Switzerland will hold a referendum in the coming weeks to try and affirm the majority’s belief that the country should hold on to its remaining gold reserves.
Between 2001 and 2006, Switzerland disposed of much of its stores for reportedly low prices; an action which has been largely blamed for the countries significant loss of Swiss francs in the following years. And now, with much of Southern Europe threatening to abandon their own reserves, the Swiss parliament is eager to seek assurances from the Swiss National Bank that their country won’t follow in the same vein.
The referendum aims to persuade the relevant parties that at least 20 percent of the country’s gold assets should be kept in Switzerland for the good of its economic future.
This has been the wish of the conservative Swiss People’s party for some time, under the ‘Save our Swiss Gold’ initiative, but now that enough signatures have been signed, law dictates that an official referendum must be held. The magic 100,000 target was easily surpassed with 106,052 legitimate signatures collated in total.
It was Cyprus who compounded Swiss concerns last week when it agreed to sell gold worth €400 million from its reserves to try and take strides towards stabilising its finances. Similarly, Italy and Portugal have also hinted that if they needed to, they could delve into their vast gold plunder as a final get-out clause. But it seems as though Switzerland will remain one country who stays firmly sat on its nest egg, at least for the foreseeable future.
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