Swiss Party Puts Gold Repatriation, Protection on Ballot

May 9th, 2013 by

swiss-gold

The Swiss People’s Party, a nationalist political party in Switzerland, has succeeded in getting the required number of signatures to put a gold referendum on the national ballot.  The “Save Our Swiss Gold” initiative, if passed by voters, would require the Swiss central bank to double its gold reserves from 10% to 20% and repatriate all gold reserves held abroad. The measure would also forbid the sale of any gold reserves.

This would make the gold reserves worthless to the bank, according to Thomas Jordan, chairman of the governing board of the Swiss National Bank. He explained that if the gold was unsellable, it could not be counted as an asset at all, while still tying up 20% of the central bank’s reserves. He warned that the bank would have to issue treasury bills and pay interest on them in order to manage the money supply, and would lead to printing more money.

Jordan also revealed for the first time where Switzerland’s gold reserves are held – another demand by the Swiss People’s Party. Switzerland has a total of 1,040 tonnes of gold, with 70% in Switzerland, 20% in the Bank of England, and 10% in the Bank of Canada. Jordan said that keeping a portion of the nation’s gold reserves abroad was necessary for “adequate regional diversification and good market access.” Central banks will keep reserves in foreign central banks for use as collateral when buying foreign currencies.

(Centralbanking.com was used as a resource for this article)

4 thoughts on “Swiss Party Puts Gold Repatriation, Protection on Ballot

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  2. steve

    What bollocks saying the gold if unsellable is worthless. Typical banker does not recognise a true asset . Why does he think central banks are buying and holding Gold like its going out of fashion. Thats the problem warped thinking by banksters , real money they cannot turn in to deravatives or use for crooked fractional banking.

    1. GainesvilleCoins

      I believe he means that if it cannot be used as collateral or to settle debts, it can’t be counted as an asset on the bank’s accounting books.

      I wrote an article earlier about a proposal for Italy to use its gold reserves as collateral for loans so it would pay a lower interest rate and could get back on its feet. It’s the debt service that is killing Italy, and why some in the EU are afraid Italy will leave the euro and default on the interest payments of the loans until their economy is back on track, then pay the loans off in lira.

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