Switzerland sent 524 tons of gold to China last year, more than it has since 2018
By Peter Hobson
LONDON (Reuters) – Swiss gold exports to countries including China, Turkey, Singapore and Thailand rose to a multi-year high in 2022, Swiss tariffs data showed on Tuesday, as low prices fueled consumer demand in Asia and the Middle East boosted.
Rising interest rates prompted many financial investors in Europe and North America to sell gold last year, releasing large amounts of metal from inventories and driving down prices.
This has allowed bullion to flow into Asian markets, which are more focused on retail jewelry and small bullion for consumers who typically buy more when prices fall.
Economic instability also fueled demand for gold, which many see as a safe haven asset, particularly in Turkey where inflation has skyrocketed.
Switzerland is the world’s largest gold refining and transit center. It imports ingots from mines and storage centers around the world for processing and re-export.
Last year it exported 524 tons of gold worth about $33 billion at current prices to mainland China and Hong Kong, up from 354 tons in 2021 and the highest since 2018, Swiss customs data showed.
Switzerland shipped 69 tonnes of gold to Singapore, up from 33 tonnes in 2021 and the most since 2017, and 92 tonnes to Thailand, down from 56 tonnes in 2021 and the most since 2013.
It sent a whopping 188 tonnes to Turkey, up from 11 tonnes in 2021 and by far the most on record going back to 2012, and 47 tonnes to Saudi Arabia, down from 7 tonnes in 2021 and the most since 2015.
The weak point was India, the largest precious metals market after China. Switzerland sent 224 tons of gold to India last year, up from 507 tons in 2021.
Shipments to India slowed sharply in December as gold prices started to rise. From a low of $1,615.59 an ounce in November, gold prices have surged above $1,940 as western investors anticipating the end of the rate hike cycle started buying.
Demand from China could remain solid as the lifting of COVID-19 restrictions revives economic growth, independent analyst Ross Norman said.
But if prices stay high, India’s appetite for gold is likely to remain weak, he said: “They’re real bargain hunters. I don’t see demand picking up there in a few months.”
Below are numbers and comparisons.
SWISS GOLD EXPORTS, ANNUAL (KG)
Total to China to Hong Kong to India to Turkey to To
Kong Singapore Thailand
2022 1,565,722 478,175 45,482 224,464 188,299 69,387 91,942
2020 1,179,564 30,500 26,710 147,760 77,312 26,187 21,195
2021 1,353,006 274,809 79,066 507,224 11,395 33,411 56,416
SWISS GOLD EXPORTS, MONTHLY (KG)
Total to China to Hong Kong to India to Turkey
Kong
22 Dec 150,072 62,658 13,189 4,812 31,132
Nov 22 129,017 34,857 62 23,068 25,059
21 Dec 97,299 14,500 5,761 28,307 125
* Source: Swiss Customs. Data may be revised from the source.
(Reporting by Peter Hobson; Editing by Sherry Jacob-Phillips)