Luxembourg became an important market for European investors during the 1980s
after the imposition of value added tax on gold coins in Germany, the abolition
of anonymous gold buying in France and a short-lived
tax on gold delivered in Switzerland. Luxembourg
offered anonymity and no tax. Some 90 companies started trading gold there, but
the abolition of value added tax on bars and coins in Germany from 1993, and declining
investor interest in gold, led to a rapid decline in business.
However, Commerzbank
International SA, the Luxembourg affiliate of Germany's Commerzbank,
has expanded its global gold activities. Its gold trading is centred in Luxembourg,
while sales offices for gold have been established in New York, Mumbai (Bombay)
and Hong Kong. The bank also has a 35% holding in the Argor-Heraeus
refinery in Switzerland, and is a member of the London Bullion Market
Association (LBMA).
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