SGV gold vaults

Investment Analysis Clubs Macro Economic Trends and Risks
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Now operational:

The Shanghai Gold Exchange (SGE) is establishing strategic offshore gold vaults in key global financial centers, including Hong Kong, Singapore, Zurich, and Dubai..

…These aren’t merely storage facilities but sophisticated physical gold delivery and trading hubs designed with advanced security systems and technological infrastructure. The Hong Kong facility, operated by Bank of China (Hong Kong) Ltd, became the first operational offshore vault in 2025, marking a pivotal moment in the SGE’s international expansion strategy.

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I’ve always been puzzled why countries don’t keep possession of their own gold reserves.

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I can think of a few reasons

  1. Keeping it safe. After WW2 there weren’t many safe places and then there was the cold war.
  2. Gold is bulky to move around for payment. Having it all in one place makes it easier to reallocate.
  3. Payment to lease the gold. Much easier if it’s in one place.

There may be other reasons that I can’t think of.

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Mostly because they don’t trust themselves. At any time, someone could be elected (either truly democratically or via subterfuge actions, war, etc) who will not properly care for it. #understatement

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