Courtesy of Mish.
A number of readers have asked me to comment on the Swiss Gold Referendum and what it may mean for the price of gold.
Let’s start with a recap of the of the three primary points that citizens in Switzerland will vote on.
Switzerland Gold Initiative
- Halt all Swiss National Bank (SNB) gold sales
- Repatriate Swiss gold held in foreign vaults (UK and Canada)
- Establishes minimum 20% level of SNB Assets in gold
Of course, central bankers everywhere are horrified by the idea they should have to do anything, especially hold sound assets.
And in a flurry of fearmongering by the central bank and inflationists in every corner, it appears the initiative is headed towards defeat.
What If?
Polls aside, let’s play a bit of “What If?”
Specifically, what would happen to the price of gold if the referendum passes?
Spanner in the Works
Variant Perception says Swiss Gold Referendum: A Spanner in the Works.
As polls continue to swing around ahead of the Swiss gold referendum on 30th November, we expect increased volatility in the FX and gold market.
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