In the late 1940s, while the gold market in London was still closed after the
war, the Zurich triumvirate of Crédit Suisse,
Swiss Bank Corporation and Union
Bank of Switzerland gained hold of the growing physical market to Italian
jewellery makers, the Middle East and India. They were often the main buyers in
London when the market re-opened in 1954.
In 1968, while the London market was briefly closed when the official price of
$35 an ounce broke free, the three Swiss banks did a deal with South Africa, then
coming to the peak of its output, to take most of their gold. The former Soviet
Union also chose the Zurich banks for most of its sales in the 1970s and 1980s.
Today, Crédit Suisse First Boston (CSFB) still centres its global physical business
through its Zurich desk. CSFB also retains ownership of the Valcambi
refinery located in the Swiss canton of Ticino. Union Bank of Switzerland (UBS
AG) centres its gold operations, in terms of the liquidity of the bank, in Zurich
and is a minority shareholder in the Metalor
refinery. UBS AG is also a market-making member of the LBMA in London.
See Also: Switzerland Markets in 2000;
Swiss National Bank.