Swiss To Vote On Gold Repatriation - "Gold Is The Only Valuable Asset On The SNB's Balance Sheet"

Tyler Durden's picture




 

A few weeks ago, we wrote of the Swiss People's Party's efforts to gain enough signatures to force the Swiss National Bank (SNB), who 'supposedly' guarantees the price stability in Switzerland, to stop selling its gold reserves. This last week, as the FT reports, they reached the required 100,000 signature mark and on Thursday the federal chancellery confirmed Switzerland is to hold a referendum that would ban the central bank from selling its gold reserves, force it to keep at least 20% of its assets in the metal, and  repatriate gold reserves held abroad and keep them at home. Following Cyprus' forced sales and discussions of the net wealth in other European peripheral nations, proponents of the Swiss measure flatly reject the idea of sales, arguing that disposals of gold reserves at low prices between 2001 and 2006, as well as more recently, have cost Switzerland billions of Swiss francs. The "Save Our Swiss Franc" initiative proclaims, "today gold is almost the only really valuable asset left on the SNB’s balance sheet." The SNB, however, is concerned at, "the monetary policy implications of the demands in the initiative." A date for the referendum has not yet been set - but the FT notes that previous 'referenda' have taken up to several years from acceptance to actual vote.

Via The FT,

Switzerland is to hold a referendum on a popular measure that would ban the central bank from selling its gold reserves and force it to keep at least 20 per cent of its assets in the metal.

 

Under the terms of “Save our Swiss Gold”, which is led by members of the ultra-conservative Swiss People’s party, the Swiss National Bank would have to repatriate gold reserves held abroad and keep them at home.

 

...

 

Governments in the eurozone’s beleaguered southern periphery tend to hold a large part of their total foreign reserves in gold – the Italian central bank holds 2,451 tonnes, more than 70 per cent of its total reserves, while Portugal’s holding of 383 tonnes accounts for 90 per cent.

 

...

 

They insist that the SNB’s gold reserves, which stood at SFr49.5bn at the end of February, accounting for about 10 per cent of its balance sheet, are the best store of value available to the central bank.

 

..."Today gold is almost the only really valuable asset left on the SNB’s balance sheet,”...

 

...

 

“We have considerable concerns with regard to the monetary policy implications of the demands in the initiative,” the [SNB] said, adding that it would provide a fuller response “in due course”.

 

A date for the referendum has not yet been set. However, it is not uncommon for the period between an initiative being accepted for referendum and a vote being held to extend to several years.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 04/21/2013 - 21:39 | 3482152 FieldingMellish
FieldingMellish's picture

Blessed are the cheesemakers!

Sun, 04/21/2013 - 21:42 | 3482162 I think I need ...
I think I need to buy a gun's picture

i'm really starting to panic

Sun, 04/21/2013 - 21:50 | 3482210 AllThatGlitters
AllThatGlitters's picture

Gold is trading higher tonight:  http://www.pmbull.com/gold-price/

Everybody should panic and get themselves some physical.

 

Sun, 04/21/2013 - 21:55 | 3482228 fonzannoon
fonzannoon's picture

I can't walk away from my computer for more than an hour and these fuckers are going to vote on whether to keep their gold or not a few years down the road. I must be nuts.

Sun, 04/21/2013 - 23:21 | 3482490 Dr. Engali
Dr. Engali's picture

They know that they can vote for the return of their gold, but it not there for them to get.

Sun, 04/21/2013 - 23:25 | 3482499 tiger7905
tiger7905's picture

Jim Willie Dubai contact see's $500/oz gold premium in a few months time for physical.

 

http://goldandsilverlinings.com/?p=2141

 

 

Sun, 04/21/2013 - 23:42 | 3482532 Long-John-Silver
Long-John-Silver's picture

The premium on my physical gold is infinity.

Mon, 04/22/2013 - 00:00 | 3482568 Dr. Engali
Dr. Engali's picture

What are you talking about? You don't have any gold left. Remember you we're telling me how you lost it in an unfortunate boating accident.

Mon, 04/22/2013 - 01:52 | 3482719 Boris Alatovkrap
Boris Alatovkrap's picture

Better than is unfortunate botox accident.

Mon, 04/22/2013 - 05:54 | 3482920 Acet
Acet's picture

A frozen half-smile half-rictus of pain in one's face. We're in Joker territory now ...

