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Popular Movement in Switzerland Looks to Repatriate Gold and Increase Reserves

swiss gold repatriationThere is a peoples’ movement in Switzerland to repatriate their gold and increase the percentage of gold reserves. This story has received very little attention in the media, even within the precious metals community. It could have significant ramifications for the gold market, increasing central bank demand and putting upward pressure on the gold price.

This November 30th, a popular Swiss Gold Referendum is going to a vote. Nearly one-third of the Swiss Franc used to be guaranteed by gold reserves, now 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.

Radio host Charles Goyette has spoken with Ron Paul about central banks at great length on his radio show. In the video below, he gives his input on the Swiss Gold Referendum.

The “Save our Swiss gold” referendum contains the following key elements:

  • The SNB should stop selling its gold.
  • The gold has to be stored in Switzerland.
  • Gold should represent at least 20% of the SNB assets

if the referendum passes the Swiss National Bank would have to buy about 1,500 tons of gold over the next three years. This equates to half of the world’s annual production and they would have to compete with China to secure supplies. COMEX manipulators can keep the paper prices low for so long, but eventually the overwhelming demand for physical is going to blow up that fraudulent exchange.

Repatriation would likely mean that the SNB can no longer lease gold into the market via the NY FED, the BOE in London and their private sector partners JPM and HSBC. Leasing (or even selling) is the only reason to “store” gold abroad in the post cold war age. It’s also the only reason why the German Bundesbank needs 7 years to repatriate a few hundred tons form the NY FED.

The Swiss Parliament and the SNB are against the initiative since it would stop their ability to freely print money. Swiss monetary policy used to be the soundest in the world, but in recent years Switzerland has joined other countries in abandoning a policy of sound money. Switzerland had 2,600 tons of gold in 1999 which was a significant amount in relation to the size of the country. At that time it was decided to sell 50% of the holding. Most of this was sold at the low of the market just like in the UK.

But not only did Switzerland dispose of half of their gold over ten years ago, but a major part of their remaining gold has either been leased out or sold. And some of the gold , if it is still there, is stored in other countries. As most other central banks, the SNB refuses to carry out a proper and official audit of the Swiss gold. Until an audit is done there is no certainty that all of the gold is still there.

Most governments and central banks officially dislike gold because it reveals the decline in the value of paper money. Since 1913 when the Fed in the USA was founded, all major currencies, including the Swiss Franc, have lost between 97% and 99% of their value against gold.

Voltaire said already in 1729: “Paper money eventually returns to its intrinsic value – ZERO.”

Although Switzerland’s economy is in better shape than many, the country has sadly followed the same destructive monetary policies as other countries in later years. This Swiss referendum is a very important initiative to fully restore confidence in the Swiss Franc and in Switzerland as one of the safest nations in the world. It is therefore critical that the Swiss people and the rest of the world is made aware of this initiative. If successful, it could be the first step for Switzerland towards a new monetary system based on sound money. Germany might consider the same, if they could only get their gold back.

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By | 2017-03-23T14:06:19+00:00 October 7th, 2014|Gold & Silver Commentary|

About the Author:

Jason is the founder of He previously worked in data analytics for the world's largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.