Combined with falling gold prices, Nomura's analysts said "Chinese consumers' initial reaction is likely to [be to] avoid gold consumption before shifting towards gold investment as an alternative asset class."
Reports last month showed China's gold imports from Hong Kong were at a ten-month high with 97.242 tons imported in September. The decision to choose Singapore as an Asian headquarter over Hong Kong, which arguably has better access to the Chinese market, was due to the nature of the business, Wrzesniok-Rossbach said.
"Ninety-seven percent of our business is really with retail customers," whereas the Hong Kong market is "driven by wholesale business." But he did not rule out venturing into Hong Kong in the future.
Gold's woes may not be over, as comments from the Fed last week suggested an interest rate lift off may be closer than previously thought. Higher interest rates in the U.S. will undoubtedly impact the appetite for gold, according to analysts.
Tariq Ali, investment strategist at Standard Chartered told CNBC by email, "We expect gold prices in USD to gradually head lower into 2016" as the U.S. begins its interest rate normalization. Demand for gold "is likely to wane further as the Fed hikes rates" because "higher real (adjusted for inflation) yields elsewhere will likely reduce the incentive to hold non-interest paying gold," wrote Ali.
But Wrzesniok-Rossbach disagreed that a Fed lift off, and a stronger greenback, would cause further dips in gold demand.
"Public opinion is often just looking at the dollar price, in all the countries," he said, adding that in markets where gold has proven its role as a safe haven, a change in the precious metal's dollar price will not affect investment appetite, particularly because in many of these markets, such as China and Germany, locals are unable to invest in dollars.
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"For them, an investment in gold is also an investment against the depreciation of [their own] currency," he said.
David Lennox, a resource analyst at Fat Prophets, told CNBC over the phone that a strong dollar would have bigger impact on gold production than consumption. Lennox explained that there was an upside from a strong dollar for producers because they can sell gold in dollar terms and see higher returns when they convert their revenues back to domestic currencies.
Degussa has offices in Germany, Switzerland, Spain, and now Singapore. Wrzesniok-Rossbach said, there are plans to open a branch in one of the biggest bullion markets - London - at the end of November.
Degussa, which started in 2010, had a turnover of approximately 1.3 billion euros ($1.4 billion) last year and this year projects turnover in the range of 1.6 billion euros, with 30 percent to 50 percent growth in individual months, added Wrzesniok-Rossbach. Part of that growth was driven by an active online business in Europe.
"If you're a startup and you start from zero, in those four years, you have great growth numbers every year," he noted.