Mon, 04/22/2013 - 06:20 | 3482938 GetZeeGold
GetZeeGold's picture

 

 

The Swiss and German expedition to actually find the gold is going to be epic.

 

They should make it a TV series. A lot more interesting than dancing with the washed up "stars". 

Mon, 04/22/2013 - 12:22 | 3484088 Boris Alatovkrap
Boris Alatovkrap's picture

Face? No, Boris is use Botox for calm temperament of household pet. You are to use Botox on face!?

Mon, 04/22/2013 - 00:19 | 3482601 RafterManFMJ
RafterManFMJ's picture

Yea well, the premium on MY gold is infinity+1.

Mon, 04/22/2013 - 01:05 | 3482661 Dead Canary
Dead Canary's picture

I'd sell my silver for a night with Scarlett Johansson.

(And $500 an ounce of course)

Mon, 04/22/2013 - 06:23 | 3482940 GetZeeGold
GetZeeGold's picture

 

 

Scarlett doesn't take silver. You'll need some gold.....and a couple more zeros.

Mon, 04/22/2013 - 17:51 | 3485594 Dead Canary
Dead Canary's picture

You misunderstand. She would pay me.

Sun, 04/21/2013 - 23:48 | 3482542 Thomas
Thomas's picture

Just extreme backwardation (which is an extreme abomination linguistically).

Mon, 04/22/2013 - 00:17 | 3482600 boogerbently
boogerbently's picture

The question is, can gold price rise dramatically before a global "distraction" is initiated to prevent everyone repatriating their gold.....which is no longer where they thought they left it ?

Mon, 04/22/2013 - 00:35 | 3482626 Cookie
Cookie's picture

Thailand, Prachuapkirikhan.

This morning at 9.30 I went to collect 20 ounces of gold that I bought last week. I wanted mint ingots this time so had to wait for delivery (no premium over non-mint). The tiny shop was packed, normally I see no other customers, and everybody was buying, not selling. The owner who I now know quite well tells me his ratio buyers to sellers is over 95%. I am 100% certain these scenes are being replicated across Thailand and the rest of Asia.

Mon, 04/22/2013 - 09:04 | 3483284 turnoffthewater
turnoffthewater's picture

Ditto for Jatim Indonesia. Travelled to the mall, where there are about 20 jewelry stores selling Au chains, bracelets, etc., over 15:1 ratio buyers to every seller. Most were sold out of Au bars. Only 2 shops had bars to sell. The only bars for sale were a couple 1 kg bars and 5-7 100 gram bars. Sorry no coins for saie on this side of the pond.

Mon, 04/22/2013 - 06:37 | 3482950 Capitalist Exploits
Capitalist Exploits's picture

ridiculous comments always get headlines.....this guy (Wylie or whatever) impresses me as a moron

Mon, 04/22/2013 - 05:26 | 3482903 johngaltfla
johngaltfla's picture

It doesn't matter how they vote on it. The problem they are going to endue is the war on alternative currencies (Bitcoin) and precious metals declared to save the Central Banksters fiat funny money. Of course the Swiss can repatriate all the paper gold their planes can load up....

 

The Central Banks New Currency War on Gold and Freedom

Sun, 04/21/2013 - 22:14 | 3482299 DoChenRollingBearing
DoChenRollingBearing's picture

AllThatGlitters

Yes.  Evgeryone should own some gold.  Up to 10% or more of your wealth.

***

Switzerland!  Do the right thing!  Vote to keep your gold!

 

Sun, 04/21/2013 - 22:21 | 3482321 fonzannoon
fonzannoon's picture

dochen what do u do with the other 90%?

Sun, 04/21/2013 - 22:38 | 3482373 DoChenRollingBearing
DoChenRollingBearing's picture

Evening, fonz.

My other 88% or so is widely diversified.  Cash, stocks, some bonds, our company in Peru and our condo make up the bulk.

I hold 12% in gold and other PMs (mostly gold) because our kid will not...

Sun, 04/21/2013 - 22:41 | 3482377 DoChenRollingBearing
DoChenRollingBearing's picture

RAN SQUAWK has a news item about South Korea's bank buying more gold!  They my homies (honorary anyway, as they make most of the bearings we but for Peru)!  

Back up the truck, Korea!

Sun, 04/21/2013 - 22:39 | 3482380 macholatte
macholatte's picture

 

dochen what do u do with the other 90%?

