A new report shows that gold is now the second-most popular way to invest in Switzerland, being mentioned by 48% of those questioned. Almost one fifth of Swiss nationals are even planning to invest in the precious metal within the next twelve months.

The report, published by the University of St Gallen in Switzerland, questioned 2,300 Swiss nationals over their intentions regarding precious metals and investment. The results showed the impressive interest for gold amongst the people of Switzerland.

Switzerland is currently 5th in the world for gold reserves, with 1,040 tonnes as of 2019, most of which is held by the Swiss National Bank in Bern. The nation’s banking and tax regulations – as well as its geopolitical neutrality – make it a favourite among investors, and the country has a strong reputation for its financial industry. Two of the world’s biggest gold refiners, PAMP Suisse and Metalor, are both based in Switzerland.

60.5% of those asked considered precious metals to be a ‘sensible form of investment’, and 19.5% had plans to invest in gold within the next twelve months. Swiss investors value gold highly, and precious metals contribute and impressive 26.4% share of the average portfolio.

This is no doubt helped by the fact that gold has performed well in Swiss Francs recently – gaining 10.84% in two and a half years, and 15.4% in the past five years. With growth in the surrounding Eurozone stalling, Swiss and European investors are increasing their demand for gold, driving the price up.