Friday, October 24, 2014

Switzerland Set To Make History? Will The People Demand A Return To Gold Backing Of Currency?

The Swiss people are set to vote on a historic campaign called the Swiss Gold Initiative. What is the purpose? To return Switzerland to a system of sound money founded on the back of Gold as money.

You see, the Swiss have a long history of strong employment economic prosperity based on a strong currency. But in recent years, the politicians in Switzerland have sold off a large portion of the Swiss gold near the bottom of the market and at the same time they have printed more paper money on a relative basis than any other country.

This may be set to change in the next 38 days though. The people of Switzerland will be voting on a measure that will require the Swiss National Bank to repatriate all physical gold held abroad. This represents around 300 tons of gold.

Not only that, but the initiative would require the Swiss National Bank to hold 20 percent minimum of its reserves in physical gold. This will give the Swiss Franc a 20 percent gold backing.

Lastly, it would outlaw any further sales of gold by the Swiss Bank.

This initiative is going to be voted on soon by the Swiss people and if passed will become a part of the constitution.

This may have a huge effect on the gold market in a positive way for higher prices as the Swiss would require governments to return the gold they supposedly hold on behalf of the Swiss as well as forcing the Swiss Bank to begin purchasing large sums of physical gold on the open market.