by Chiara Albanese, Market Watch:
Gold and currencies markets are starting to show their first nerves ahead of a referendum in Switzerland that could potentially force the country’s central bank to buy thousands of metric tons of gold and never sell it, complicating its so far credible policies to hold down the franc.
A ‘yes’ result in the so-called “Save Our Swiss Gold” vote Nov. 30 wouldn’t be the end of the matter, with the controversial measure facing several hurdles before it could ever be passed into law.
Still, a ruling in favor of the motion would force the Swiss National Bank to hold some 20% of its about $547 billion assets in the precious metal, returning to the weighting it last held in gold in 2008. This harks back to a time when Switzerland held a dominant role in global gold markets.
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