On November 30, the SNB will go to the polls to vote on a gold referendum, one proposal concerns whether the SNB should hold 20% of its reserves in gold, a recent poll suggests the majority will vote “yes”
If this referendum is approved it will require the Swiss National Bank to:
1. Hold 20% of its reserves in gold.
2. Repatriate any gold it holds outside its borders.
3. Cease selling any gold.
In recent years, the SNB has been actively selling the precious metal to the extent that gold as a percentage of Switzerland’s foreign reserves has fallen from 29% in 2006 to 1040 tonnes or 7.8% in September 2014. (Source: SNB Monthly Bulletin and World Gold Council)
Read more: Stephen Pope, (TradingFloor.com)