In recent years, huge quantities of physical gold have flowed from West to East. From New York, London and Switzerland, the yellow metal has been exported to emerging markets in the East, including India and China - two of world’s largest importers and consumers.

The large scale movement (running to tens of millions of ounces every year) has raised concerns over rapidly depleting gold stocks in Europe and other traditional storehouses.

The European Central Bank, despite an agreement to sell 400 tonnes of gold every year between 2009 and 2014, held back the metal from the market even when prices ruled high at $1,600-1,700 an ounce.

Huge quantities of gold pass through Europe’s gold hub Switzerland. The tiny nation registers huge amounts of imports and exports of the precious metal every year. Switzerland continues to be a net importer of the yellow metal.

According to the New York based consultancy CPM Group, Switzerland imports more gold than it exports anually. Last year, net imports fell to 9.8 million ounces, but it still was a net absorber of gold.

Swiss gold imports totalled 147.7 million ounces between 2008 and 2013. Adjusting for the 4.4 million ounces of Swiss fabrication demand during this time, refined gold bullion inventories in Switzerland rose to 143.3 million ounces, CPM group has estimated.

China’s gold investment demand totalled 43.5 million ounces over the same time period.

In other words, more investors bought more gold stored in Switzerland over the past six years than they bought the metal stored in China.

In 2013, gross imports reached a new high of 100 million ounces, sharply up from 75 million ounces in 2012.

During the same period, gross exports (90 million ounces in 2013 and 50 million ounces in 2012) trailed gross imports making Switzerland a net importer.

Trade data from 2008 onwards show gross imports higher than gross exports.

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