Swiss National Bank Head Speaks Out Against Gold Reserve Act

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The head of Switzerland’s central bank warned his fellow citizens that maintaining stable prices would be harder to achieve if the country votes to require the bank to keep a minimum amount of gold in its vaults, according to the Wall Street Journal.

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The adoption of the so-called “Save Our Swiss Gold” initiative would be a “fatal error of judgment,” Thomas Jordan, president of the Swiss National Bank, told Swiss newspaper 20 Minuten in an interview published Wednesday. On Nov. 30, the Swiss are scheduled to vote in a referendum on the initiative to make the Swiss National Bank to hold one fifth of its assets in gold, a level it would need to meet within 5 years. The SNB currently has assets of around $550 billion. It was a rare public statement from the head of the bank.

The requirement, the campaign for which is led by members of the right-wing Swiss People’s Party, would also prohibit the bank from selling any of its gold in the future and repatriate gold held overseas. A recent poll showed the vote was too close to call with 44% of respondents in favor of the initiative, 39% against and 17% undecided. A majority of voters and a majority of Switzerland’s 26 cantons, akin to states, need to approve the initiative for it to pass.

Japanese gold bullion saw a 2.1% increase on Tuesday, November 11, reaching JPY 4,295 ($39.45) per gram and making it the biggest upwards shift of the day. The price of Indian gold bullion fell 1.8% to INR 25,740 ($419.87) per 10 grams. The price of Chinese gold bullion declined 1.3% to CNY 227.80 ($37.09) per gram, after two days of improvement. Weakening prices followed two days of improvement as the price of US gold bullion dropped 0.7% to $1,152 per ounce.

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Indian silver closed 2.1% lower at INR 35,542 ($579.76) per kilogram. After hitting a 30-day low of JPY 572.00 ($5.25) per 10 grams on Friday, November 7, the price of Japanese silver rose 1.4% yesterday. Chinese silver finished the day down 1.0% to CNY 3,410 ($555.22) per kilogram. The price of US silver changed direction with a 0.4% drop. After two days of improving prices, the metal finished at $15.61 per ounce.

Japanese platinum bar finished the day up 1.2% to JPY 4,470 ($41.06) per gram. Chinese platinum bar ended the day at CNY 253.00 ($41.19) per gram, after the 1.2% drop on Tuesday. US platinum bar saw its price rise 0.3% to $1,193 per ounce.

At CNY 168.00 ($27.35) per gram, Chinese palladium bar fell 1.2% yesterday. The price of Japanese palladium bar held steady at JPY 2,806 ($25.77) per gram. US palladium bar stayed flat at around $747.00 per ounce.

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