|Investing in Gold from your Swiss bank account|
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Switzerland and gold
Switzerland is the major world market for gold. It is estimated that 1,000 tonnes of recently extracted quality gold primarily from South Africa and Russia finds its way to Switzerland every year.
In the 1930s, Zurich had already established its place as the world leader in gold bullion trading. The founding in 1968 of the Zurich Gold Pool, a buying cartel created by key Swiss banks, is what gave Switzerland its dominant financial position in the market.
Switzerland knew how to break into the market because it didn’t have any handicaps in any area, which wasn’t the case for its competitors. Switzerland has an excellent banking system, the currency is totally open and convertible, there are no restrictions on owning gold privately and anonymously, the importation and exportation of precious metals is open, interest rates are low, banking practices are sound, and there are no taxes levied on precious metal investments.
Switzerland is the largest gold market in the world. There are six different ways to invest gold from your Swiss bank account:
1. Buying physical gold
You can buy gold bars and keep them in your possession. The bank charges a flat rate for delivering the actual gold.
You can deposit your gold bars in a safety deposit box in the bank. Other than the cost of renting the safety deposit box, problems may arise when you try to resell. The buyer may ask you to have an expert confirm, at your own expense, the quality of the gold. To avoid any additional costs, you should request that the bars be certified and ensure that the bank that sold it to you will let you sell it back at a later date, no questions asked.
3. Precious metal account
Precious metal accounts are an attractive alternative to actually buying gold. Through the means of a contract, you own part of a gold bar. The bank is obliged to give the amount and quality of gold you have at your request. Precious metal accounts also prevent you from paying any manufacturing and delivery costs. Annual fees for keeping the gold are nevertheless still billed by the bank. You can carry out transactions by telephone and receive a regular statement similar to what you receive for your stocks.
4. Buying shares or investing funds in the gold industry
You can buy shares in companies that extract, process and buy and sell gold. Specialized investment funds allow you to diversify the countries and sectors of your investments based on an optimal return/risk factor.
5. Gold-based products
You can invest in gold and still benefit from the leveraging effects of term agreements and options. Swiss banks offer numerous gold-based products. The way they operate is very similar to that of products sold on the stock market.
Since ancient times, money has meant power. Contrary to gold bars, which are valued according to their weight in gold, many factors determine the value of a coin, such as how rare it is, the number of coins that were originally made, or the age and condition of the coin. Numismatics interest a limited circle of people who are fascinated by history and art. Swiss banks are leaders in this market and can give you amazing suggestions and brochures on this topic.