Market importance of gold in 2020

In the corona crisis, many Swiss people use gold as a “safe currency”. The commodity continues to gain importance as an investment alternative: the price of gold has risen by more than 12% since the beginning of the year. Swiss private investments total 920 tons of gold worth 48 billion Swiss francs. This is shown by the latest study by the Research Center for Trade Management at the University of St.Gallen (IRM-HSG). The investigation was again supported by the precious metal trader philoro Schweiz AG.

 

Study summary

The study shows that respondents who feel threatened by the coronavirus consider precious metals to make more sense as an investment than those who hardly feel threatened by the virus. In addition, the former have invested in precious metals in 27% of cases in the past. With a low subjective perception of threat, this value is only 22.4%. The future investment intentions in precious metals are surprisingly almost the same for both groups. This is due to the high popularity of precious metals for years, regardless of the corona crisis. Private investors in Switzerland buy precious metals primarily for long-term investment (1st place), because of security (2nd place) and high stability (3rd place). With a high perceived threat from the virus, crisis prevention is more important to these consumers than preservation of value. Precious metals are thus bought as a “reserve in times of crisis”.