Whether the votes go yes or no its good PR for gold. I am going to have my finger on the buy button for the next few weeks watching very carefully. America has only sent Germany 5% of the 300 tonnes they requested a while back, wonder why... Another big move coming up is LBMA is putting together a new model for Gold pricing.
:lol: no. Apparently it was to appease a minority party when Merkel was up for election, they didn't really want it.
Thinking about this... Aloud, as it were... What if, rather than buy the necessary gold in to back it 20%, what if they just raised the price of gold by 12.3%, as measured in ChF? That would mean they could provide a 20% with their current holdings, and it would significantly devalue the ChF relative to other currencies. That would help with their peg... They've been struggling to keep it below 1.2 to the euro for some time. Mind, it would be inflationary for the Swiss, and I doubt the ECB and the Fed would be pleased to find their currencies rising against the Swiss Franc, but would it matter that much? Or have I misunderstood something?
Well the conservative party that made the referendum happen is a very popular political party in Sweden. The Yes vote is looking good at this stage. Its not like the Greens here in Australia, it's more like the liberals. It has a 50/50 chance IMO.
sweden? the svp is a right wing conservative anti immigration party popular in german speaking switzerland. not sure if they have the 50/50 support, especially in the other language cantons.
Switzerland. Even if the party isn't as popular as you think, Gold is very popular with the swiss, always has been. Even if the vote doesn't go through just the thought is good PR for gold. At the end of the day markets are just sentiment.
http://www.goldcore.com/goldcore_bl...oll_Shows_Pro_Gold_Side_In_Lead_At_45_Percent The fear mongering will have to up the ante
Something is missing from the they will have to buy 164 tonnes..... HOW much do the have in New York Depository.... is it 1 tonne or 10 tonnes or 100 tonnes or 1000 Tonnes .. my point is with out the current holdings we wont know how much they will need to buy to get to the 20% required.. it could only be a relatively small amount ( that is relatively small if you are a Central Bank) or it could be the whole lot ???
I based my calculations on the premise that their current monetary base is backed by gold to 7.7%, as advertised, and that the reported volume of money is as quoted. of course, if those numbers are inaccurate, the calculations will be too.
Over the past few years the SNB has been an active seller of the precious metal to the extent that gold as a percentage of Switzerland's foreign reserves has fallen from 29.0 percent in 2006 to 1,040 tonnes or 7.8 percent in September 2014. (Source: SNB Monthly Bulletin and World Gold Council) http://www.forbes.com/sites/stephenpope/2014/10/25/switzerland-set-to-greedily-grab-gold/
Perhaps what is of greatest concern is that the current government appear to be blissfully ignorant of where Swiss gold is located. When asked where the SNB gold reserves are currently stored, a spokesperson for the Federal Department of Finance answered in parliament: "I cannot say, because I do not know, because I do not need to know and because I do not want to know"
Great interview about the upcoming Swiss gold referendum. [youtube]http://www.youtube.com/watch?v=aWrrzVqYMeE[/youtube]
the svp voted no against their own referendum, looks highly unlikely to succeed. http://www.blick.ch/news/politik/di...teispitze-bootet-die-basis-aus-id3227812.html
Quite a long read, but as always insightful and brilliantly written. http://www.mauldineconomics.com/ttmygh/this-little-piggy-bent-the-market
The Swiss would have to sell their foreign reserves to buy the gold. It would be the only way to buy it without further expanding its central bank's balance sheet forcing them to buy even more gold. This would weaken the euro against the franc given most of the Swiss foreign reserves are in euros and put pressure on franc/euro peg. There is no way this will be allowed to get up.
