In April 2020, GoldNews.com.au came under new management, articles published before this time, such as the below, may not reflect the views or opinions of the current GoldNews.com.au team.

Switzerland is known for producing quality products, if its Swiss made then you expect it to be the best thing in the world. There is are Swiss watches, Swiss cheese, Swiss chocolate and Swiss gold. A lot of people don’t know that gold is the biggest export product in Switzerland but it has been since the 1970s.

Because of its financial system, Switzerland became the centre of the international gold trade. Switzerland imports about 70% of the world’s gold or 70 billion dollars worth of gold. It purifies the gold, casts it into bars or coins of the highest standard. Switzerland has the best refineries in the world and 90% of the gold bullion cast in the country meet the Good Delivery standard. This is a set of rules issued by the London Bullion Market Association (LBMA) that prescribe the characteristics of gold and silver bars used in the wholesale London bullion market as well as requirements for making the LBMA list of approved refineries. Good Delivery gold bars are known for their size and their purity.

The world’s largest gold refineries are located in Switzerland. There are Valcambi, Argor-Heraeus, Metalor Technologies and PAMP. This refineries might be located in Switzerland but everything about them is internationalised. Three of the four refineries are located a few kilometres from each other. Valcambi, Argor-Heraeu and PAMP are located in what is known as the Swiss golden triangle. They were positioned to be as closer to the Italian jewellery market.

Gold accounts for a quarter of the total number of goods exported by Switzerland. This means that gold plays a very important role in the economic stability of Switzerland. Whilst gold exports came to $70 billion, the famous Swiss watches only amounted to $20 billion. A large percentage of the gold that is refined in Switzerland goes to the state reserve and to foreign reserve banks.

Switzerland currently is the 7th country with the largest gold reserves. Switzerland is a small country with a population of about 8.42 million. Taking into account the gold reserve per capita then it means there are 123,5 grams of gold for every inhabitant of the country. This is more than what the US and Russia have.

The Swiss value gold. It is viewed as an effective saving tool which most people buy. In Switzerland like in most countries, gold is viewed as a long-term investment that is effective at protecting people against financial risks brought on by geopolitical and economic problems. In 2018, Switzerland was ranked second for demand per capita and the price of gold has increased by 11% in Swiss francs.

Switzerland is one of the most stable and most prosperous countries in the world. Income levels are higher than they are in most developed world. Switzerland is definitely a wealthy country and gold plays a significant role in the country’s welfare.

Gold is not only an object of financial trade but it is used in many industries based in Switzerland. The growing demand for gold, especially high purity gold is beneficial to Switzerland’s economy. With gold being the key element of the country’s economic system, Switzerland can look forward into the future with confidence that they can weather global economic storms that are always brewing.

Sources:
https://en.m.wikipedia.org/wiki/Good_Delivery
https://www.bullionstar.com/gold-university/swiss-gold-market

Gold News Australia