beefsteak
10th November 2011, 10:00 AM
Switzerland Faces New Challenges in Meeting Gold Demand
Switzerland is home to most of the world’s refined gold: 60% of the world’s refined gold comes from just four giant companies in Switzerland, a nation that keeps its gold pure (by law), most commonly in the form of 400-ounce bars. Switzerland is the only country that regulates gold purity by law. Every refinery must have in-house assayers, employed by the state (not the company or the bank), to guarantee the purity of its gold in storage or manufacture.
The new European gold demand has created new challenges for Swiss fabricators. According to an article in this week’s Bloomberg Business Week (“It’s the Great Gold Bar, Charlie Brown!”), the Swiss are manufacturing “designer gold, devised to appeal to popular taste.”
Counterfeit gold products have been a problem lately, even in Switzerland. The Business Week article cites a recent example: “In 2010, Switzerland’s Precious Metal Control bureau searched 12,000 consignments entering or leaving the country. A third contained false or adulterated metals, including fake gold watches and jewelry made with adulterated gold. The Swiss destroyed 4300 watches and 8400 jewelry pieces.”
MF
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COMMENTARY:
1) H................
2) P.................
3) V................
4) M..............
How did GS's score on above quiz
-- (CONFESSION: got 2 outta 4)
Switzerland is home to most of the world’s refined gold: 60% of the world’s refined gold comes from just four giant companies in Switzerland, a nation that keeps its gold pure (by law), most commonly in the form of 400-ounce bars. Switzerland is the only country that regulates gold purity by law. Every refinery must have in-house assayers, employed by the state (not the company or the bank), to guarantee the purity of its gold in storage or manufacture.
The new European gold demand has created new challenges for Swiss fabricators. According to an article in this week’s Bloomberg Business Week (“It’s the Great Gold Bar, Charlie Brown!”), the Swiss are manufacturing “designer gold, devised to appeal to popular taste.”
Counterfeit gold products have been a problem lately, even in Switzerland. The Business Week article cites a recent example: “In 2010, Switzerland’s Precious Metal Control bureau searched 12,000 consignments entering or leaving the country. A third contained false or adulterated metals, including fake gold watches and jewelry made with adulterated gold. The Swiss destroyed 4300 watches and 8400 jewelry pieces.”
MF
-----------------
COMMENTARY:
1) H................
2) P.................
3) V................
4) M..............
How did GS's score on above quiz
-- (CONFESSION: got 2 outta 4)