Please visit my blog for the videos and legal disclaimer:Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.
"The Swiss Gold Initiative will allow the Swiss people to vote on the fate of their financial system and partially back the Swiss Franc with gold. Citizens will vote on November 30th.
Learn more about the Referendum here: http://dailysilverupdate.com/blog/201...
But this has rapidly changed during the past few decades as the Swiss government quietly removed the 40% gold backing of their currency from the revised Federal Constitution which was adopted by a majority vote in 1999. Since 2008, the Swiss National Bank's balance sheet has expanded 5 times from CHF 100 billion to CHF 500 billion. Therefore due to dissatisfaction with the conduct of Swiss monetary policy and Swiss banking policy, the Swiss People's Party (SVP) have collected 100,000 signatures from Swiss citizens calling for a referendum on gold.
What is the Gold Initiative Referendum?
On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on:
1) Returning their national gold which is held abroad back to Switzerland
2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold
3) Prohibiting further gold sales
What will a "YES" vote mean for Switzerland and gold?
If the referendum passes, Switzerland's central bank will swallow up a whopping 1500 tons of gold over a period of 5 years to support the underlying value of their currency. A currency backed by gold also means that the government and central bank cannot manipulate the currency supply by printing endless amounts of money without retaining a relative amount of gold.
The Switzerland National Bank would also need to bring back 300 tons of gold that is currently in the UK and Canada. If this gold is available for delivery, it should return immediately, however Germany recently had a different experience. They requested to have 647 tons returned to their country from the Fed but all they have received so far is 5 tons! The Fed said that this process would take 5 years, however a measly 5 tons is a very small fraction of what they are owed. If Switzerland has a similar experience to Germany, this process could take even longer than the projected 5 years of getting this process complete.
What effect will this have on gold?
A YES vote in the Swiss Gold referendum would mean that Switzerland would have to buy upwards of 1,500 tons of gold at current prices. To put this in perspective, 1500 tons equals 48.225 million troy ounces of gold which is valued at approximately $58.9 billion. This would likely have an immense impact on the price of gold and constrain supply, since this amount is approximately 70% of annual world gold production. All of that physical gold will be extremely difficult to acquire without effecting the gold price at these suppressed levels while China and India are buying with both hands."
Video: Gold Referendum In Switzerland - November 30, 2014.
On November 30th, voters in Switzerland will head to the polls to vote in a referendum on gold. On the ballot is a measure to prohibit the Swiss National Bank (SNB) from further gold sales, to repatriate Swiss-owned gold to Switzerland, and to mandate that gold make up at least 20 percent of the SNB's assets.Swiss Gold Referendum: What Is It All About? UBS: 1,500 t Of Gold Buying By SNB At Stake.
Arising from popular sentiment similar to movements in the United States, Germany, and the Netherlands, this referendum is an attempt to bring more oversight and accountability to the SNB, Switzerland's central bank...DailyReckoning."
UBS: If The Referendum Passes Swiss Bank Would Have To Buy About 1,500 t of Gold over 3 years.
It is the very good speech, but the most significant here is the place where it is happening: Swiss Parliament. It could be very much the beginning of the global reset.
And who is buying Gold now:
Swiss Gold Referendum: People of Switzerland Demand Global Gold Recall Despite Central Bankers.
"Mass media is very slow to pick up on this groundbreaking development in Switzerland. Scotland referendum, Catalonia quest for independence will be just orchestrated "democratic noise" compare to this real democracy in action and its implications for the worldwide financial system. China or Switzerland - who will be first to create the gold backed currency now? Read more."
"In a word association game, If I said Switzerland, you might say cheese or chocolate or maybe the alps. But another common item everyone associates with the Swiss is their money. Their banks. Their currency.
Soon, that currency could change in a big way. This November, a Swiss Gold Referendum is going to a vote, and the repercussions, one way or the other, could cast a shadow of uncertainty on the US dollar. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, not it's less than 8 percent.
If THIS VOTE goes through, the Swiss will be forced to raise the gold reserve back up to 20 percent.
Joining us today is radio host Charles Goyette. He and Congressman Ron Paul have talked about central banks at great length on his radio show. Today, we'd like to get HIS input on the Swiss Gold Referendum. NextNewsNetwork"
"There is already support for this referendum and I am expecting the gold market to start paying more attention, especially if the polls show the vote will be close," said Hansen.Currently, according to data compiled by the World Gold Council, Switzerland holds 1,040 metric tons of gold making up 7.7% of its reserves.In a research note published Sept. 24, Analysts at UBS said that if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. "1500 tonnes equates to half of the world's annual production," they said in the report."That kind of gold buying would put what we've recently seen in China to shame," said Hansen. Read more."
Disclosure: The author is long TRRXF, ILHMF.