Little discussion has been on the
important news prior to the referendum on November 30th regarding the
Swiss campaign to “save our gold”
One of the
largest groups of political representatives in the Swiss parliament are considered
to be the national conservative members of the SVP Swiss People’s Party. The SVP filed a initiative on August 26, 2011
with the Swiss government, Titled “Gold Initiative: A Swiss Initiative to
Secure the Swiss National Bank’s Gold Reserves”, later changed to “save our
Swiss gold initiative” This campaign is to retrieve the Swiss family’s gold and
considered to be the peoples gold. The gold was sold off by The Swiss National
Bank and the Bank for International Settlements. The initiative states that the
physical gold must be stored in Switzerland,
and total assets of the SNB must have 20% of assets backed by physical gold and
can not sell the reserves. Gold of the Swiss National Bank must be stored
physically in Switzerland.
The Swiss frank now backed by 25% instead of the 40% that was required back in 1997.
SVP blame the devaluation of the CHF on the lack of gold backing. The SVP argue
that the FED and CB increasing their money supply has devalued not only the CHF
but also the USD and EUR. The SVP say that if they hold gold to back the CHF it
would stop the devaluation. This vote will not only would make other countries
view gold as a huge monetary and safe asset, we would also see a huge increase
on the EUR itself. A few other Countries seem like they are swaying the same
way, we see China, Russia and
others stocking up on the precious bullion. This could be the biggest global
move for gold, as it would drive the gold prices sky high.