Popular investment Swiss hoard tons of gold at home - many unsecured
Although the price of gold has risen by 32 percent since the beginning of the year, enthusiasm for the precious metal as an investment is waning. After all, around 200 tons of gold are privately owned in Switzerland.
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- Around 22 percent of the population own an average of 101 grams of gold per capita, worth CHF 7521.
- This is estimated by the "Precious Metals Study 2024" by the University of St. Gallen.
- However, the popularity of the precious metal has been declining for years - despite new record highs in the price of gold.
An estimated 200 tons of gold with a value of almost 15 billion Swiss francs is privately owned in Switzerland. The owners store a fifth of this at home.
This is the conclusion of the "Precious Metals Study 2024" conducted by the University of St. Gallen (HSG) on behalf of the precious metals dealer Philoro. Based on a survey of 3,000 participants, the HSG estimates that around 22 percent of the population owns an average of around 101 grams of gold per capita, worth CHF 7521.
Gold in the form of jewelry was not taken into account.
Real estate and savings accounts are more popular than gold
However, the popularity of the yellow precious metal has been declining for years - despite new record highs in the price of gold. It has risen by 32 percent this year and recently passed the 2700 dollar per ounce mark. Ten years ago, an ounce of gold cost 1248 dollars, twenty years ago it was only 424 dollars.
Nevertheless, according to Sven Reinecke, head of the HSG study, only 28 percent of those surveyed currently prefer precious metals as an investment. Real estate (47.6%) and traditional savings accounts (34.2%) were much more popular.
Nevertheless, a majority of 65% of respondents consider gold and other precious metals to be a "sensible" investment. The main reasons given for this were the stability and long-term nature of the investment.
A large proportion of gold owners also continue to trust banks when it comes to storing their precious metal. For example, 39 percent of investors rely on bank safes, while around 18 percent use a safe at home.
Returns have become more important
When privately owned gold is sold, it is usually out of necessity. For example, 43 percent of those surveyed who have already sold precious metals cited an "emergency sale" as the reason.
However, more and more gold owners are now selling at least part of their holdings in order to realize a profit. According to Reinecke, their share has increased compared to previous studies.
"The sharp rise in the price of gold and the media coverage of it have probably contributed to the fact that the return on the yellow precious metal has come more into focus recently," said Christian Brenner, Managing Director of Philoro Switzerland.
SDA
