Switzerland is home to an estimated 200 tonnes of privately owned gold, valued at nearly CHF15 billion.

Gold Ownership in Switzerland

A recent study conducted by the University of St Gallen (HSG) on behalf of precious metals dealer Philoro found that around 22% of Swiss residents own gold, averaging about 101 grams per person. Interestingly, a fifth of this gold is stored at home, indicating a preference for personal control over these valuable assets.

However, the popularity of precious metals as an investment has been declining in recent years, with only 28% of survey participants currently favoring them. Real estate and traditional savings accounts are preferred by 47.6% and 34.2% of respondents, respectively.

Changing Investment Strategies

While a significant 65% of respondents view gold and other precious metals as a "sensible" investment, the actual preference for investing in these assets has waned. This decline in popularity may be attributed to a broader shift in investment strategies, with many individuals gravitating towards real estate and more conventional savings methods.

Despite this, a considerable number of gold owners still trust banks for the storage of their precious metals, with approximately 39% utilizing bank safes.

Motivations for Selling Gold

The motivations behind selling privately owned gold are often rooted in necessity rather than opportunism. The study indicates that 43% of individuals who have sold their precious metals did so due to "emergency sales." However, there is a noticeable shift in the market dynamics, as an increasing number of gold owners are now selling portions of their holdings to capitalize on rising prices.

The Future of Gold Ownership

As the landscape of investment continues to evolve, the future of gold ownership in Switzerland remains uncertain. The decline in popularity of precious metals as an investment choice raises questions about the long-term viability of gold as a financial asset. The ongoing dialogue about the role of gold in personal finance and investment strategies will be essential for understanding the future of wealth preservation in a rapidly changing economic environment.