Refining gold- another success story in Switzerland

Although there are no gold mines in Switzerland, four of the world’s biggest gold refineries are in Switzerland-  and it is estimated that two thirds of the world’s gold is refined in the country.Refining gold- another success story in SwitzerlandDuring World War Two, because of the large amount of gold that was stored in Switzerland, the banks decided to set up their own refineries, producing bars.”

Today the banks do not own the refineries anymore, but gold refining and production of gold bars are thriving.

In 2011, the latest year for which figures are available, more than 2,600 tonnes of raw gold was imported into Switzerland, with a value of £64 billion.

Gold today is around £ 1,060 ($1,500)  an ounce. As there are 32 troy ounces in a kilogram of bullion, one 12.5kg bar alone is worth £424,000 ($680,000).

Despite all the talk of a global economic downturn, or perhaps because of it, the market for gold is booming as gold is a commodity for uncertain times.

Gold is a kind of investment that you buy and keep aside. It’s there for a particular reason, crisis, wartime, during those times it is absolutely valuable, wherever in the world.

Mr Barkhordar has been involved in developing the London Bullion Market Association’s Responsible Gold Guidance (LBMA),

The scheme requires refineries recognised by the LBMA “to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering and combating terrorist financing practice”.

The Swiss trade statistics do not tell you where the gold comes from that is imported to Switzerland. The statistics do not include the origin nor the destination of the gold that is traded through Switzerland.

Although buying gold is not really an option for most people, whose savings (if they have them) are likely to be invested in a house and a pension, and despite the fact that there are other safe commodities around such as platinum or even oil, only gold has kept us in thrall for thousands of years.

“Gold has a very special role, I don’t know if someone can explain what that special role is – but it’s vey special.  Of course, you can’t eat gold, nobody will die without gold. But it’s magical… what do you want me to tell you, it’s magical.” said Mr Barkhorder.

January 10, 2013  Tags: , , ,   Posted in: Business Win, Exporting Businesses, Global Business, Uncategorized

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