Investments in precious metals are more popular in Switzerland than those in real estate or stocks. Banks are also benefiting from this, according to a new study.

Precious metals are the most popular asset class in Switzerland, and for «Mr. and Mrs. Switzerland», they rank as a form of investment just ahead of real estate, but clearly ahead of stocks.

Per capita, the Swiss population currently owns an average of just under 95 grams of physical gold, which in terms of quantity, corresponds to about one bar of chocolate or, in monetary terms, around 5,400 Swiss francs, according to this year's Precious Metals Study 2022, conducted by the gold dealer Philoro with the University of St. Gallen. Gold jewelry was not taken into account.

A Sensible Investment

According to the study, over two-thirds of the Swiss population consider precious metals to be a sensible investment option. Overall popularity in Switzerland has increased further over the last three years, except in the French-speaking region of the country of which only half rate it as a sensible investment. 

Precious metals are valued across all age groups and are most popular among the 30 to 39 age group, particularly men. But the asset class also comes off surprisingly well among younger men and women between 18 and 29. The study shows men are not only more drawn to precious metals than women, but more likely to invest more money.

More than half of all respondents said they would likely invest in precious metals if a larger amount of money were freely available. Real estate was favored by just over half, while stocks, on the other hand, are only mentioned by less than a third.

Only around one in four people mention savings accounts or investment funds, with cryptocurrencies well behind with less than one-fifth mentioning Bitcoin & Co. Investment vehicles such as derivatives at 4 percent rank at the bottom of the pile. 

Crisis Protection

Among precious metals, the Swiss have a clear preference for gold at 49 percent. Well ahead of silver (12.2 percent), platinum (10.6 percent), and palladium (7.2 percent).

Investments are made primarily for reasons of stability and security, with a third of respondents seeing precious metals as protection against inflation. For just over a quarter, wealth accumulation is a reason for investing in precious metals, and nearly one in three intends to invest in precious metals in the coming twelve months.