Will Swiss Politics Cause Gold Price to Rally?

A political initiative in Switzerland is calling for the country to repatriate all its gold, and hold at least 20% of its assets in the precious metal. Will this cause prices to rally?

Barclays Wealth and Investment Management 25 November, 2014 | 4:34PM

Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Hans F. Olsen,Global Head of Investment Strategy at Barclays Wealth discusses the fate of the gold price.

Referendums are a way for democracies to put an issue directly to the electorate to decide. The issue might be a constitutional amendment; a vote on independence; the legalisation of marijuana; or the legality of bear baiting. In the rarified world of central banking, a Swiss referendum on November 30 mandating the country’s central bank to hold a large portion of its assets in gold captured my attention. In the post-Great Crisis age, central banks are the apex player in economic and financial matters. Consequently, an effort to materially limit a central bank’s degree of freedom is a noteworthy event.

The initiative, called Save our Swiss Gold, is the product of the Swiss People’s Party, a centre-right political party that seeks to create a stable currency for the country by requiring the central bank to repatriate the gold it holds outside Switzerland, prohibiting it from selling any of its gold, and finally, mandating it to hold at least 20% of its assets in the precious metal.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Barclays Wealth and Investment Management  Services include wealth and investment management, financial planning, and brokerage.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites