TEHRAN (FNA)- A Singaporean official announced on Wednesday that the world's first exchange- traded, wholesale kilobar gold contract would be offered globally in September in Singapore.
"The contract will introduce centralized trading and clearing of a physically-delivered gold contract in Singapore," said Minister for Trade and Industry Lim Hng Kiang. Speaking at the Singapore-based Bullion Marker Forum of the annual London Bullion Market Association (LBMA), Lim stressed "comprising a series of six daily contracts, the contract will give physical users access to competitively-priced kilobars". Asia's strong demand for physical gold is the key driver for the implementation of the contract. According to reports from the World Gold Council, while global consumer demand for gold has increased nearly 50 percent over the last decade or so, demand for gold in South East Asia has increased by over 250 percent during the same period. Commenting on the significance of the announcement, Lim said, "With our close proximity to both demand and supply in Asia, I believe that Singapore is well-placed to support the bullion industry, with substantive mutual benefits." Ng Cheng Thye, president of Singapore Bullion Market Association (SBMA) said, "This contract will help to develop the gold market in South East Asia by creating greater liquidity and opportunities for growth." "The World Gold Council, Singapore Bullion Market Association, SGX and four banks -- JP Morgan, Scotia Bank, Standard Bank and Standard Chartered -- are supporting the launch," Lim said. Â Â Â Â