The people of Switzerland have made an interesting push to ensure that their government maintains the integrity of the Swiss economy through a mandatory and significant investment in gold. The Swiss Gold Initiative calls for no future gold sales by the Swiss National Bank, that all Swiss gold reserves be stored in Switzerland and that the Swiss National Bank be required to keep at minimum 20% of its total assets in gold bullion.
Additionally, those supporting the Swiss Gold Initiative are concerned that Swiss gold being held overseas might never make it back to their home country. There is precedent for this concern, as both Germany and Austria have previously expressed concerns over the exact location and security of their foreign held gold. The Swiss fear that without the national ownership of significant amounts of gold and the security of that gold bullion in place, their economic policies might very well end up dictated by the EU. As a result, the Swiss frank would be tied to the weak Euro, permanently and against the will of the Swiss people.
Ron Paul, former presidential candidate and great friend to precious metals and fiscal responsibility, had this to say about the Swiss gold referendum:
“Just like the US and the EU, Switzerland at the federal level is ruled by a group of elites who are more concerned with their own status, well-being, and international reputation than with the good of the country. The gold referendum, if it is successful, will be a slap in the face to those elites. The Swiss people appreciate the work their forefathers put into building up large gold reserves, a respected currency, and a strong, independent banking system. They do not want to see centuries of struggle squandered by a central bank. The results of the November referendum may be a bellwether, indicating just how strong popular movements can be in establishing central bank accountability and returning gold to a monetary role.”
To their credit the people of Switzerland are taking a stand against their government in the name of sound monetary policy. By the end of November, we will see if the Swiss Gold Initiative proves to be successful, and if the message that it carries spreads to the rest of Europe and then to the world. That would be welcome news indeed for those of us who buy gold coins and bullion, with the belief that hard assets and real money are the keys to economic prosperity.
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