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.