US tariff negotiations reaffirm Switzerland’s role as a gold hub

Gold is refined to an exceptional grade of purity Reuters

Refined gold was a major part of the negotiations that saw United States tariffs on Switzerland lowered to 15%. Here's how the Swiss came to dominate the sector.

It is difficult to fathom the enormous quantity – and value – of gold that arrives in Switzerland every year.

In 2023, Switzerland imported approximately 2,372 tonnes of gold worth CHF91 billion ($114 billion), while exporting 1,564 tonnes valued at CHF88 billion, according to the Federal Customs Administration. These flows confirm Switzerland’s continuing role as the world’s largest importer and exporter of gold by value.

Global mine production today stands at just over 3,300 tonnes per year (USGS). Switzerland refines roughly one-third of this newly mined gold, in addition to large volumes of recycled and investment-grade gold.

When including recycled and informal-sector material, a substantial share of the world’s refined gold supply still passes through Switzerland, with estimates ranging between one-third and one-half depending on global market conditions.

In 2012, Frédéric Panizzutti, spokesman for MKS (Switzerland) SA, estimated that Switzerland refined around 70% of the world’s gold. While global refining has since diversified, Switzerland remains home to several of the industry’s most important facilities.

Most major refineries are Swiss

At the time, Panizzutti noted that “if you look at the refineries on the Good Delivery List, six have 90% of the volume. Four of them are based in Switzerland.” The Good Delivery List is the quality certification system of the London Bullion Market Association (LBMA), the main international authority for investment-grade gold.

It is therefore likely that the ring on your finger or the ingot stored in a safe elsewhere in the world was refined by Valcambi in Balerna, Pamp in Castel San Pietro, Argor-Heraeus in Mendrisio or Metalor in Neuchâtel.

How did Switzerland come to dominate the sector? “The answer is very simple,” Panizzutti said. “This country has an exceptional level of security and efficient logistic and financial systems. These are highly important factors in the precious metals sector.”

Switzerland to gold is like Bordeaux to wine

Switzerland is to gold what Bordeaux is to wine, notes journalist Gilles Labarthe, author of a book on African gold. “Apart from its long historical tradition, all the infrastructures and required services are in place.”

The gold market in Zurich remains one of the most important in the world. Until a few years ago the main industry lobby group, the World Gold Council, was also based in Geneva.

The reputation of the “Swiss made” label is strong in the gold sector. Refiners routinely produce bars of 99.99% purity, known as “four nines”, a benchmark accepted in vaults worldwide.
“Gold refined in Switzerland is a guarantee of quality anywhere you go,” Labarthe explains.

“A refinery produces not just gold bars, but semi-finished products such as coins and medals that require a high degree of precision. Switzerland has always maintained itself at the top as regards quality and there is no reason why that should change now,” Panizzutti added at the time, drawing a parallel with Swiss watchmaking.

Three of the five LBMA-appointed “referees” responsible for global quality control in gold refining are based in Switzerland: Pamp, Argor-Heraeus and Metalor.

Ticino leads Swiss refineries

Swiss refineries largely act as service providers. “As a rule these foundries receive gold from their customers and refine it to the standard grade of purity. The customer then decides whether to take the gold back or sell it on the market or to the refinery,” Panizzutti explained.

Most of the country’s refineries are located within a small area. Apart from Metalor in Neuchâtel, the three major southern refineries — Valcambi, Pamp and Argor-Heraeus — are concentrated in the Mendrisiotto region of Ticino, just across the Italian border.

The origins of this cluster are historical. “In the 1970s and 1980s, Italy was the world’s top producer of jewellery and sourced much of its refined gold from Ticino,” notes Valcambi, now owned by the US-based Newmont Mining Corporation.

Today, the main driver is global investor demand. High-purity gold bars refined in Switzerland are stored, traded and used as financial instruments in markets such as Zurich, London, New York and across Asia.

Gold prices have reached repeated record highs, surpassing $3,500 per ounce in 2025 amid geopolitical uncertainty and inflation concerns. Gold continues to serve as a form of financial insurance: while money can be created, gold cannot.

Why the US buys so much Swiss gold

The United States has become a major destination for Swiss gold in recent years. Much of this demand comes from US-based exchange-traded funds (ETFs), private investors and financial institutions seeking safe-haven assets in times of market volatility. Switzerland’s reputation for quality and the trusted LBMA accreditation of its major refineries make Swiss bars especially attractive for American vaults and investment products.

Ethical sourcing scrutiny

Switzerland’s dominant position in the global gold trade has also brought increased scrutiny of its supply chains. Regulators and civil society groups have pushed for clearer documentation of where imported gold originates, particularly when it comes from artisanal or conflict-affected regions. Swiss refiners have strengthened due-diligence practices in recent years, but debates continue around transparency and sourcing standards.

Read more: The quest for ethical gold – a Swiss refiner’s viewpoint

A new US–Swiss trade dynamic

One of the most significant developments since the early 2010s is the rapid rise of Swiss gold exports to the United States. In 2024, Switzerland exported around CHF 53 billion worth of gold to the US, making the metal one of the main contributors to Switzerland’s bilateral trade surplus.

In 2025, the US imposed a 39% tariff on goods from Switzerland, which also applied to refined gold products. A revised agreement now lowers tariffs on most Swiss exports to 15% and excludes refined gold. The deal helps preserve the economic viability of Swiss gold shipments to the US and highlights the strategic importance of the sector in US–Swiss relations.

The CEO of one of the largest Swiss gold refiners took part in meetings with US President Donald Trump regarding tariffs on Switzerland.  A senior Swiss economic affairs official told a press conference following the announcement of the revised tariffs that Swiss gold refiners are interested in moving some operations to the United States in future.

Gold imports

In 2023, Switzerland imported 2,372 metric tons of gold, valued at CHF 91 billion, according to the Federal Customs Administration.
In the same year, Switzerland exported 1,564 metric tons of refined gold worth CHF 88 billion.
Over the past decade, annual imports have generally ranged between 2,000 and 2,500 metric tons, confirming Switzerland’s role as the world’s largest gold importer and exporter by value.
Switzerland refines roughly one-third of global newly mined gold, in addition to large flows of recycled gold.

Source: Swiss Federal Customs Administration; US Geological Survey

The gold industry in Switzerland

Six Swiss companies belong to the Good Delivery List of the London Bullion Market Association, which means that they meet all the standards set by this London-based industry watchdog.

Valcambi SA of Balerna, founded in 1961 and now owned by the US group Newmont Mining Corporation, has an annual refining capacity of about 1,400 metric tons. It has a staff of 165.

Pamp SA of Castel San Pietro (1977 – MKS SA Geneva) has an annual refining capacity of 450 metric tons. It has a staff of 160.

Argor-Heraeus SA of Mendrisio (founded 1951) has an annual refining capacity of 1000 metric tons. It has a staff of 230 in Switzerland, Germany, Italy and South America.

Metalor TechnologiesSA, located in Neuchâtel, has existed since 1852 under the name Martin de Pury & Cie. Today, the group has a staff of 1,650 around the world. It has an annual refining capacity of about 650 metric tons.

Other than the four large refineries, Cendres + Metaux SA in Biel and PX Précinox SA in La Chaux-de-Fonds are also affiliated with the LBMA. These two firms have not disclosed annual refining capacities.

Source: goldbarsworldwide.com

(translated by Terence MacNamee)

(Originally published on the 03.07.2012)