by Greg Klein | November 30, 2014
Gold bugs lost decisively in a November 30 referendum as the Swiss turned yellow on metal. Some 77% of voters rejected a proposition that would require the country’s central bank to convert at least 20% of its assets to gold, the Telegraph reported. The proposal would also have required the bank to repatriate its gold, none of which it could ever sell.
“The people have decided against the initiative,” said a statement by the Save Our Swiss Gold campaign. “This means the Swiss franc is now strongly tied to the euro and ECB policy. It is now up to the [Swiss National Bank] to prove the people right and manage its way.”
The group maintains that the defeat will cause more money-printing and steeper inflation, while the SNB will hold at least 400 billion francs in EU bonds “that could become worthless.” A franc is worth about $1.18.
Voters also rejected two other referenda—a proposal to remove tax benefits for rich foreign residents and another to limit immigration. The latter initiative came from an environmental group.