by George Dorgan
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The pages on the Swiss gold referendum contain:
Analysis:
- Swiss Gold Referendum: Results and Analysis
- George Dorgan auf Finews: Die vier Fronten bei der Goldinitiative
- “SNB Concerned”: Does a Yes to the Swiss Gold Referendum Imply an End of the CHF Cap?
- Official Eurostat Trade Balance Massively Distorted by UK Sales Of 1464 Tonnes of Gold To Switzerland
- Why was the gold price so low in 1999/2000?
- New Swiss Gold Initiative Getting Attention When Parallel Currencies Might Challenge Swiss Franc
- Swiss customs: first time detailed trade statistics for gold available; Asia main export market
Opinion:
- Peter Schiff’s Message to Switzerland: Preserve Your Wealth, Gold is Better than Pegging to the Euro
- Ron Paul: Do the Swiss vote to get their gold back?
- Gold Referendum, Parliamentary Speech Lukas Reimann
- Taxpayers Association Europe: Die SNB, der Franken, Rotkäppchen und der böse Wolf
- Swiss Gold Referendum and SNB’s Opinion: An Exchange of Arguments
- Why did SNB sell gold at cheapest prices? Stupidity?
The Swiss Gold Referendum: An Analysis by George Dorgan
In a referendum the Swiss have to decide about:1) Ecopop, a ecological-political movement that wants limit immigration to 0.2% of the population,
2) Abolish tax advantages for rich foreigners and
3) the gold initiative.
All three initiatives got rejected, the gold initiative by 78%. What does it mean for the Swiss Franc, the SNB and gold?
George Dorgan summarizes the outcome. He explains what it means for gold, CHF and the SNB. He argues that the next economic cycle will be driven by stronger wage growth in Germany and in the United States. He argues that in some years time the major enemy of the SNB will become inflation that is caused by rising Swiss asset prices and rents and from inflation spill-overs from Germany and the U.S.
The SNB will finally react according to the proposal raised by Prof. Janssen, a major supporter of the gold initiative: with a managed currency appreciation
New Swiss Gold Initiative Getting Attention When Parallel Currencies Might Challenge Swiss Franc
In Switzerland the ordinary people have started several initiatives to protect their savings against the establishment. After the first gold referendum failed in November 2014, a new gold initiative is trying to introduce a gold-backed Swiss currency, as parallel currency or investment vehicle.With the end of the EUR/CHF peg and the apparent risks caused by the SNB, the importance of the Gold Franc initiative has increased. Different groups want to introduce parallel currencies in addition to the Swiss franc. CHF is based on fractional reserve banking and, according to the critics, its quantity is increasing too rapidly. A sound money initiative (German “Vollgeld”) wants to abolish fractional reserve banking, while the new gold franc initiative desires a gold-backed currency. Already now, the so-called WIR money (“Our Money”) is a local currency created during the Great Depression. “WIR money” allows borrowing and lending, in particular for real estate. It is fully backed by commodities, like real estate. By law, parallel currencies, like WIR money, are not legal tenders. Due to a lack of convertibility into foreign currency, WIR money trades at a slight discount to the Swiss franc. This, however, might change when the SNB gets further into negative equity.
In the article we will compare the two gold initiatives.
Swiss Gold Referendum: Proponents Now Actively Fight SNB and Euro Floor
Latest gold referendum poll November 19: The latest poll shows 27% surely in favor of the gold initiative, 36% surely against the initiative. The most important development is the decision of the gold initiative to actively fight against the SNB’s minimum euro rate.
Peter Schiff’s Message to Switzerland: Preserve Your Wealth, Gold is Better than Pegging to the Euro
To find further explanations as to why the gold price was weak in the late 1990s we analyze sector balances. Effectively private spending and private debt went in two different directions: a heavy increase in private spending and debt in the US against less growth in private spending and less debt in the rest of world. This combination fostered GDP growth in the US and weakened it in other countries. Real interest rates were positive. Markets thought that the debt-financed growth could continue for years; they created the dot com bubble on top of it that strengthened technology stocks and the related currency, the dollar. This rare situation led to excessively weak oil and gold prices.Permanent link to this article: https://snbchf.com/2014/11/gold-price-low-2000/
