Degussa GoldHandel exits Singapore after two years
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Two years after opening its first precious metals store in Asia, on Orchard Road, German company Degussa GoldHandel has decided to close it at the end of the month.
Its website carried the surprise one-sentence announcement.
When it opened the branch in October 2015 as part of an international expansion strategy, the company said it saw Singapore as an “ideal market”.
Near Dhoby Ghaut MRT station, the 93sqm Degussa Singapore store was run by Degussa Precious Metals Asia, offering branded precious-metal bars, coins and collectibles, plus safety deposit boxes and other secure storage.
Degussa GoldHandel has 10 bullion product stores in Germany as well as branches in Spain and Switzerland.
Degussa Precious Metal Asia last year had a net loss of S$2.8 million (US$2 million) on revenues of $59 million. At the same time, Degussa Singapore’s total liabilities exceeded total assets by $4.35 million.
World Gold Council (WGC) data shows overall gold demand in Singapore this year totalled 17.1 tonnes, compared to 18.1 tonnes last year, while the demand for gold bullion has dropped to five tonnes from 5.9 tonnes.
Questions & Answers
Q.What reasons led Degussa GoldHandel to close its Singapore store?
What reasons led Degussa GoldHandel to close its Singapore store?
Degussa Precious Metals Asia, which ran the store, reported a net loss of S$2.8 million last year on revenues of $59 million. Also, Degussa Singapore's total liabilities exceeded its total assets by $4.35 million.
Q.How long was the Degussa GoldHandel store open in Singapore?
How long was the Degussa GoldHandel store open in Singapore?
The German company's first precious metals store in Asia, located on Orchard Road, was open for two years. It opened its branch in October 2015 and is set to close at the end of the current month.
Q.What products and services did the Degussa Singapore store offer to customers?
What products and services did the Degussa Singapore store offer to customers?
The Degussa Singapore store provided branded precious-metal bars, coins, and collectibles. It also offered safety deposit boxes and various other secure storage options for customers' valuables.
Q.What was the broader market trend for gold demand in Singapore when Degussa closed?
What was the broader market trend for gold demand in Singapore when Degussa closed?
Overall gold demand in Singapore this year totalled 17.1 tonnes, a decrease from 18.1 tonnes last year. The demand for gold bullion specifically dropped to five tonnes from 5.9 tonnes in the previous year.
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