The Swiss will head to the polls of the 30th November to vote in a referendum on gold. The “Save Our Swiss Gold” initiative will ask the Swiss population to vote on the following three measures.
To repatriate all Swiss gold vaulted in London and Canada.
Stop all future sales of Swiss Central Bank gold.
Mandate the Central Bank of Switzerland to hold 20% of their total reserves in gold bullion.
Results from the first opinion poll confirmed that 45% of Swiss intend to vote “Yes” with 39% indicating they will vote “No”. The result is being seen as a good barometer of voter sentiment with only 5 weeks remaining before polling day.
The Swiss Central Bank is against the initiative as it would stop their ability to print money. Switzerland was the last country to officially back their currency by gold.
If the Swiss vote “yes” the Central Bank would need to spend $50 billion to bring the reserve ratio up to 20%, which equates to a staggering 1,000 tons of gold. Industry insiders doubt the Swiss Central Bank could buy such a large amount of gold at current prices. Others speculate the Swiss gold held abroad has already been sold into the market.