The pandemic is sparking a rush to buy physical gold. Wealthy Swiss have always been the most fervent devotees of stowing the precious metal.
Swiss investors are hoarding 920 tons of gold in cellars, safes, and bank deposit boxes, according to a study (in German) published last year by the University of St. Gallen and gold dealer Philoro. The sum has in all likelihood surged during the pandemic, which sparked long lines of potential buyers at showrooms selling physical gold, as finews.com reported.
The precious metals «atlas» compiled by Philoro shows that the rush to gold isn't new: affluent Swiss investors have long mixed into their portfolios. Those with a monthly income of 10,000 Swiss francs ($10,265) were likely with a statistical probability of 71 percent to own physical gold as a «sensible investment».
Disrupted Supply Chain
Even low-earners, households with less than 4,000 francs monthly income, agreed, with a probability of 52 percent. However, last year gold drew primarily buyers with considerable disposable income to splash out on gold bars: 43 percent of households with at least 14,000 monthly income planned to buy the precious metal.
That puts the total volume of gold sold in Switzerland at 160 tons last year. And the buyers – which add up to one in every five Swiss residents – saw their holding climb more than ten percent in value since then, with further gains forecast.
Those looking to buy gold bars or coins now to get in on the expected gains – analysts predict the price will climb to $1,800 per ounce from roughly $1,700 currently – will run into difficulties. Limits on air travel are also threatening supply chains for precious metals like gold.
