Geneva (awp) – In one of the main Swiss refineries, Argor Heraeus, gold from the secondary market has certainly flowed this year to be melted there, given the explosion in sales to retailers. However, demand for investment gold, such as bars and coins, has been severely undermined by the high prices of the yellow metal, which has not been conducive to business.
Located in the heart of the Ticino town of Mendrisio, the Argor foundry has a maximum annual production capacity of 3.5 million minted ingots weighing between 0.5 and 100 grams, explains its co-general director, Robin Kolvenbach.
But while this quantity had been reached between 2022 and early 2023, “this year, sales fell significantly due to falling demand,” reveals the manager in an interview with the AWP press agency. .
“A rising gold price is generally not favorable for our business. To be honest, I am happy that 2024 has been so stable given the high gold prices,” he adds, while not wishing to give figures.
If for merchants the year has proven to be very fruitful, Mr. Kolvenbach points out that the majority of the gold passing through his company is processed on behalf of the watchmaking and jewelry industries, which are bearing the brunt of the decline in prices. sales in China. Argor Heraeus has around twenty regular customers in these two sectors.
His boss nevertheless remains positive for the year ahead for this segment because “the outlook is stable, even if we do not expect the growth figures that we have experienced in the past”.
“Not a gram of gold in stock”
Furthermore, regarding investments in bars and coins, “when gold prices have recently fallen following the election of Donald Trump as President of the United States, demand has started to rise again, even if it is still far from the 2023 level”, he says.
“We will have to see if this was just a peak or if it is confirmed in a more lasting way, but I am more optimistic today than two months ago,” says the manager, whose investment clients are consists of around fifty banks and retailers, the foundry not dealing directly with individuals.
As a service provider, the smelter refines gold for jewelry, merchants or processes ingots from mines which it transforms into investment products for its clients. “However, we do not own a gram of gold and we do not make money from price variations,” underlines Mr. Kolvenbach, who assures that the prices of the various services offered, fixed, have remained the same as before. before classes start.
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