Save our Swiss Gold referendum moves gold stocks north
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.”
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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.
Was 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 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>