Physical gold has traditionally been a relatively sedentary financial asset. In general, “physical gold bought and sold on the markets by large institutional players does not travel much. It changes owners but often remains in coffers in London, New York, Geneva or Zurich ”, explains Laurent Schwartz, director of the Comptoir national de l’Or. However, following the outbreak of the coronavirus pandemic, we were able to observe significant international movements on the yellow metal, in particular towards the East coast of the United States …
As the health and economic crisis was in full swing, the gold market experienced disruption in its supply chain. “Stock-outs have occurred on some bullion, in particular on the New York Stock Exchange,” said the expert. As a result, many market players took the opportunity to “buy gold in London or Switzerland, and send it to New York to resell it on the Comex (the American gold market), where it had a significant premium, ”he reports.
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Thus, since the end of March, more than 400 tons of gold have landed in the coffers of Comex, indicates Reuters. The scale of this migration makes it “one of the most important golden movements in history”, underlines Laurent Schwartz.
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Gold exports from Switzerland to the United States soared to 150 tonnes, cumulatively over March and April. This represents “8 billion Swiss francs of gold exported in just 2 months, almost as much as all of the Confederation’s gold exports to the United States since 1988!”, Reports the expert.
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