EDITOR: | November 30th, 2014 | 4 Comments

Save our Swiss Gold referendum moves gold stocks north

| November 30, 2014 | 4 Comments
image_pdfimage_print

Sunday AM, sipping my coffee in the King Edward lounge, am wondering if it’s just me or have the Christmas market brigade not moved the marketing earlier this year when Christopher Ecclestone writes me. He is onsite in London at the Mines & Money Show that kicks off early tomorrow AM and am revelling in the fact that InvestorIntel has representation, along with Chris Berry who I understands arrives tomorrow at arguably the largest and best resource show of the year in the UK.

I write to Christopher: “can you send me a quote on the Swiss referendum today…” He answers promptly with: “This eagerly awaited event for goldbugs is being feted as potentially all their Christmases coming at once. They have built it up so much in their mythology that if it does not go their way then the cry of despair will be like the blast of Krakatoa echoing around the planet.”

What’s the bottom-line? If the Swiss vote yes on the gold referendum that is occurring as we speak, it would mean that the Swiss National Bank would have to buy at least 1,500 metric tons plus, over a five-year period, to meet their commitment towards having 20% of their assets in gold. The idea is of course, designed to place limits on how much money the central bank may print. What is noteworthy of course, is that enough people are interested in this “Save Our Swiss Gold” initiative that the global market seems to be intriguingly bracing itself for the fall out. After all, if this referendum passes – the central bank would have to fork over $72.5 billion Swiss francs to nail down what would is approximately two-thirds of the world’s total annual production.

So 5 million voters from the 8.02 million Swiss population are holding the fate of what would be a wild bull run in the resource sector in their hands today or are they?

In looking at Kitco’s 24hr chart, and in comparison with the 1-month price charts: it is clear that those with money on the barrel on the referendum vote, deem it to be “pass”. This said, the outcome should not trivialized as there were enough people concerned about the value of their Swiss franc that this referendum occurred.

Gold-24HrGold-1MonthWas reading a story on Channel NewsAsia that while economists do not agree on many things, “the Gold Standard is definitely one of them.” They went on to quote the Bank of Singapore’s chief economist, Richard Jerram, who was quoted as saying: “There was a survey from the University of Chicago. They surveyed 40 economists in the US, and 100% of them said the return to the gold standard is a bad idea. The only thing they disagreed about was that some of them thought it was just a bad idea, some of them thought it was a terrible idea.” This said, economists are famous for being wrong — most of the time….

Whether the Swiss place their money on the gold standard or not, InvestorIntel members with gold are proceeding well in languishing resource markets, and highlights include the following:

  • Carlisle Goldfields Ltd. $CGJCF up +35% & $CGJ.V +14.29% in November
  • Levon Resources Ltd. $OTCQX +20.39% & $LVN +16.67% in November
  • El Nino Ventures Inc. $ELN.V +14.29% last week
  • Alkane Resources Ltd. $ALK up +6.82% & $ANLKY +3.36% last week: $ALK up +4.44% & $ANLKY +1.11% for November
  • Chesapeake Gold Corp. $CKG.V up +3.45% last week

Tracy Weslosky

Editor:

Tracy Weslosky is the Founder and CEO of InvestorIntel Corp., a company that publishes InvestorIntel.com. A leading e-news source for investors, entrepreneurs and industry leaders ... <Read more about Tracy Weslosky>


Copyright © 2016 InvestorIntel Corp. All rights reserved. More & Disclaimer »


Comments

  • Tracy Weslosky

    I asked Chris Berry for a quote this morning (thank you!) and just received here a few moments ago, Chris writes: “It looks as though the referendum has failed as I write this. I was in Switzerland two weeks ago and the sentiment was split down the middle 50/50. The initial results look as though closer to 75% of voters voted against the referendum, so clearly the Swiss don’t want a gold-backed currency, but the real question is who does? Clearly the Russians or Chinese feel differently about gold’s role as a currency despite the overwhelmingly negative sentiment towards gold in the financial markets.”

    November 30, 2014 - 9:58 AM

  • Nevada George

    I was hoping for the Swiss gold standard.
    However, I did not have any unrealistic expectations
    as Switzerland is a direct democracy and it is leaning
    more and more to the left due to demographic changes.
    I thought the vote would be closer — not 78% against
    the referendum.
    The results will allow SNB, ECB, BIS, — all the central banking
    system to keep playing three-card-monty.
    Maybe? — that is the only way to artificially keep
    the system afloat.
    I have been going to Geneva twice a year for a long time and
    every trip I see more changes.
    The whole private wealth industry in Switzerland is rapidly
    changing… and with that its’ world wide image of economic stability.
    Look to Asia Banking to be the Replacement.

    November 30, 2014 - 11:38 AM

  • Inspiring quotes about moving on and quotes to live by | Meditation Techniques

    […] Cavs post game quotes: David Blatt commends Tristan Thompson, Kevin Love discussions … The Cleveland Cavaliers went about .500 on Saturday night after a 109-97 triumph over the Indiana Pacers. It ended up being a home game, the Pacers were playing in the 2nd night of a back to back, and it's #39;s been devastated by harm & a team that. This was a match … Read more on Panic the Sword Save our Swiss Gold referendum goes gold stocks north I write to Christopher: “can you send me a quotation in the Swiss referendum now…” He replies quickly with: “This eagerly awaited occasion for goldbugs is being feted as possibly all their Christmases coming at the same time. They’ve built it up so substantially in … Read more on InvestorIntel […]

    November 30, 2014 - 12:49 PM

  • merlion

    “The whole private wealth industry in Switzerland is rapidly
    changing… and with that its’ world wide image of economic stability.
    Look to Asia Banking to be the Replacement.”

    Singapore saw the opportunity about 5 years ago.

    Edit: they implemented strategic decisions 5 years ago … saw the opportunity 10 years ago when China was consulting Lee Kuan Yew.

    November 30, 2014 - 4:35 PM

Leave a Reply

Your email address will not be published. Required fields are marked *