On Sunday the Swiss will go to the polls to vote on a referendum on gold. Referendums are part of Swiss life, last year there were 11 on topics ranging from abortion to the purchase of military jets.
On Sunday the Swiss will be asked the three questions regarding their countries gold. Mandate the Central Bank of Switzerland to hold 20% of their total reserves in gold bullion. Repatriate all Swiss gold vaulted in London and Canada, and stop all future sales of Swiss Central Bank gold.
The vote is being closely watched by Central Bankers and Governments around the world as a ‘yes’ vote could potentially cause a worldwide gold rush. If the vote is successful the Central bank would have to buy 1,500 tonnes of gold over the next five years which would mean buying 70% of the global gold mined each year. Many experts are expecting the price to soar if the vote is successful.
Switzerland was the last country in the world to remove an official gold backing to their currency and the central bank holds four ounces of gold per head of population. Traditionally the Swiss did not buy gold bar and coins as the Swiss Franc was considered as good as gold.
The Swiss referendum is just another example of the global rush towards gold and away from fiat money and none stop money printing said Koos Jansen a well-respected gold analyst. Jansen added that the Swiss people are acting out of fear that the Swiss National Bank is losing control and the country is be dragged into a worldwide currency war.