Gold bullion in the overwhelming demand that confidence in banks dive

Gold Switzerland refineries have great difficulty keeping up with demand for gold bullion, leading to delivery times are long as investors cautious other stores of wealth.

Gray completed by concrete walls and barbed wire, workers in goggles and steel-toed boots this smelter can not work fast enough to meet demand from nervous rich gold.

The refinery, near Lake Lugano, Alpine is day and night that people worry about recession in the race to change something that assets may have its value.

"I was in the gold business for 30 years and I've never experienced anything like this, "said Bernhard Schnellmann, director of services related to precious metals refinery Argor-Heraeus, one of three world's largest.

"Production has increased dramatically since mid-year. We can not meet demand," said Schnellman, using a gold watch on his wrist.

Spot gold hit a record $ 1,030.80 an ounce on March 17. It fell below $ 700 in late October, partly because investors sold their holdings to cover losses in stocks and bonds in the markets affected by the crisis of credit is about of $ 830 an ounce.

The trigger for the price to rise again could come from a dollar much weaker, which makes gold cheaper for holders of other currencies, and an aversion to the replacement of paper assets such as governments and central banks to pump large amounts of cash into the economy, sparking inflation.

Waves of smoke that poured molten gold, like warm butter. To cool the worker, falls into the water. Silba as strikes. Once hardened in mussels, the gold bars are embossed seal of the refinery. Workers in white gloves, stacks them in boxes like dominoes.

Although Switzerland is not a gold miner, is home to some of the largest refineries in the world, what process it is estimated that 40 percent of all newly mined gold.

Argor-Heraeus is partly owned by the Mint of Austria and a subsidiary of Commerzbank of Germany. Commercial and central banks are their main customers and saying that processes about 350-400 tonnes of gold and 350 tons of silver a year.

Customers buy gold bullion, which can weigh over 10 kg each one must wait about a month, taking into account the year-end holiday.

For purchase of coins or ingots, which can fit in the palm of one hand, the period is six to eight weeks. From there one year, these small products can be made within days.

Concerns about the system global banking increased global demand for physical gold, the Gold Council said.

"Many (people) are afraid to leave their money in banks" Said Sandra Conway, managing director of ATS Bullion in London, which sells bullion and gold coins for the institutions and the retail market.

"It is difficult quantify, but I'd say the majority of our turnover last three months has certainly doubled compared to three months, he said.

Full Capacity

Other Swiss gold refineries also say business is booming.

"From the summer, we experienced increased demand for certain products in gold. This kilo bar has become very popular, "Said Fiorenzo Arbin, in charge of health and safety Pamp, another large Swiss refinery.

"People buy licenses, they now want physical gold."

Schnellmann Argor-Heraeus said smelter is operating at full capacity, three-quarters of eight hours per day. The conquest of accumulation by the recruitment is difficult, because each applicant must undergo a security check.

The gold refineries have been established in Swiss watchmaking industry supply and more Later, Italian jewelry manufacturers.

The largest banks in Switzerland has stepped in to replace the void in the gold trade, while the market Gold traded in London has been closed after the Second World War and again during a brief closure in 1968.

The former Soviet Union, another producer gold in the leading banks in Zurich has chosen to deal with most of its gold sales in 1970 and 1980.

"Gold has a reputation for ultimately be active. This could be considered old-fashioned but this is how people with money enough to matter enough thought, "said Stephen Briggs, a metals strategist at RBS Global Banking & Markets.

Gold Touch

India, China (cnmining) and the Middle East remain the largest importers of gold, especially for jewelry. But demand for physical gold has broken out in Europe too, the Council said Gold.

In Switzerland, houses the world's largest private banking sector, demand for gold bullion and coins has increased sixfold to 21 tonnes in the third quarter of 2008 more than any other European country.

The retail investment in gold rose 121 percent in the third quarter of 2008, a major contributor to the overall increase in global demand, the Council said Gold.

In this period of purchasing gold bars from retail investors, who often purchased by commercial banks, rose nearly 60 percent, including Switzerland, Germany and the United States.

There has been a renewed interest among professional investors shortly after the collapse of Lehman Brothers in September.

Julius Baer Private Bank in October launched a fund to invest exclusively in gold bullion stored in high security vaults in Switzerland.

"The fascination of gold has been there since the beginning of civilization" Schnellmann said. "There can be explained, can not eat gold, you can not build something with it resists and yet people want to hoard."

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