Friday, November 28, 2014

Swiss Gold Initiative Vote on November 30th

The Swiss gold initiative will go to a vote of the people on Sunday November 30th. This is the referendum that would require the Swiss National Bank to buy back some sold gold for reserves and to maintain 20% of its reserves in gold. It allows for 5 years to acquire the gold. The Swiss banking establishment opposes the referendum. Those supporting the referendum are concerned about too much fiat money creation and that the nations gold reserves were sold at low prices. It would also forbid the nation from future sales of gold reserves.


With the vote coming up soon, here are two pretty good articles you can read on it.

Polls have been back and forth and many think the vote will be close one way or another. In order to pass, the referendum has to get a majority popular vote nationwide and also pass in a majority of the 26 Swiss Cantons (think of these like counties or states in the US).

The gold market has not given any indication as to how it thinks the vote will turn out. Some believe a Yes vote will give a quick boost to gold prices. Others say it may not because the time frame to buy the gold is over 5 years. 

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