Switzerland: A Global Gold Hub
Switzerland refines more than one-third of the world's gold despite having no domestic gold mines. Thanks to its four major refineries, the country transforms raw gold into high-purity bullion and has established itself as the world's leading gold refining center.
This position is largely the result of Switzerland's political stability, historical neutrality, and strong financial sector, which have made the country a key hub for the global gold trade.
The Hidden Impacts of Gold Mining
Behind this precious metal lie less appealing realities. Like all mining activities, gold extraction carries significant environmental impacts, including deforestation and the pollution of soil and waterways. In some regions, it is also associated with child labour and poor working conditions.
One of the distinctive features of gold mining is the use of mercury. This metal is used to bind fine gold particles together into a paste known as an amalgam. The amalgam is then heated, causing the mercury to evaporate and leaving only the gold behind.
The problem is that mercury is highly toxic. It threatens the health of miners, who often handle it without adequate protection, as well as that of local communities. Released into the air, soil, and rivers, it damages ecosystems and contaminates fish stocks. Mercury is primarily used in artisanal mining, where it remains a simple and inexpensive method of extraction.
Industrial and Artisanal Mining: Two Very Different Realities
An estimated 80% of the world's gold production comes from industrial mines, while the remaining 20% comes from artisanal and small-scale mining operations.
The main difference lies in how these mines operate. Industrial mines are generally mechanized and subject to regulatory oversight. Artisanal mines, by contrast, are often informal or illegal. They face greater risks related to mercury use, hazardous working conditions, and child labour.
Although artisanal mines account for only about one-fifth of global gold production, they provide a vital source of income for millions of people living in regions with limited economic opportunities.
The Importance of Traceability
A significant share of the gold imported into Switzerland is recycled gold. Since gold does not deteriorate, it can be melted down and refined indefinitely. At first glance, recycling appears to be a sustainable solution. However, in the gold sector, the concept can sometimes conceal traceability issues.
Gold originating from illegal mines may be exported to third countries, melted down, mixed with gold from other sources, and then resold as recycled gold. This is why traceability has become one of the most effective tools for reducing the risks associated with illegal mining.
Swiss Better Gold: Improving Industry Practices
To address the risks associated with illegal gold trade and improve conditions in artisanal mining, the non-profit Swiss Better Gold Association (SBGA) was established in 2013 by several private-sector stakeholders, including companies from the luxury and refining industries.
That same year, the initiative was developed in partnership with the Swiss State Secretariat for Economic Affairs (SECO), making Swiss Better Gold an example of collaboration between private actors and public authorities aimed at creating a more responsible gold supply chain.
Its approach is based on a simple principle: helping producers progressively achieve higher social, environmental, and governance standards while gaining access to international markets. The criteria cover areas such as human rights, gold traceability, working conditions, and the gradual reduction of mercury use.
In return, participating mines benefit from access to responsible buyers, technical support, and funding for community development projects. Gold certified under the Swiss Better Gold programme is sold at a premium, part of which is reinvested in social and environmental initiatives that benefit local communities.
Conclusion
Gold is often viewed as a symbol of stability and wealth preservation. Today, however, its true value also depends on how it is extracted, processed, and traded. In a world where expectations for transparency and sustainability continue to grow, traceability has become a key lever for making gold a more responsible investment.
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