Switzerland is set to hold a referendum on 30 November whether the Swiss National Bank (SNB) should double its gold reserves to 20% and if the bank should stop selling gold.
The referendum was initiated by the Swiss People’s Party (SVP) under the banner “Save our Swiss Gold”. Both the Swiss Government and members of the Swiss Parliament have criticised the initiative arguing that it could affect the ability of the SNB to intervene.
Due to the scale of the purchases, set at 1,500tonnes, the acquisitions could also affect gold prices. Added to that is the fact that the SNB is currently struggling to maintain the 1.20 cap to the euro which it set in 2011 in order to boost the competitiveness of its exports. With the value of the euro set to decline further, large scale gold purchases could reinforce the appreciation of the Swiss franc.