Swiss central bank profits boosted by gold price surge / Photo: Fabrice COFFRINI - AFP
-
WhiteBIT Launches Bitcoin Lightning Network Support, Powered by Voltage
-
ONAR Advances Nasdaq Listing Preparation Following Advertise Purple Acquisition and Financing
-
Oil surges, stocks sink as US reportedly eyes fresh Iran strikes
-
Thailand opens extradition process for reporter sought by China
-
Anne Carson: modern takes on Greek classics
-
France struggles to wean social housing off gas
-
Canada's Anne Carson wins Nobel literature prize
-
Germany lifts GDP forecast as economy withstands Iran war
-
Ethiopia drones hit Eritrean troops in Tigray
-
Sri Lanka appoints Kusal Mendis as Test captain
-
Russian strike on buses kills 30 in frontline Ukrainian city
-
Norris confident McLaren can shine in Singapore
-
Thailand begins extradition process against Chinese journalist
-
Alex Bodi pushes ahead with expansion: ALIX LASERS showroom planned for Bucharest
-
Quarantine, unease and rumours: Russian city grapples with plague scare
-
Fossil fuels off COP31 agenda as global output keeps rising
-
Taiwan says exports hit record in September on AI demand
-
Haze not 'a threat' to Singapore F1 race: organisers
-
Marc Marquez vows to 'attack' Martin's lead at Indonesian MotoGP
-
COP31 organisers say to seek 'ambitious' action with their text
-
Diplomats, schools in Saudi take safety measures after blasts heard: sources to AFP
-
Bartunkova thrashes Muchova to reach China Open semi-finals
-
In Beijing, EU trade envoy says deficit with China 'unsustainable'
-
Drone hits Yandex data centre, in first such attack on Russia
-
Sri Lanka's de Silva quits as Test captain
-
Oil prices surge and stocks sink on fresh inflation worries
-
Alcaraz feeling 'mentally fresh' ahead of Shanghai return
-
AI startup Manus raises $500m after Meta acquisition blocked by China
-
Israel drastically reduces British diplomatic presence in Jerusalem
-
From refuge to repatriations: Malaysia's Myanmar U-turn
-
Stocks fall further as oil surge fans fresh inflation worries
-
Morikawa says LIV players face 'business decision' after Rahm exit
-
North Korea demands South show 'utmost respect' to restore relations
-
Tenzing Norgay's son says Himalayas sending climate warning
-
Saudi says three dead in airport attacks claimed by Houthis
-
On your bike! Bottas opts for two wheels to reach Singapore GP
-
'Mad dream': New showcase for African film opens in London
-
Alcaraz, Sinner, Osaka commit to Australian Open '1 Point Slam'
-
All Blacks coach Rennie says Wallabies exit 'part of the game'
-
Dodgers beat Braves to advance in MLB playoffs, Rays oust Yankees
-
The growing protests against India's poll body - and PM Modi
-
'A sun as black as my lungs': how corruption crucified a polluted Albania city
-
Stocks fall further as oil spike fans fresh inflation worries
-
The British historian helping the French rediscover de Gaulle
-
Bad COP, worse COP? EU tempers hopes for UN climate summit
-
Dodgers beat Braves to advance, Guardians survive in MLB playoffs
-
Rookie Henry named in Wallabies midfield to face All Blacks
-
Latin American, Caribbean women top Nobel literature buzz
-
Housing crisis set to dominate Spain's snap election
-
US says Fiji-based Chinese official paid bribes for Beijing
Swiss central bank profits boosted by gold price surge
Switzerland's central bank on Friday reported a profit of 12.6 billion Swiss francs ($15.7 billion) for the first nine months of 2025, boosted by soaring gold prices and rising stock markets.
The Swiss National Bank's gold holdings were unchanged, but their value skyrocketed as investors rushed to buy the precious metal as economic and geopolitical uncertainties drove prices to record highs.
At the end of September, the price of a kilogramme of gold stood at 98,024 Swiss francs, compared to 76,011 francs at the end of December 2024, representing a valuation gain of 22.9 billion francs for its gold holdings, the SNB said in a statement.
The SNB recorded 23.1 billion Swiss francs in price gains on equity securities and instruments. This gain helped offset exchange rate-related losses totalling 46.3 billion francs.
Like gold, the Swiss franc is considered a major safe-haven asset. Amid the climate of uncertainty, the Swiss currency has appreciated significantly since the start of the year, particularly against the dollar.
In 2024, the SNB's profits reached 62.5 billion Swiss francs after the first nine months and then rose to 80.7 billion francs by the end of the year.
Arturo Bris, a professor of finance at the International Institute for Management Development in Lausanne, has voiced concerns about a potential artificial intelligence technology bubble.
According to his calculations, using figures from the US Securities and Exchange Commission, six tech stocks (Nvidia, Microsoft, Apple, Amazon, Alphabet and Meta) alone account for more than $48 billion in the SNB's portfolio.
To diversify its reserves, the Swiss central bank's equity portfolio uses a passive strategy that reflects stock market indices rather than picking stocks out to generate profits.
These six major stocks alone are responsible for a very large portion of the rise in the US stock market, Bris told AFP.
"As an economist, you cannot speak of a bubble before it happens," only once it has burst, he said.
However, "there is a significant over-valuation of these stocks", and if AI is a bubble that bursts and triggers a crash, "the risk is very high" for the SNB, he warned.
U.Shaheen--SF-PST
