Investors can also gain exposure to gold through the LionGlobal Singapore Physical Gold Fund, the LionGlobal Singapore Physical Gold exchange-traded fund (ETF), and selected investment-linked insurance products offered by Great Eastern, in which OCBC holds a majority stake.
Singapore strengthens position as gold trading hub
Prior to OCBC’s entry into the market, UOB was the only local bank offering physical gold and silver trading services to investors.
In March, the Monetary Authority of Singapore and the Singapore Bullion Market Association announced initiatives aimed at strengthening Singapore’s position as a global gold trading centre.
The plans include developing additional gold-related capital market products to improve liquidity and price discovery, establishing internationally aligned standards for vaulting and logistics, and creating a clearing system to support over-the-counter trading of 400-troy-ounce and 1kg gold bars.
Retail investors in Singapore already have several avenues to invest in gold, including exchange-traded funds, unit trusts and paper gold products.
Those seeking direct ownership may also purchase gold bars and coins from bullion dealers and banks, although storage and insurance costs may apply.
