(ZURICH) – Switzerland imported £25 billion worth gold from Britain in the first half of this year, said Australian founded bank Macquarie.
According to Macquarie, homeland imported 797 tons of gold from Britain in the first six months of this year and 240 tons in May solely. Switzerland imported only 92 tons of gold from UK last year.
Britain’s yellow iron alloy trade items to Switzerland advanced harshly in the first half of this year, suggesting bullion being sold out of exchange-traded capital may be heading for Swiss refineries before being sold on in Asia, the bank supplemented.
Macquarie said “The UK does not have gold mines, so where has it all reach from? The conspicuous source is the gold exchange-traded capital (ETFs), most of which contain their gold containing in London vaults, and which glimpsed huge outflows in 1H 2013,” also added “And why is it going to Switzerland? Two interpretations make sense. One would be that investors have very resolute to switch their gold investments from ETFs to allotted deposit anecdotes, which are often held in Switzerland,”
“But a bigger component, we believe, is that the gold bars from ETFs have gone to Switzerland, where most of the world’s gold perfecting capability is, to be remelted into distinct dimensions bars and coins and then traded on,” the firm supplemented.
Though institutional investors and centered banks shunned gold after a very quick drop in charges throughout the last quarter, Macquarie proposes that one-by-one purchasers are still involved, with demand for jewelry up 40%, and bar and coin buying into up by 78% through the 12-month time span.