International Relations : Global Reports & Indices

Q 1 / 4

UPSC CSE Prelims 2023

Consider the following statements :
  1. Statement-I : Switzerland is one of the leading exporters of gold in terms of value.
  2. Statement-II : Switzerland has the second largest gold reserves in the world.
Which one of the following is correct in respect of the above statements?

EXPLANATION

Correct Option

Statement-I is correct. Switzerland is a significant global exporter of gold in terms of value. This position is primarily due to its advanced and extensive gold refining industry. Switzerland imports large quantities of raw or unrefined gold from various sources, processes it into high-purity gold products, and then re-exports it. This makes it a major hub for global gold trade and refining, rather than a producer with large domestic gold mines.

Statement-II is incorrect. Switzerland does not possess the second largest gold reserves in the world. Official gold reserves are typically held by central banks and governments. Countries such as the United States, Germany, Italy, France, and Russia hold substantially larger official gold reserves than Switzerland.

Incorrect Options

Options (a) and (b) are incorrect because Statement-II is factually inaccurate regarding Switzerland's global gold reserves.

Option (d) is incorrect because Statement-I accurately describes Switzerland's role as a leading exporter of gold.

SOURCEThe Hindu/Indian Express 2023