Large gold delivery goes to France and UK

Less gold in Switzerland

The Federal Customs Administration has published Switzerland’s latest foreign trade figures. These figures also include the country’s gold exports and imports in October 2019. And once again there is some interesting information about the current demand for gold in various countries. First of all, Switzerland’s gold imports in October fell to 192.34 tonnes worth CHF 5.28 billion (EUR 4.81 billion). The decline is around 12 percent both compared to the previous month and to the previous year.


Dubai supplies

For the fourth month in a row, most of the gold from the United Arab Emirates is coming to Switzerland. In October it was 13.1 tonnes. Since June 2019, the Emirates have already delivered 110 tonnes of gold, presumably via Dubai, the main transhipment hub in the Middle East.  But the United Kingdom also delivered 10.5 tonnes, the first double-digit tonnage since last June. However, the largest quantity of gold between the UK and Switzerland continues to flow in the opposite direction. More about this below. Argentina (40 tonnes) and Peru (10 tonnes) once again produced a great deal of gold with low fineness.


Swiss gold exports up sharply

Switzerland’s gold exports have risen significantly compared with the previous year. Here it rose by 72.5 percent to 111.77 tonnes worth CHF 5.33 billion. Compared with the previous month, this represents only a slight increase of 1.2 percent. Great Britain received 48 tonnes of gold, 35 percent less than in the previous month. However, Switzerland has already delivered 332 tonnes of gold to the United Kingdom since June. As a reminder, a large part of the world’s ETF gold is stored in London – gold that the increasingly popular exchange-traded funds in the precious metals sector store to cover their share certificates.


France once again a major buyer

The fact that significant quantities of gold are migrating to France remains astonishing. In October it was 25 tonnes. Since August 2019 a total of 49 tonnes have been delivered to the neighbouring country. An unusually large amount of gold, more than 7 tonnes, also went to Turkey. By contrast, India (10 tonnes) and China (7 tonnes) again received comparatively small shipments of gold. China’s import volume shrank by 68 percent year-on-year and was 30 percent down on the previous month.


Swiss gold for the world

The product listed is by definition ‘gold, including unwrought platinised gold, for uses other than monetary uses (excl. powder)’. Background: Swiss refineries process a good half of all the gold demanded worldwide. In recent years, large quantities of gold have regularly migrated to Asia. With the increased price of gold and the greater demand for gold ETFs, some gold is now coming back. By way of comparison, in the period from January to October 2018 the Federal Customs Administration reported a total delivery of 401.85 tonnes of gold to China. In the same period this year, 372.8 tonnes of gold were shipped from Switzerland to the UK.