At the end of November the Swiss National Bank may change its stance on gold stores.
With gold swinging at present, off a 2 1/2-week high of $1,193.95 hit on Monday, down on USD strength to $1,188.60 today, yet another decision may alter the commodity’s course.
Changing the face of the Swiss National Bank assets is the aim of the campaign called “Save our Swiss Gold.” The campaign’s goal is to strengthen the Swiss franc and retain independence by compelling the SNB to not only hold 20% of its assets in gold, up from 7% at present, but also to never sell and store the metal in Switzerland. The SNB is against the proposal but the public campaign has attracted enough signatures to force the debate.
In opposition moves, the SNB are containing the franc to a minimum exchange rate of SFr1.20 against the euro, bringing the Swiss franc to its highest level against the euro on Monday since September 2012.
The bank also believes that taking that much gold into storage will leave the SNB susceptible to the volatile gold market. And though gold had a recent resuscitation, holding a 2 and half week high, the price is back on its downward trend with dollar and equities markets still rallying against it.
The vote will take place on 30 November and if agreed the SNB will have 5 years to attain all the gold assets needed to comply. As of 2008 the amount of gold in SNB totaled 1145 tonnes, valued at 30.5 billion CHF.
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