Gold may be a universally valued asset, but not all gold bars are created equal—at least when it comes to the standards of different trading hubs.

In London, the standard gold bar weighs 400 ounces. However, if traders want to deliver gold to settle contracts on the COMEX exchange in New York, they need to use 100-ounce or 1-kilogram bars. This difference in bar sizes creates a logistical challenge when large amounts of gold need to move across markets.

The Swiss Refining Bottleneck

Before gold can be sent to COMEX warehouses in the U.S., it often takes a detour through Switzerland. Why? Because Swiss refiners specialize in melting down 400-ounce bars and recasting them into the correct sizes for COMEX contracts. This extra step adds time, cost, and complexity to the process—especially when demand for gold is high.

In times of market stress or shifts in bullion holdings, this refining requirement can create a bottleneck. With many traders rushing to reposition their gold holdings, Swiss refiners have been experiencing longer wait times due to increased demand for their services.

A Crucial Link in the Gold Supply Chain

Switzerland plays a pivotal role in the global gold trade, acting as a bridge between major bullion markets. While gold’s physical form may seem simple, the refining process highlights the intricate logistics behind the world’s most valuable metal.

As investors and institutions continue to move gold across borders, the Swiss refining bottleneck remains a key factor influencing the speed and efficiency of bullion shipments. In times of heightened demand, this detour through Switzerland can mean delays, higher costs, and potential market disruptions.

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