What is the Swiss Procedure for Buying Gold?

Diane Goettel
Diane Goettel

For centuries, people have entrusted their money to the precious metals market. Switzerland, a world wide banking hub, is also home to the largest gold market in the world. People who are in possession of a Swiss bank account have six different ways to invest their money in gold. Investors should be sure to choose the Swiss procedure that makes the most sense for them and their funds.

Gold investors rarely posses bars of physical gold, but exchange physical or electronic certificates that indicate that they posses gold.
Gold investors rarely posses bars of physical gold, but exchange physical or electronic certificates that indicate that they posses gold.

First of all, investors can buy actual gold. If they wish to transfer their funds into an exchangeable object that they can keep in their possession, then they can buy bars of gold. People should be aware that their Swiss bank will charge them a fee for delivering the gold. This method is often attractive to people who want to consolidate a great deal of money into a transportable commodity.

Gold starts off as small flakes and nuggets before it is melted and refined.
Gold starts off as small flakes and nuggets before it is melted and refined.

Those who are already in possession of gold can deposit the bar or bars for safekeeping into a Swiss bank box. People who decide to use this procedure should be sure to have their gold bars certified before depositing them in the bank. This will ensure their quality and allow the investor to trade the gold at a later date.

There is a Swiss procedure that will allow an individual to invest in gold without actually purchasing the metal. If the person decides to invest in a precious metal account, he or she will contractually own a portion of a gold bar. This allows him or her to invest in the precious metal without paying the fees involved in manufacturing the bars or delivering them.

An alternative is to buy shares or funds in the gold industry through a Swiss bank. Investors can also invest in markets that rely on gold-based products through a Swiss bank. This is much like investing in the stock market.

The rarest and, perhaps, most artful Swiss procedure for investing in gold is to become involved in numismatics. Numismatics is a field of study that has to do with ancient gold and coins. In addition to the weight and quality of a piece of gold, a numismatics scholar will also be interested in its history and rarity. This way of working with gold is only used by a small percentage of investors.

Switzerland is home to the world's largest gold market.
Switzerland is home to the world's largest gold market.
Diane Goettel
Diane Goettel

In addition to her work as a freelance writer for wiseGEEK, Diane is the executive editor of Black Lawrence Press, an independent publishing company based in upstate New York. She has also edited several anthologies, the e-newsletter Sapling, and The Adirondack Review. Diane has a B.A. from Sarah Lawrence College and an M.A. from Brooklyn College.

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Discussion Comments

JessicaLynn

@strawCake - Gold is traditionally a pretty safe investment. I would also like to point out that most investments can fluctuate in value. The stock market goes up and down all the time!

Also, high yield checking accounts are a joke these days. You may get a 1% interest rate-if you're lucky. I think buying gold would probably be a much more sound investment.

strawCake

I feel like I hear about people investing in gold here in the United States all the time! For whatever reason, a lot of people seem to consider gold a safe investment.

I can sort of understand why. Traditionally, gold is always valuable. However, it seems risky to invest in a precious metal that could fluctuate in value. I think I would rather just keep my money in a high yield checking account.

anon45949

Could you please explain to me what is the International Gold Procedure Swiss, L2l?

anon33967

Please explain the swiss gold procedure. Thanks.

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