 

Like every smart man, he gives it to his wife and goes back to work.

 

A successful man is one who makes more money than his wife can spend. A successful woman is one who can find such a man.

Lana Turner

 

 

 


Sun, 04/21/2013 - 22:42 | 3482387 DoChenRollingBearing
DoChenRollingBearing's picture

Disclaimer:

My wife disapproves of buying gold.  Bummer!

Sun, 04/21/2013 - 22:55 | 3482423 ebworthen
ebworthen's picture

How about jewelry for her?

Not great as far as price per ounce but Gold:

http://www.apmex.com/Product/55828/1_gram_Fortuna_Oval_Shaped_Pamp_Suiss...

Sun, 04/21/2013 - 23:53 | 3482557 DoChenRollingBearing
DoChenRollingBearing's picture

She doesn't want jewelry either.   ~~~

Mon, 04/22/2013 - 00:29 | 3482616 ebworthen
ebworthen's picture

Dang, sorry to hear that :-(

Make the Wife happy; better than Gold if you are happy, and cheaper than a divorce.

Mon, 04/22/2013 - 00:01 | 3482572 Overfed
Overfed's picture

Mine approves of my silver buying, and even contributes an ounce here and there.

As far as gold jewelry goes, I have a contact that I can buy it from at spot. I've given my wife a nice collection at about 30% of retail cost. Retail markup on jewelry is insane.

Mon, 04/22/2013 - 03:18 | 3482823 CHX
CHX's picture

No probelm, buy some silver instead! My wife LOVES silver :-)

Sun, 04/21/2013 - 23:20 | 3482482 Dr. Engali
Dr. Engali's picture

Fonz did you end up buying your silver Eagles yesterday ?

Sun, 04/21/2013 - 23:22 | 3482488 Clever Name
Clever Name's picture

Thats easy! BTC of course!

/sarc

Mon, 04/22/2013 - 06:58 | 3482967 GetZeeGold
GetZeeGold's picture

 

 

System error : division by zero. Do you wish to continue?

Sun, 04/21/2013 - 21:52 | 3482211 FieldingMellish
FieldingMellish's picture

Buy PMs, take your money out of the bank, hold your stocks in certificate form and then sit back and watch the show!

Sun, 04/21/2013 - 22:09 | 3482275 sampo
Sun, 04/21/2013 - 21:42 | 3482167 Peter Pan
Peter Pan's picture

As well as those that are cheesed off about their loss of gold.

Sun, 04/21/2013 - 21:46 | 3482180 akak
akak's picture

 

Blessed are the cheesemakers!

For they know the whey.

Sun, 04/21/2013 - 21:47 | 3482184 FieldingMellish
FieldingMellish's picture

Speak it, Brother, speak it!

Sun, 04/21/2013 - 21:46 | 3482186 akak
akak's picture

Blessed are the cheesemakers, for they maintain the health of the culture.

Sun, 04/21/2013 - 21:51 | 3482207 toys for tits
toys for tits's picture

 

Blessed are the cheese cutters.

 

 

Damn strikethrough doesn't work for me.

Sun, 04/21/2013 - 21:51 | 3482219 WmMcK
WmMcK's picture

They will lead the churn-around.

Sun, 04/21/2013 - 21:54 | 3482222 Harbanger
Harbanger's picture

Blessed are the Swiss cheesemakers, for they make holey cheese.

Sun, 04/21/2013 - 22:59 | 3482432 Shell Game
Shell Game's picture

And they know their metal, must have read The Casein For Gold.

Sun, 04/21/2013 - 23:18 | 3482476 Dr. Engali
Dr. Engali's picture

+ 3 (to cover for the junks) Who in the hell junks that?

Mon, 04/22/2013 - 01:15 | 3482668 Shell Game
Shell Game's picture

I was wondering the same thing, Doc.  Some serious corn-cobbed Cornholios, of that there is no doubt...

Mon, 04/22/2013 - 04:47 | 3482882 StychoKiller
StychoKiller's picture

"He said some Greek is going to inherit the Earth!"

Sun, 04/21/2013 - 21:46 | 3482185 toys for tits
toys for tits's picture

Some of the monetary policy implications are that if this passes then the Swiss will be back on the gold standard since they have to keep 20% in gold of every franc created.

This is a violation of IMF policy, so how this plays out is going to be interesting.

Do NOT follow this link or you will be banned from the site!