Hong Kong’s Airport Authority is taking significant steps to enhance its status as a leading global hub for precious metals, unveiling plans to expand its gold vault capacity from 150 tons to an ambitious 1,000 tons.
On October 21, the authority announced that it is finalizing plans for the expansion of the Hong Kong airport’s precious metals depository, which is already nearing full capacity due to surging demand. In contrast, a new facility near Singapore’s airport has the ability to store 500 tons of gold and 10,000 tons of silver, Caliber.Az reports citing foreign media.
The authority stated, “With an initial capacity increase to 200 tons at the existing facility, the vaulting capacity will eventually expand multiple times up to 1,000 tons, with further growth potential.” Since its establishment in 2009, the depository has provided secure storage and physical settlement services to central banks, commodity exchanges, bullion banks, precious metal refineries, and issuers of exchange-traded funds.
While Hong Kong has a rich history in gold trading spanning over a century, the industry has struggled in recent decades due to a decline in trading activity. In contrast, Singapore has made significant strides, notably with the recent establishment of a six-storey vault by Silver Bullion, which occupies 16,700 square metres (180,000 sq ft) near Changi Airport.
In outlining its expansion plans, Hong Kong’s Airport Authority stated it would collaborate closely with the government and market stakeholders to ensure that the new facility serves the “best interest of the economy.” Vivian Cheung Kar-fay, the acting CEO of the authority, noted a significant increase in demand for gold storage, trading, and delivery in Hong Kong in recent years. She expressed confidence that the authority’s depository would be an “ideal facility” for global investors.
Last week, Chief Executive John Lee Ka-chiu presented his third annual policy blueprint, which included initiatives to develop storage facilities and elevate Hong Kong’s gold trading market to an international level, reinforcing the city’s position as a global financial hub. Financial Secretary Paul Chan Mo-po remarked that this move demonstrated that Hong Kong had set the right development goals, devised a solid strategy, and was making steady progress toward these objectives.
He anticipated that it would generate “new growth momentum,” expedite Hong Kong’s economic advancement, and ultimately contribute significantly to the nation’s broader development. Chan highlighted that the city already ranks highly on a global scale for gold import and export volumes, attributing this success to its “strategic location” between mainland China and India—two major consumer markets for gold. He also suggested that the city consider expanding into other areas of commodity trading, such as non-ferrous metals, which include copper, aluminum, and lead.
By Naila Huseynova