Swiss Government Pension Fund To Buy Gold Bars Worth Some USD 600 Million

Swiss Government Pension Fund Allocating 2% Of Pension Fund To Gold Bars

via IPE Quest

The Swiss government pension fund, Switzerland’s AHV/AVS fund, has decided to diversify into physical gold bars in their substantial CHF35.2bn (€30.5bn) pension portfolio.

At the end of last week the first pillar buffer fund tendered a custodianship and storage for CHF 700m (EUR 600m / USD 700m / GBP 525m) in gold bars via IPE Quest.

The bars are to be stored in Switzerland either collectively or individually, the tender (QN-2447) states.

The tender marks a shift in the investment strategy for AHV/AVS, as it previously only invested in gold and silver via swaps.

“The supervisory board has decided we are to invest in physical gold bars from now on,” the fund told IPE in a statement.

In 2016 the supervisory board of the buffer fund decided to raise its the commodities exposure from 1% to 2% while divesting from energy-related commodity exposure.

The fund explained last year that gold was better suited to add “diversification and hedging in certain situations (inflation or recession)” than the previously preferred energy commodities.

In March the investment committee confirmed the decision to change the precious metal mandate from swaps to physical gold.

The fund told IPE: “The mandate has not been changed yet. The investment committee asked for the change to be implemented by year-end 2018.”

No further details were given on the mandate or the shift in strategy.

As per March 2018, the fund held CHF682m in gold and a minor investment in silver, with a target allocation to precious metals of 2%.

This means by year-end the swaps exposure to silver would have to be phased out and the precious metal portfolio would consist of physical gold only.

Switzerland remains one of the safest jurisdictions in which to own gold. Find out why in our Essential Guide to Gold in Switzerland here

News and Commentary

 

Gold inches up on weaker dollar (Reuters)

N. American gold ETF outflows up in May – World Gold Council (Reuters)

Perth Mint’s May gold sales dip to lowest in over 1 yr, silver sales up  (Reuters)

Mongolia's central bank launches campaign to increase gold reserves (Xinhua Net)

London house prices to fall this year (City AM)


Source: Texasbulliondepository.gov

Swiss government social insurance pension fund buys gold bars (IPE.com)

Texas Bullion Depository - America's first state-administered precious metals depository opens in Texas (Dallas News)

BIS intervention in gold remained steady in May (BIS.org)

New Swiss banking system based on 'sovereign money' would be progress (Bloomberg)

Which should you buy – bitcoin or bitcoin cash? (Moneyweek)

Gold Prices (LBMA AM)

06 Jun: USD 1,295.25, GBP 9,964.57 & EUR 1,101.48 per ounce
05 Jun: USD 1,292.25, GBP 1,966.73 & EUR 1,105.13 per ounce
04 Jun: USD 1,294.65, GBP 1,966.46 & EUR 1,103.82 per ounce
01 Jun: USD 1,299.15, GBP 1,976.83 & EUR 1,111.42 per ounce
31 May: USD 1,303.50, GBP 1,978.54 & EUR 1,113.58 per ounce
30 May: USD 1,298.60, GBP 1,979.27 & EUR 1,119.26 per ounce
29 May: USD 1,302.05, GBP 1,983.83 & EUR 1,130.57 per ounce

Silver Prices (LBMA)

06 Jun: USD 16.55, GBP 12.33 & EUR 14.06 per ounce
05 Jun: USD 16.39, GBP 12.26 & EUR 14.03 per ounce
04 Jun: USD 16.44, GBP 12.29 & EUR 14.03 per ounce
01 Jun: USD 16.42, GBP 12.32 & EUR 14.02 per ounce
31 May: USD 16.55, GBP 12.42 & EUR 14.17 per ounce
30 May: USD 16.37, GBP 12.33 & EUR 14.08 per ounce
29 May: USD 16.48, GBP 12.43 & EUR 14.26 per ounce


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Comments

Handful of Dust A wind is rising Fri, 06/08/2018 - 06:38 Permalink

Texans can now store their precious metals in a publicly backed secure vault close to home, as the United States’ first state-run gold depository opens for business in Austin.

A 23,000-square-foot building — operated by the private storage company Lone Star Tangible Assets — will serve as Texas' precious metals depository until 2019, when Lone Star is scheduled to open a facility double that size in Leander. Texas Comptroller Glenn Hegar became the first person to take advantage of the fully insured Texas Bullion Depository when he deposited his own gold and silver in the Austin vault earlier this week, according to his office.

 

Leander is 15 minutes North of Austin. I guess you can make an appointment and just drive there and open an account and gold bugs can drop off their truck of gold bars.

In reply to by A wind is rising

83_vf_1100_c Handful of Dust Fri, 06/08/2018 - 16:16 Permalink

  While I applaud TX for their efforts to store the college system gold, their repository holds no attraction to me. Texas has a lot of land. I own part of that land and I will keep my metals close at hand. When/if the SHTF the last thing I need to be doing is driving to Austin to stand in line hoping my AU will be returned only to discover the staff bugged out with it. Or, the Feds declared a national emergency and swooped in and took it all. "If you don't hold it you don't own it."

In reply to by Handful of Dust

gdpetti Thu, 06/07/2018 - 21:25 Permalink

Like most large corps.... these kinds of transactions occur at the top... in this case, the top of the financial pyramid scheme.. before the bust and transition to NWO... as things don't usually go smoothly during troubled times.. they've made the money, time to put it to use before it becomes worthless.

mosfet Thu, 06/07/2018 - 21:49 Permalink

Sad thing is that if it was Oil they were buying, it'd be up $3 a barrel on the news.  But we're talking about a criminally fraudulent Gold market.

Pandelis Thu, 06/07/2018 - 23:45 Permalink

so, the cheesemakers are awakening up ... time to end this party.  by the time their committees and subcommittees come around to actually buy smt ... it will be 2021 already

platyops Fri, 06/08/2018 - 01:43 Permalink

Do not buy gold to trade. Buy gold to hold your wealth. Only the very rich can make money trading. The average gold buyer should be thankful that gold will hold his wealth value.

voxpopuli Fri, 06/08/2018 - 06:33 Permalink

now, the funky thing in all this is that Switzerland sold at ridiculous prices (USD 400 / ounce) a good portion of its gold reserves after 1999, where thorough a referendum pushed by the leftists the previous requirement of having the CHF covered at 40% by gold reserves was abandoned. This measure was welcomed by everyone, IMF included, in order to weaken the Swiss intrinsic strength. As a reminder, Switzerland is the only direct Democracy left in Europe, and is a real "black spot" for the globalists and cultural marxists of this world.   

A good article is here : https://snbchf.com/chf/chf-history/sale-of-swiss-gold-reserves/

Today, the CHF is covered at something like 8 - 10% in gold. If the gold cover ratio is increased even only slightly, the CHF / USD will simply go to the sky ...

Calculus99 Fri, 06/08/2018 - 11:02 Permalink

Solid move. 

But whatever you do, DO NOT store it in London or NY.

Now, the next sensible move is to buy Bitcoin.

Here's the plan, buy 2% of assets and if it (hopefully) moves lower to under $5k allocate another 1%-2%. 

Gold + Bitcoin = A good retirement pot.  

silverer Fri, 06/08/2018 - 16:18 Permalink

Chicken shits. Why don't they go to COMEX, and do a 2 billion contract, and demand physical delivery? That will cook up the gold price a bit, eh?