Switzerland remains a major gold-trading centre
Switzerland is closely linked to the gold trading
© by-studio – stock.adobe.com
Switzerland’s global reputation as one of the safest and most secure locations to store investment gold is based upon the soundest credentials: An independent sovereign nation with a stable, democratic political system; a history of non-aligned neutrality; a long-established economic relationship with gold and other precious metals; a favourable geographic location at the heart of Europe; and so much more.
Despite this, there has been occasional media comment expressing concerns to the effect that gold is now ‘flowing’ out of Switzerland in favour of Hongkong / China. The source of such reports seems to be a few journalists, plus a handful of industry insiders, who appear to be looking to ramp up investor interest in gold for short-term commercial purposes.
Such reports cite recorded amounts of gold leaving Switzerland – in other words, gold export totals. However, the one thing these stories have in common is they make no mention of Swiss gold imports – presumably because acknowledging these figures would seriously undermine the premise of their argument.
In an interview for Kitco News , Jeff Christian, Managing Partner for the CPM Group, explains the facts of the matter. He simply points out that no one can claim gold is leaving Switzerland without quoting both import and export totals. This data can be used to arrive at a net total which then gives a true insight into gold market flows. As most investors already know, and this interview confirms, a tremendous amount of gold is now being purchased around the world, and much of this is still being stored as investment holdings in Switzerland.