The Swiss Gold Referendum, if passed, will mean that the Swiss National Bank must hold 20% of all assets as gold, Switzerland will repatriate the 30% of their gold held abroad by England and Canada and may no longer sell any gold they accumulate.

While support is down in recent polling, anything is possible on November 30th with such a large percentage of voters still undecided. Of course the Swiss central bank has come out against the referendum, as it would limit their power. They call it a “fatal error of judgement” and the media propaganda campaign to defeat the referendum has heated up in recent weeks. It appears to be working.

The implications of the vote are huge. With a “yes”, the SNB would have to purchase at least 1,500 tonnes of gold to meet the 20% threshold for 2019. That’s about half the world’s annual production. It would also put Switzerland back in the top three for most gold holdings worldwide.

infographic swiss gold referendum physical market

Of course, the implications for gold are bullish. If more countries follow suit, we could see a new rush to acquire gold reserves at multi-year lows and additional attempts to repatriate gold holdings from the Federal Reserve and Western banking centers. If Germany’s attempt is any indication, other countries probably shouldn’t hold their breath.