Gold fever has gripped Switzerland’s export market. The Alpine nation just shipped a staggering 192.9 tons of gold to the United States in January 2025, dwarfing December’s already impressive 64.2-ton figure. It’s the highest monthly amount since 2012, and frankly, it’s causing quite a stir in the global bullion markets.
The numbers are mind-boggling. We’re talking about an 11-fold increase from November to December 2024. Meanwhile, traders are practically tripping over themselves to get gold onto American soil. Why? Simple: fears of potential US import tariffs and some juicy price premiums between US futures and London spot prices. It’s amazing what the threat of trade restrictions can do to market behavior. Safe-haven demand has driven investors to aggressively pursue gold assets. The shift has particularly impacted traditional buyers as Indian shipments declined significantly during this period.
The impact on US markets has been dramatic. COMEX gold inventories shot up 116% to 38.0 million ounces – the highest since March 2021. That’s $60 billion worth of shiny metal finding a new home in American vaults. Not too shabby for a few months’ work.
Switzerland, the world’s biggest bullion refining hub, is basically playing musical chairs with the global gold supply. Traditional gold markets are feeling the pinch. China and India are watching their Swiss gold shipments plummet, while London’s seeing some serious squeeze. The UK’s not sitting idle either, with its gold exports to the US jumping 13-fold to 14 tons in December.
Price disparities have created a gold rush of sorts. COMEX futures are commanding premiums exceeding $50 per ounce over London spot prices. Traders love nothing more than a good arbitrage opportunity, and boy, are they getting it. The market’s gotten so tight in London that there are actually queues to withdraw metal. Imagine that – waiting in line for your gold.
The whole situation has created a fascinating domino effect. Physical gold is abandoning traditional storage hubs for US warehouses, while traders scramble to cover their short positions. It’s like watching a massive game of financial musical chairs, except everyone’s fighting over gold bars instead of seats.
