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2014: Swiss Gold Referendum and Gold in Switzerland



The pages on the Swiss gold referendum contain:






The Swiss Gold Referendum: An Analysis by George Dorgan

Results Gold ReferendumIn 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.

470 bln Euro instead goldSwiss 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.


Festung Solides GoldSwiss Gold Referendum Latest news

by George Dorgan



Peter Schiff’s Message to Switzerland: Preserve Your Wealth, Gold is Better than Pegging to the Euro




Why was the gold price so low in 1999/2000?

MMT US Sector Balances 2
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/




George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
See more for 6a.) Swiss Gold Referendum

Permanent link to this article: https://snbchf.com/swissgold/referendum/

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