The Swiss National Bank (SNB) is currently facing significant financial challenges. This situation has arisen due to a sharp decline in its investments in major technology companies.

Notably, companies such as Nvidia, Google, Microsoft, and Meta have seen substantial losses. For instance, Nvidia has experienced a remarkable loss of $600 billion in market value, adversely affecting the SNB’s substantial holdings in these firms. This downturn is impacting the bank’s profits, which are essential for financing Bern, the cantons, and local municipalities.

In contrast, gold prices have surged to $2,800 per ounce this week, showing no signs of a slowdown. The SNB’s choice to sell 1,000 tons of gold two decades ago at historically low prices has proven to be a costly decision. If the bank had maintained its gold reserves, it would be in a significantly stronger financial position today. Currently, the SNB is exposed to the volatility of the tech sector, underscoring the risks linked to its existing investment strategy.

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