Singapore: The stash of gold, silver and gems stored in the vaults and safe deposit boxes of Malca-Amit in Singapore has jumped almost 90% in the past year as wealthy investors seek a refuge in a world of negative interest rates, stagnating economies and political uncertainty.

The company’s facilities in the city-state are about 70% full and more than 90% of the hoard comprises precious metals, according to Ariel Kohelet, managing director of Malca-Amit Singapore Pte, a logistics and storage provider, without giving specific figures. Revenue has grown at least 45% in 2016 from a year earlier, he said in an interview last week.

Gold has rallied 26% this year and silver’s up 37% as negative interest rates, the UK vote to leave the European Union and the US presidential race spur investors to protect their wealth. Billionaire bond-fund manager Bill Gross has said there’s little choice but gold and real estate given current bond yields, while hedge fund manager Eric Mindich almost tripled his options bet on a bullion-backed exchange-traded fund in the second quarter.

“We’re seeing a trend where high net-worth individuals are looking to diversify their portfolio into tangible assets like precious metals, precious stones," said 41-year-old Kohelet, who’s been with the company for 12 years. “This is mostly to preserve and protect their wealth. They’re looking into places like Hong Kong and Singapore as places they deem to be safe."

Money printing

A raft of investors have underscored the attraction of gold in a world where central banks are trying to revive growth by buying bonds and keeping their economies flush with cash. While billionaire George Soros cut his holding in Barrick Gold Corp. in the second quarter, he bought shares in the SPDR Gold Trust. Paul Singer, David Einhorn and Stan Druckenmiller have all expounded reasons this year for owning gold.

Some are not sure prices will keep rising, seeing more increases in US borrowing costs, which will lift the dollar and tarnish a metal that pays no interest. The probability of three rate hikes through end-2017 means there’s little room for rallies, according to Luc Luyet, a currencies strategist at Pictet Wealth Management. While Goldman Sachs Group Inc. likes gold as a strategic hedge, its base case is $1,300 an ounce, less than $1,338.50 traded on Tuesday.

In Asia, where more than half the world’s bullion is consumed, people have always invested in gold, according to Kohelet. “If you take China and India, it’s part of the culture and tradition to put some aside," he said.

Malca-Amit has 1,000 square feet of space at the Singapore FreePort, a free trade zone, capable of storing 700 metric tons, while another warehouse at Changi airport’s airfreight center has a capacity of 200 tons, Kohelet said. In May, the company started a safe depository service called UltraVault and opened new facilities located in the central business district, he said. Bloomberg