Switzerland's gold exports reach highest level since 2016

In August, Switzerland Most gold exported since the end of 2016, according to figures from Swiss customs. Much of that gold was destined for the United Kingdom, because there are many banks there that hold the gold reserves of ETFs. As a result, Switzerland's exports to the United Kingdom even reached the highest level. highest level in seven years. In August, gold exports to the United Kingdom rose by 24% to 112.5 tonnes. As a result, the United Kingdom accounted for almost two-thirds of total Swiss exports.

Due to the rise in the price of gold and the fall in interest rates, investors have sought refuge in the precious metal in recent months. Gold ETFs, which usually keep their stocks in London, also benefit from this. To replenish those stocks, banks that manage that gold have to import large amounts of precious metal. They usually do this in Switzerland, where precious metals from different countries and new offerings from the gold mines come together.

More demand for investment gold

Due to the increase in Gold price interest in the precious metal in markets such as China and India has waned somewhat. As a result, relatively little gold has been going from Switzerland to Asia in recent months. Much more precious metal finds its way to Western countries, where interest in Buy gold increases at a higher price. This is also reflected in the figures, as inflows of gold ETFs in August reached their highest level since 2013. Among other things, GLD, the largest Exchange Traded Fund for gold, keeps its stock of bullion in London as well.

Another reason why so much gold is suddenly going to London is the unrest in Hong Kong. Investors and high-net-worth individuals do not like uncertainty and in some cases decide to increase their gold holdings. move to Singapore or Switzerland. The United Kingdom can also benefit from this. Despite Brexit, London remains an important financial centre. Moreover, the financial heart of the City of London has a fairly autonomous status and will therefore be less affected by a possible Brexit.

Switzerland exported a lot of gold in August (Source: Bloomberg)