Swiss Central Bank Moved Its Gold From Berne to a Federal Bunker in Kandersteg
Swiss Central Bank Moved Its Gold From Berne to a Federal Bunker in Kandersteg
Investigative analysis revealing the secret locations and movements of Switzerland's massive gold reserves
Introduction
In Switzerland it's a state secret where the central bank stores its gold domestically. From all the information I could gather I conclude the Swiss central bank primarily stores its gold—and that of foreign central banks and the Bank for International Settlements—on Bundesplatz 1 in the capital Berne.
This vault may be one of the largest globally. However, due to a renovation the vault is now empty. The metal has temporarily been transferred to a federal bunker near Kandersteg, deep in the Swiss mountains.
State Secret Investigation
What led me to research this topic is a multi-year delay of a gold shipment by the Austrian central bank (OeNB) from London to Switzerland. According to my analysis, London isn't the problem. OeNB's shipment was supposed to be in Berne by now, but due to a delay in the renovation of the vault the gold hasn't been transferred yet.
Table of Contents
The Swiss Have Been Digging Caves for Centuries
If there is one country that excels in building tunnels and caverns, it's Switzerland. Berne was founded around 1200 on a peninsula in the river Aare. The peninsula is shaped as a hill due to the wear of the water. Enclosed by the Aare, the Old City could be easily defended by a wall at the West.
Medieval Foundations
Many early inhabitants had vineyards outside the city. Already in the 13th century cellars were being constructed below buildings for wine storage. The soil in Berne, consisting mostly of gravel and sand from glaciers, is well suited for construction.
Modern Engineering
The first tunnel in Switzerland was built in 1707 to ease passage over the Gotthard Massif Mountain. Today, tunnels total an astonishing 2,000 kilometers in length.
Military Infrastructure
In the 1880s Switzerland built fortifications in the Alps for army retreat and defense. During WWII and the Cold War, a network of military tunnels and bunkers was added, including 300,000 fallout shelters.
UNESCO Heritage Status
Since 1983 the Old City of Berne is UNESCO world heritage site for its exceptionally coherent planning concept. Berne has always retained its historical character, presenting variations of the late Baroque period and Late Middle Ages. Today, many cellars are used as bars, restaurants, shops, and storage facilities.
Switzerland's Vast Gold Market
Switzerland is one of the largest physical gold markets globally. Not very much is known about it though, because discretion is one of the services that make this market attractive.
Before the 1930s banking secrecy was an unwritten rule in Switzerland. This rule was enshrined in legislation in 1935, which, together with political neutrality, made Swiss banks attractive for foreign capital: currency, bank deposits, and gold.
Swiss Gold Market Dynamics
When in 1968 the Gold Pool collapsed and the London Bullion Market closed for two weeks, Swiss banks reacted aggressively by trying to take over market share from London. Refining capacity began shifting from London to Switzerland. Currently, there are no LBMA accredited refineries left in the U.K., while Switzerland hosts four major operations.
This market infrastructure supports both commercial gold trading and central bank storage needs. For investors interested in accessing these markets, understanding current gold pricing and considering physical gold investments provides exposure to the same underlying market dynamics that drive Swiss gold storage demand.
The Swiss Central Bank's Main Gold Vault Is in Berne
There is a considerable amount of evidence that most of SNB's gold has always been stored in Berne. An important source for this research is a book published by SNB in 2012, celebrating the 100th anniversary of their head office in Berne.
Bundesplatz 1, Berne
SNB's head office completed in 1912, located in the Old City next to the Federal Palace. Department II in Berne took responsibility for bank notes and the management of gold reserves.
- Gold vault in basement since 1912
- Multiple renovations and expansions
- Estimated up to 40 meters deep
- Potentially 10,000 square meters
- Houses foreign central bank gold
Bank for International Settlements
BIS states they offer central banks "gold location exchange, safekeeping and settlement: loco London, Berne or New York." The Berne reference has been used since the 1930s.
- International gold settlement hub
- Central bank gold storage
- Active trading and testing facilities
- Heavy-duty vault infrastructure
Historical Evidence and Renovations
After WWII, SNB's gold reserves increased significantly. The building underwent multiple renovations:
Classified Information
I tried to obtain plans, drawings, and building permits from all renovations from the building archive and SNB's own archive. Without exception I was told all documents are classified as "SECRET" or "sensitive," and can't be viewed. TOP SECRET
Eyewitness Accounts
Othmar Dillon, who worked at Berne's cadastral survey, reported being inside the vault multiple times since the 1970s. According to Dillon, the vault reached down to the level of the river Aare, implying it's 40 meters deep in total. A 2018 investigation revealed SNB's basement stretches about 10 meters underneath Bundesplatz square.
