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The gold vrenelle in the desk drawer (or better: in the safe!) has rarely been as valuable as it is today – and the hunt for gold records will continue. At least that’s what Heraeus, the world’s largest precious metals dealer based in Hanau, Germany, and a major gold smelter in Mendrisio TI, predicts.
At the beginning of December, gold hit an all-time high of $2,135 per ounce. Heraeus now predicts the price could rise as high as $2,250 in the new year. This will be the new all-time record.
But be careful: This is not a free pass to invest in gold without ulterior motives. Experts expect a new record hunt, but the price of gold is volatile. It can also drop by 20 percent quickly. Heraeus states “a range between $1,880 and $2,250 per ounce” for the gold price.
Gold jewelry is in fashion
The reason why experts are generally optimistic about developments in gold prices is due to the interest rate environment: Inflation is on the decline, so it is unlikely that central banks will raise interest rates further in the new year, or even start reducing them. first time. When money pays less interest, interest-free investments such as gold become relatively more attractive.
High demand causes prices to rise: Central banks invest in gold bars on a large scale. In these uncertain times (key words: Middle East conflict and Ukraine war), private investors are also flocking to gold ETFs (Exchange Traded Funds). These are traded on the stock exchange and are tied to the price of gold. Additionally, the demand for gold in the jewelery industry is increasing in India.
Golden Switzerland
High gold prices are good news for Switzerland. Not just because of the millions of gold vreneli stashed away in desk drawers and bank vaults across the country. But above all because Switzerland is a global gold center par excellence. Four of the world’s seven largest gold refineries are in Switzerland. They process up to 70 percent of the gold traded worldwide. The higher the price, the better the capacity utilization of Swiss gold refineries.
Four of the seven largest gold refineries in the world are located in Switzerland and three in Ticino. Together, they process, according to estimates, 40 to 70 percent of the gold traded worldwide. The reason they settled here, of all places, is due to Switzerland’s financial and political stability. But it is also due to its geographical proximity to northern Italy, which has been the epicenter of the global jewelry industry for decades.
Oil, grain and gas are also traded on a large scale through Switzerland as a raw material centre, without physically crossing the national border. The situation is different for gold: It is brought to Swiss refineries from gold mines as raw gold or as scrap gold, further processed and re-exported. Besides the jewelry industry, buyers include central banks, technology companies (gold is used in smartphones or computer hard drives) and private investors who hold some of their assets in gold bars.
Four of the seven largest gold refineries in the world are located in Switzerland and three in Ticino. Together, they process, according to estimates, 40 to 70 percent of the gold traded worldwide. The reason they settled here, of all places, is due to Switzerland’s financial and political stability. But it is also due to its geographical proximity to northern Italy, which has been the epicenter of the global jewelry industry for decades.
Oil, grain and gas are also traded in bulk through the raw material center Switzerland, without physically crossing the national border. The situation is different for gold: It is brought to Swiss refineries from gold mines as raw gold or as scrap gold, further processed and re-exported. Besides the jewelry industry, buyers include central banks, technology companies (gold is used in smartphones or computer hard drives) and private investors who hold some of their assets in gold bars.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
