Where the Gold for Swiss Refineries Comes From
Products from Argor-Heraeus, PAMP and Valcambi have one thing in common: all these refineries are based in Switzerland, through which a large share of the world’s refined gold passes – figures of around two thirds are often quoted. But where does the raw gold that these refineries turn into investment bars and coins actually come from? And how is its responsible origin ensured?
Switzerland: a refining centre without its own mining
The paradox is that Switzerland itself mines practically no gold. Even so, several of the world’s largest refineries are based there:
- Argor-Heraeus – based in Mendrisio, one of GOLDU’s main suppliers of investment bars,
- PAMP – based in Castel San Pietro, maker of the Lady Fortuna series among others,
- Valcambi – based in Balerna, the largest refinery in the world by volume,
- Metalor – based in Neuchâtel; GOLDU does not currently offer this refinery’s products.
Every year Switzerland imports large quantities of raw gold, refines it and re-exports most of it as finished investment products.
Where the gold really comes from
Important sources have long included South Africa and other African producer countries such as Ghana, Mali, Tanzania and the Democratic Republic of the Congo. Peru also plays a significant role. A considerable share of African gold does not reach Switzerland directly but travels via the United Arab Emirates (Dubai), which serves as a global trading and re-export hub for precious metals.
The problem of “blood gold”
Gold from parts of Latin America and Africa in particular is repeatedly linked to so-called blood gold – gold from illegal or informal mining, often associated with deforestation, exploitation of workers or the financing of organised crime. Despite strict traceability requirements, investigative media report that such gold occasionally still enters the refining chain.
How responsible refining works (LBMA Responsible Sourcing)
Refineries on the LBMA Good Delivery list – including Argor-Heraeus, PAMP and Valcambi – must pass a strict origin audit under the LBMA Responsible Sourcing programme. It checks that the gold does not come from conflict zones, child labour or money laundering, across the entire supply chain from mine to refinery. What LBMA accreditation means is explained in the article What is the LBMA and Good Delivery certification.
What it means for GOLDU customers
Investment gold and silver at GOLDU come exclusively from refineries and mints accredited under LBMA Good Delivery. This means they have passed this origin audit – not that a specific mine can physically be traced, but that the supply chain has been independently checked against an international standard.
There is, however, a product whose traceability goes even further, right back to the specific source – the Valcambi Green Gold line. It is described in detail in the article Valcambi Green Gold.
Frequently asked questions
Does LBMA certification mean 100% certainty that gold does not come from a problematic source?
It is the highest industry standard available, with regular audits, but not an absolute guarantee – media reports questioning individual cases in the global supply chain do surface from time to time.
Why does so much gold pass through Dubai if it comes from Africa?
Dubai is a global trading and logistics hub for precious metals with well-developed infrastructure for trading, storage and certification – much as London is a hub for wholesale gold trading.
Does Switzerland mine any gold of its own?
Not on any significant scale – Switzerland is purely a refining and trading centre, and all the gold it processes is imported.
About the author
Adolf Baumann, analyst at Baumann Group a.s. (GOLDU), has been working with precious metals for over 30 years. He has seen euphoria, crashes and panic on the markets – and he still enjoys it. He explains in plain language what moves the price of gold and silver and how to handle them without unnecessary mistakes. His weakness? He refuses to wear a suit.
