Swiss gold firm MKS PAMP to finalise US expansion plans this year

By Dave Graham

DAVOS, Switzerland, Jan 23 (Reuters) - Swiss-based MKS PAMP expects to firm up plans to increase U.S. gold refining capacity this year, CEO James Emmett told Reuters, predicting demand would push prices to new records.

The precious metals firm has been expanding its operations in Oklahoma City, where sister firm APMEX is located.

"We have a very clear idea of the sort of volumes that we want to produce in the U.S. And whilst it wouldn't be quite as big as our facility in Ticino (Switzerland), it would certainly be a sizable volume overall," Emmett said on the sidelines of the World Economic Forum's annual meeting in Davos, Switzerland.

Emmett said the firm was considering everything from a joint venture to building a new facility and that he had been in the U.S. in December to explore options.

Commercial opportunities were driving plans Emmett described as "in the U.S., for the U.S., by the U.S.," he said, adding MKS PAMP needs a few months to work out the details.

"It is something that we would certainly want to have clarity on over the course of this year," said Emmett, noting that the company's analysts expect to see spot gold prices climbing to about $5,400 per ounce by the end of 2026.

MKS PAMP also aims to expand operations at its main facility in Castel San Pietro near Lugano in the southern Swiss canton of Ticino, he said.

The company accelerated its U.S. expansion plans following pressure on Switzerland from President Donald Trump over the U.S. trade deficit with the country in 2024.

A significant portion of the U.S. calculation of that deficit derived from including Swiss exports of gold there. Gold hit a fresh record on Friday near to $5,000 an ounce.

In August, Trump imposed 39% import tariffs on Switzerland, the highest in Europe, prompting officials and business leaders to come together to craft a plan that would reduce the U.S. trade deficit and boost Swiss investment in the United States.

Those efforts culminated in a preliminary agreement in mid-November to cut the U.S. tariffs on Switzerland to 15%.

Marwan Shakarchi, CEO of the parent group of MKS PAMP, was among a group of executives from Switzerland who visited Trump in the White House in early November, a meeting that officials say helped to pave the way for the deal.

Swiss and U.S. officials are scheduled to hold talks aimed at formalising a trade agreement over the coming weeks.