The Swiss gold reserve is maintained by the Swiss National Bank. As of June 2017, the bank holds 1,040 metric tons of gold, which is about 7% of the nation’s total reserves. The gold is stored in various vaults across the country, with the largest concentration being in Bern. The gold is primarily used as a reserve asset and is not used for circulation.
Being one of the world’s largest, it is valued at $247 billion. Switzerland’s gold reserve is one of the largest in the world, valued at $247 billion.
Gold reserve in Switzerland has a long and varied history. Gold has been stored in Switzerland since the 13th century, and the Swiss National Bank (SNB) has been responsible for the country’s gold reserves since 1907. The SNB is required by law to hold 20 percent of its assets in gold, and it currently holds approximately 1,040 tons of gold. The Swiss Confederation began stockpiling gold in the 13th century, partly in response to a currency crisis in Europe. By the early 16th century, the Swiss had the largest gold reserves in Europe. The Swiss were able to profit from their gold reserves during the Napoleonic Wars, as other countries were forced to sell their gold to finance the war effort. In 1848, Switzerland adopted a new constitution which made gold the only legal tender. The Swiss franc was pegged to gold at a rate of 4.5 francs per gram of gold. This system, known as the gold standard, lasted until it was abandoned in the midst of the Great Depression in 1931. In the aftermath of World War II, Switzerland continued to profit from its gold reserves. The Swiss franc was once again pegged to gold, this time at a rate of 35 francs per ounce. The Bretton Woods system, which pegged global currencies to the US dollar, was introduced in 1944. This system collapsed in 1971, leading to a series of currency crises known as the “Nixon shocks”. In response to the collapse of the Bretton Woods system, the SNB stopped selling gold and began buying gold. The SNB continued to increase its gold reserves in the 1980s and 1990s, as global uncertainty increased. The SNB reached its current gold reserve level in 2000. The value of gold has fluctuated in recent years, but it remains an important part of the SNB’s reserves. The SNB has stated that it will continue to hold 20 percent of its assets in gold.
