Hello and welcome to the Goldco News Brief. I’m your host, Kevin Douglas. Today we’re going to take a brief look into the Swiss Gold Referendum and how this is likely to increase the price of gold worldwide.
Years ago, Switzerland had one of the strongest monetary policies in the world. It was so strong in fact, that many other countries around the world modeled their own monetary policies after Switzerland’s. However, back then, Swiss money was mostly backed by gold.
In the late 1990’s, when the rest of the world started ditching what’s known as the “Gold Standard”, Switzerland did as well. Soon after making the decision to move away from the gold standard, the Swiss National Bank sold more than 50% of its gold. Since then, they’ve either sold or leased most of the remaining gold.
Unfortunately, the new monetary policy isn’t working well in Switzerland and their consumers are starting to speak out. At the end of November, the country’s consumers will vote on what’s being called the Swiss Gold Referendum. If the vote passes, the Swiss National Bank will be required to repatriate any leased gold, maintain 20% of their assets as gold, and will no longer be able to sell gold. Essentially, the Swiss Gold Referendum aims to take the country’s gold off of the world market.
If this referendum does indeed pass, and it looks like it will, the basic laws of supply and demand tell us that the price of gold will skyrocket; giving us yet another reason to start looking seriously into gold investments!
Thank you for tuning in today, I’m Kevin Douglas with the Goldco News Brief.