Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Soybean Price Hits 9 Year Low Due to Trade War - 24th Jun 18
Small Cap Stocks, Technology and Pharma To Drive A Renewed Market Rally - 24th Jun 18
Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan... - 23rd Jun 18
Cheap Gold Stocks Bottom Basing - 23rd Jun 18
A Trade War Won’t Be Good for the US Dollar - 23rd Jun 18
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Gold Price Would Soar on Possible Swiss Yes Vote

Commodities / Gold and Silver 2014 Nov 27, 2014 - 12:52 PM GMT

By: GoldCore

Commodities

There are just 3 days left until the“Save Our Swiss Gold” referendum this Sunday. On November 30, voters in Switzerland will head to the polls to decide whether the Swiss National Bank (SNB) should back the Swiss franc with gold by increasing its gold holdings to 20% - up from current levels of 7%.

The conservative Swiss People's party proposed the initiative, called "Save Our Swiss Gold", with the intention of boosting the security and financial and monetary independence of Switzerland in these  times of financial uncertainty. They believe that a 20% gold holding will protect the Swiss people from currency debasement, currency devaluation and an international monetary crisis.


In the case of a "yes" vote, gold prices are likely to surge. Analysts do not believe a yes vote is possible. However, analysts have got the mood of the people wrong in many referendums both in Switzerland and throughout Europe in recent years. 

We believe that the vote will be very close - much closer than many analysts suggest. After a massive, very well funded and highly coordinated campaign by the banking and political establishment in Switzerland, the polls show that the no side is in the lead. 

It is worth remembering some of the recent referendums in Switzerland showed the people would vote with the government and establishment political parties in the polls. Subsequently, they did not.  

It is worth remembering some of the recent referendums in Europe showed the people would vote with the government and establishment political parties in the polls. Subsequently, they did not.  

In Ireland, after similar coordinated campaigns by political elites, many official polls showed, the people would vote for the EU's Lisbon and Nice treaties. The people voted for neither.
There is a lot of discontent and anger against financiers and a sense that politicians are mere tools of bankers and financial elites rather than representatives of the people, doing the will of the people.

The Swiss people are better off than most people in the world and Switzerland remains one of the wealthiest nations in the world. 

However, many are struggling in Switzerland today. The working and middle classes are seeing significant inflation in the cost of life's necessities in the form of food and accommodation. To buy or to rent an apartment or house is becoming increasingly unaffordable.

Much of the campaign conducted by the SNB and the political parties in Switzerland was alarmist and one sided. It failed to address the concerns about the possible continuing debasement of the Swiss franc and a resultant fall in Swiss people’s purchasing power and standard of living.

Today we have published a very good, balanced look at the key issues which were largely ignored and not addressed by the no campaign.

The author Eric Schreiber is the former head of commodities UBP and former head of precious metals at Credit Suisse in Zurich. He believes that this crucial angle has been largely missing from the Swiss gold referendum debate as have important matters regarding the role of central banks, the importance of transparency, accountability and indeed democracy.

Read Eric’s interesting and balanced article here

Central bankers reached a new low at the weekend when Swiss National Bank President Thomas Jordan warned in a very alarmist manner of "disastrous consequences" from a pulpit in a church on a historic hill in the town of Uster, Switzerland.

“The initiative is dangerous because it would weaken the SNB,” he said yesterday regarding proposals to increase the Swiss gold reserves, at a memorial service in a church which Bloomberg dubbed the 'sermon on the hill.'

The separation of church and state was one of the great achievement of recent years. It looks like we need to see a proper separation of central banking from the state. States and sovereign nations should be in control of central banks, rather than the other way around.

Central bankers, with their dogmatic uber-Keynesian money printing creed, would like to see themselves and their policies as infallible. Despite, such policies having an abysmal track record throughout history and indeed in recent years.

Central bankers seem to have forgotten that their primary role is to protect the purchasing power of their respective currencies and to act as the lender of last resort. 

Their role is not to bail out irresponsible, insolvent banks and not to boost asset prices on behalf of corporations and the wealthy - thereby, debasing sovereign currencies.

My sense is that the Swiss people may give the politicians another bloody nose this Sunday. This would shock markets as market participants are not expecting this. It would force the Swiss central bank to triple reserves to over 1,500 metric tonnes, leading to the price of gold soaring.

It would lead to an even greater increase in central bank demand for gold. It would put the FED, ECB, BOJ, and BOE on notice that their continuing currency debasement is not sustainable.  It would also likely break the EURCHF peg increasing purchasing power for ordinary people in Switzerland. 

A yes vote would likely result in a significant shift in both awareness and consciousness about our modern fiat monetary system and about what constitutes  money today. The frequently cited, but never seen except in India and China, ‘gold rush’ of recent years may materialise in the western world as gold goes from the fringes or a small minority of risk averse investors and savers to the mainstream.

It would result in a new found awareness that gold is not the speculative, volatile commodity but is a rare, finite form of money and a store of value in uncertain times. 

Get Breaking News and Updates On Gold Markets Here

MARKET UPDATE
Today’s AM fix was USD 1,196.50, EUR 959.20 and GBP 758.96 per ounce.
Yesterday’s AM fix was USD 1,195.75, EUR 960.67 and GBP 760.22 per ounce.

Spot gold closed slightly lower yesterday at $1,197.78/oz, and spot silver fell to $16.51/oz.

Gold in USD - 10 Years (Thomson Reuters)

Gold prices are in lockdown just below $1,200/oz as the market awaits Sunday’s Swiss referendum on central bank gold reserves (see above). 

Gold edged down on Thursday, pushed by dollar gains and the lull of the Thanksgiving holiday in the U.S. 

Traders remain cautious ahead of the Swiss gold referendum this weekend. Gold coin and bar buyers in western markets have been buying this week in anticipation of a possible yes vote.

Silver was down 0.6%  at $16.37 an ounce, platinum was down 0.3% at $1,219.30 an ounce and palladium was down 0.6% at $795.47 an ounce.

A surprise dip in Spanish consumer prices has increased the probability that the ECB will embark on a more aggressive easing of monetary policy. However, in Germany the jobless rate remained low at 6.6%, matching the revised number for the previous month.  

Euro zone countries' economic fortunes could permanently diverge if they fail to undertake structural reforms, posing a risk to the cohesion of the currency bloc, the president of the ECB said today. "Lack of structural reforms raises the spectre of permanent economic divergence between members," Mario Draghi said.

Traders are now awaiting Sunday's Swiss vote on how it manages central bank gold reserves for guidance. If a 'yes' vote is passed, the Swiss central bank would have to buy about 1,500 tonnes of gold over the next five years.

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules