The Swiss hoard so much gold

In the face of the Corona crisis, long lines have formed in front of the counters of the gold traders. But above all, rich Swiss people were already fans of the precious metal.

Swiss investors are bunkering a total of 920 tons of gold in their cellars and safes and lockers. Only real estate is more popular with local investors, as the University of St. Gallen (HSG) and gold trader Philoro write based on a 2019 survey.

The likelihood is high that these numbers have risen somewhat since then: Already in March, when the coronavirus pandemic hit Switzerland with full force, people in Zurich were lining up for gold bars like reported.

Enthusiastic realms

The so-called precious metal atlas from Philoro shows that this is not a new phenomenon. Well-earning Swiss people thought buying precious metals was a good idea a year ago. The survey was carried out at the beginning of April 2019, when “social distancing” was still a foreign concept to the vast majority.

Even back then, those who earned at least CHF 10,000 a month on net had a 71 percent probability of precious metals being a “sensible investment,” the study says. Even with households that had less than 4,000 francs a month available, 53 percent agreed.

A good deal

However, people who had the necessary income surplus for gold bars wanted to actually buy a year ago. 43 percent of those with a monthly household income of at least 14,000 francs planned to buy gold in 2019.

After all, if the data from Philoro are correct, 160 tons of gold were bought in Germany last year. And these buyers – one in five Swiss nationals overall – have done good business: This year alone, the price of gold has already increased by more than 10 percent and analysts expect a further increase.

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Delayed delivery

However, if you want to buy gold bars or coins to take the possible jump from just under $ 1,700 an ounce to the forecasted $ 1,800, you could face difficulties. With air traffic, the international supply chain for the precious metal has come to a standstill, which means that it can no longer be delivered everywhere.

Instead, these investors are left with exchange-traded gold products that understand the price of the metal and are also easier to sell. If the end of human civilization fails to materialize and the economy picks up again, the queues in front of the gold traders will become shorter again – nevertheless, an exchange product is easier to sell than the coins and bars that have now been hoarded.

Will UBS and Credit Suisse merge after the Corona crisis?

  • Yes, because they will not be able to bear their high costs on their own.

  • Yes, there will be cooperation in some areas.

  • UBS will swallow Credit Suisse.

  • Credit Suisse will swallow UBS.

  • No, both banks will still be independent in five years.


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