The Record-Breaking Gold Transfer, Switzerland is known around the world as a financial powerhouse,
and its gold exports are no exception.
Topics
524 tons of gold sent to China
The Surging of the Swiss Gold Exports
Assessing the Impact of Rising Gold Prices
Growing Demand for Swiss Gold
524 tons of gold sent to China
Last year, Switzerland sent 524 tonnes of gold to China – the most since 2018.
This impressive figure highlights just how much demand there is for Swiss-made precious metals in China and beyond.
The export figures reveal that Swiss companies have been able to capitalize
on increased Chinese demand for their products over the past few years.
In 2020 alone, Switzerland exported nearly three times more gold than it did in 2019 – an increase of almost 200%.
The fact that these shipments were predominantly destined for China further reflects this trend:
last year saw more than two-thirds (67%) of all Swiss-exported gold heading
eastward toward one of the world’s largest markets.
It appears that Chinese buyers are looking to take advantage not only of Switzerland’s renowned expert
when it comes to producing high-quality metals but also to its competitive pricing structure
compared with other countries such as India or South Africa which can be far pricier
due to import taxes applied by those nations on certain commodities like Gold.
Furthermore, many experts believe this surge in imports may signal
a shift away from traditional investment vehicles
such as stocks and bonds towards physical assets like bullion
which could potentially offer greater security during uncertain economic times.
Overall, these latest export figures demonstrate an encouraging level of
confidence among international investors
regarding Swiss-made goods – particularly within Asia,
while at the same time highlighting potential opportunities available
if you choose to invest your money wisely into physical assets rather than relying solely upon paper investments.
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Switzerland is renowned for its gold exports and the news that they surged
to multi-year highs in 2022 will come as no surprise.
According to Swiss customs data, countries such as China, Turkey, Singapore, and Thailand
saw a significant increase in imports of precious metals from Switzerland over the last year.
The main factor behind this surge was low prices resulting from financial investors
selling off their gold holdings due to rising interest rates.
This released large amounts of metal onto the market which allowed it to be purchased
more cheaply by those looking for jewelry or small bars,
mainly located in Asia and Middle Eastern markets
where retail demand is higher than elsewhere.
In addition, economic instability also drove up demand
with many seeing gold as a safe investment option,
particularly true in Turkey where inflation has been rampant over recent months/years.
As such we can expect high levels of Swiss export activity continuing into 2021
given these factors remain unchanged throughout this period,
something that should provide an important boost for both local businesses involved
within the industry and Switzerland’s economy overall too!
Assessing the Impact of Rising Gold Prices
It appears that the Indian bullion market is facing a downturn in gold shipments from Switzerland.
Last year, only 224 tonnes of gold were sent to India compared with 507 tonnes in 2021.
This decline can be attributed to the surge in prices of gold as investors anticipate an end to interest rate hikes
and start buying again after November’s low at $1,615.59 per ounce.
China’s demand for gold may remain strong
due to its economic recovery following COVID-19 restrictions being lifted
but it looks like India won’t be so quick on its feet when it comes to bouncing back up again
independent analyst Ross Norman believes this could take some months
yet before they show signs of improvement as they are known for being bargain hunters
who prefer not spending too much money on precious metals
such as gold until prices become more reasonable once more.
It will certainly be interesting how things progress over the coming weeks
and months ahead when we see if indeed there will be any change or resurgence
within this sector for one of the world’s biggest bullion markets – time will tell!
Growing Demand for Swiss Gold
Swiss gold exports have been on the rise over the past few years,
with a noticeable increase in 2020. The trend has continued into 2021 and 2022,
as evidenced by Swiss customs data.
China and India are now major importers of Swiss gold products.
In 2022 alone, Switzerland exported 1,565 kilograms of gold to China,
nearly four times more than what was exported in 2020 (478 kg).
Similarly, impressive growth can be seen for other destinations
such as Hong Kong (45 kg), India (224 kg), and Turkey (188 kg).
This is compared to much lower figures from earlier years:
30kg for Hong Kong in 2020; 26kg for India; 77kg for Turkey –
all significantly lower than what was observed this year.
The monthly export numbers also tell an interesting story about
how demand fluctuates throughout the year,
particularly between December 2021/22 when exports
almost doubled compared to November 2021/22 respectively.
For example, December 22 saw 150 kilograms being shipped out
while only 129 were sent out during November of that same year.
Overall, it’s clear that there is a growing appetite among buyers around the world
who are looking towards Switzerland’s vast reserves of quality precious metals
like Gold which will continue driving up its export numbers over time.