Kandersteg's Federal Bunker
In 1999 Swiss journalists discovered that the government had arranged a classified command facility near Kandersteg in the Alps, 40 miles south of Berne, to hide during a nuclear attack. Since 2004 the exact coordinates of the facility are publicly known.
For nearly two decades not a word was written about any gold being stored at the bunker dubbed "K20." Then, in 2018, independent journalist Henry Habegger reported K20 also incorporates an SNB vault. People familiar with the matter shared that when K20 was built, SNB took the opportunity to acquire a nuclear bomb-proof vault for its gold reserves.
Military-Grade Security
K20 was designed as a nuclear attack shelter for government officials, providing the highest level of security and protection available.
Massive Capacity
The facility has room for 6,000 tonnes of gold, far exceeding Switzerland's current reserves of 1,040 tonnes.
Observed Activity
Kandersteg residents have often seen armored trucks driving through, escorted by army vehicles with machine guns, indicating active precious metals transport.
Strategic Location
The choice of Kandersteg for gold storage demonstrates Switzerland's strategic approach to precious metals security. For individual investors, this level of institutional confidence in physical gold storage reinforces the importance of precious metals diversification in investment portfolios, even as markets track current silver prices and other market indicators.
Renovation Timeline and Evidence
According to my analysis, all gold inside the vault in Berne has been moved to Kandersteg but will return within a few years. Here's the evidence:
Timing Coincidence
It can't be a coincidence that OeNB has limited access at its SNB vault in Switzerland, Bundesplatz 1 is renovated around the same time, and a story about an active gold vault in Kandersteg pops up in Swiss media around the same time as well.
Market Implications
This massive gold storage operation demonstrates the continuing importance of physical precious metals in central bank reserves. The scale of infrastructure required—including nuclear-proof bunkers and military-escorted transports—reinforces gold's role as the ultimate store of value. Understanding these institutional dynamics helps inform individual investment decisions in precious metals markets.
Conclusion
Normally, OeNB's gold, other foreign central banks' gold, the BIS's gold, and most of SNB's gold is at Bundesplatz 1, but due to the renovation it was moved to K20.
I conclude SNB prefers to keep most of its gold in Berne, because historically this is the main vault. After the Second World War, when SNB's reserves ballooned, vaults could have been built anywhere in Switzerland, yet SNB decided to enlarge the vault at Bundesplatz.
Historical Preference
Despite having options to build new facilities anywhere in Switzerland, SNB consistently chose to expand the Berne location, indicating strategic and operational preferences.
Temporary Relocation
The fact that OeNB's gold in Kandersteg will be returned to Berne indicates SNB's own gold will be returned as well. If K20 was superior, permanent relocation would have occurred.
Future Operations
The renovation in Berne is set to be completed in 2024. Then the gold can be returned to Bundesplatz 1, OeNB will have normal auditing access, and additional transfers can proceed.
Investment Perspective
This investigation reveals the extraordinary lengths to which nations go to secure their gold reserves—from multi-story underground vaults to nuclear-proof mountain bunkers. This institutional behavior validates the enduring importance of precious metals as wealth preservation assets, supporting the case for individual investors to maintain meaningful precious metals allocations in their portfolios.
Key Evidence Summary
- Multiple renovations of Bundesplatz 1 vault since WWII, all classified as secret
- Eyewitness accounts confirming massive vault complex reaching 40 meters deep
- Timing correlation between renovation delays and Austrian audit access limitations
- Kandersteg bunker capacity of 6,000 tonnes for temporary storage
- BIS confirmation of Berne as major international gold settlement location
- Planned return to Berne upon renovation completion in 2024
Final Analysis
This investigation into Swiss gold storage reveals a sophisticated network of vaults, bunkers, and security measures that spans from historic city centers to remote mountain fortresses. The temporary relocation of potentially thousands of tonnes of gold demonstrates both the scale of global central bank reserves and the extraordinary measures taken to protect them.
The Swiss model of gold storage—combining urban accessibility with military-grade security—reflects centuries of expertise in both banking and engineering. As the renovation of the Berne facility nears completion, this episode provides unique insight into the normally secretive world of central bank gold management.
For observers of precious metals markets, this case study illustrates why physical gold remains the preferred reserve asset of central banks worldwide, requiring infrastructure investments measured in decades and security measures rivaling military installations.