One of the very few remaining proper democracies in the world will vote on bringing the Swiss Gold back to Switzerland on November 30.
This is an initiative that could only happen in Switzerland. An influential member of parliament, Luzi Stamm, representing the biggest Swiss party SVP (Swiss People’s Party) started this initiative with two other parliamentarians.
According to Goldbroker.com, “On November 30, Swiss citizens will go to the polls to vote on three areas:
The Swiss National Bank would be forced to buy the equivalent of around 70 per cent of total global gold production
for the next three years, if passed.
Gold prices could easily double within a matter of weeks.
The Swiss National Bank would be forced to buy the equivalent of around 70 per cent of total global gold production for the next three years if the referendum being held in Switzerland next Monday is passed. Gold prices could easily double within a matter of weeks.”
Recent polls have suggested an early surge in the ‘yes’ vote to 42 per cent has declined in recent days. But the large number of voters declaring themselves undecided will make the result on Monday a cliffhanger for gold and silver investors.
Switzerland is a very small country but with a long history of gold ownership. A vote in favor in the Swiss Gold Initiative referendum would mean that Switzerland would have to buy 1,700 tonnes of gold. This represents 70% of annual world gold production. The Swiss National Bank has 5 years to acquire the 1,700 tonnes if the initiative passes.”
Not only will the referendum deal with gold repatriation but also seeks to stop all gold sales by the SNB (Swiss National Bank) and to require the SNB to hold 20% of its assets in gold.
The Swiss Parliament and the Swiss National Bank (SNB)) are against the initiative since it would stop their ability to freely print money. Swiss monetary policy used to be the soundest in the world, but in recent years Switzerland has joined other countries in abandoning a policy of sound money.”
Switzerland had 2,600 tons of gold in 1999 which was a significant amount in relation to the size of the country. At that time it was decided to sell 50% of the holding. Most of this was sold at the low of the market just like in the UK.
Egon Von Greyerz of Gold Switzerland says, “If it passes it will be a game changer and the Swiss government cannot change it. I think that the purchase of 1,700 tons over 5 years, this will be a trend setter for central bankers worldwide. Most central banks hold gold outside of their own country, and if this vote passes, many other countries will decide to repatriate their gold.
This SNB and the government are against the initiative because they want to print money when times are bad to buy votes. Swiss’s bank balance sheet is bigger than most western banks. They have 499 billion Swiss Francs printed since 2009. For decades, the Swiss franc has been a strong currency and the Swiss has been a strong economy. I remember when I started working there is 1969, one dollar was 4 Swiss francs. Today one dollar is 95 Swiss cents.”
Most governments and central banks officially dislike gold because it reveals the decline in the value of paper money. Since 1913 when the Fed in the USA was founded, all major currencies, including the Swiss Franc, have lost between 97% and 99% of their value against gold.
Voltaire said already in 1729: “Paper money eventually returns to its intrinsic value – ZERO.”
There is clearly not far to go for the major paper currencies to go to zero. Although Switzerland’s economy is in better shape than many, the country has sadly followed the same destructive monetary policies as other countries in later years.
This Swiss referendum is a very important initiative to fully restore confidence in the Swiss Franc and in Switzerland as one of the safest nations in the world. It is therefore critical that the Swiss people and the rest of the world is made aware of this initiative. If successful it could be the first step towards a new monetary system based on sound money rather than debt and money printing.
If successful it could be the first step towards a new monetary system based on sound money rather than debt and money printing.