The Swiss will head to the polls on the 30th of November to vote in a referendum on gold. As the referendum gains momentum the Swiss Central Bank (SNB) is coming under increased scrutiny over their management of the countries gold.
The (SNB) on average have sold one tonne of gold every a day for the last five years.
They have been criticized for selling 1,550 tonnes of gold too cheaply. The SNB reportedly sold the majority of the gold reserves between $300 and $500 per ounce achieving only $620 million dollars in sales.
Gold as a percentage of Switzerland’s foreign reserves currently stands at 7.8% down from 29% in 2006.
If the Swiss vote “yes” the SMB will have to hold 20% of their total reserves in gold bullion. At a gold price of $1,200 per ounce this would cost the SNB $6 billion dollars.
Switzerland mines no gold, but is the world’s leading refining centre and vaults a significant amount of Sovereign and privately owned gold. Switzerland has the world’s 8th largest gold reserves and was the last country in the world to back their currency by gold.