Gold price explosion: How Switzerland is benefiting from the global hunger for precious metals!

Gold price explosion: How Switzerland is benefiting from the global hunger for precious metals!

On March 30, 2025, the price of gold reached a historic all-time high of $3,082 (approx. €2,858). This increase of almost two percent in the last week is due to geopolitical tensions and economic uncertainty reflected in global markets. Switzerland benefits significantly from this development, as it is considered a globally recognized hub for precious metal processing, although it does not have any significant gold deposits of its own. Up to two-thirds of the world's traded gold passes through Swiss borders, and four of the world's seven largest refineries, including Metalor, Argor-Heraeus, MKS PAMP and Valcambi, are based here.

The current situation is also characterized by the high demand for Swiss gold in the USA, especially after the announcement of new punitive tariffs on European imports. U.S. investors are seeking refuge in gold, generating demand that exceeds records set by the 2008 financial crisis and the COVID-19 pandemic. The continued rise in gold prices since 2000 reflects a long-term trend reinforced by constant geopolitical uncertainties.

Geopolitical factors and their effects

Gold has always been considered a safe haven in times of crisis. Geopolitical events such as wars, economic sanctions and political unrest have significantly increased demand for gold in the past. For example, the price of gold rose by 30 percent during the Arab Spring between 2010 and 2012, demonstrating the direct impact of such unstable situations on the market. Historically, gold has maintained or even increased its value during times of crisis, making it a popular investment option.

Current conflicts, such as the Ukraine conflict, have increased uncertainty in the markets and led to a renewed gold rush, particularly in the United States. Over the past two years, central banks around the world have purchased large amounts of gold, further strengthening the precious metal's role in the global financial order. Analysts see uncertainty and geopolitical tensions as key factors that could drive gold prices higher in the near future.

Switzerland: a center with challenges

Despite its strong position in the gold trade, Switzerland is also under pressure. Critics point out the problematic origins of the gold that ends up in Switzerland, often from questionable sources. Current legal regulations only require disclosure of the last seller, but not the entire supply chain. In this context, pressure is growing for stricter due diligence requirements to reduce corruption and human rights violations. For example, the Valcambi refinery sources gold from Dubai, which is viewed critically because Dubai is considered a transshipment point for illegal gold.

The international community is closely monitoring these developments as initiatives such as Swiss Better Gold seek to support small-scale mines to reduce the negative impact of gold mining. A reform of the Precious Metals Control Act was passed by the National Council in March 2025 and is now before the Council of States, which addresses Switzerland's responsibility in the global gold trade.

In summary, it is clear that Switzerland not only benefits from a sharp increase in the price of gold, but also has to overcome necessary challenges in terms of ethical standards and regulation in order to secure its long-term role in the precious metals market. The pressure for responsibility and sustainable practices will continue to increase in the coming years.