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Switzerland Gold Referendum A Healthy Conversation – Ron Paul

By Neils Christensen of Kitco News
Monday October 27, 2014 3:45 PM

(Kitco News) - Although it is unlikely Switzerland’s gold referendum will pass, one U.S. politician said the country is embarking on a “healthy conversation” regarding the role of its national bank.

Ron Paul, former congressman thinks Switzerland's gold referendum is a "healthy conversation".

Former U.S. Rep. Ron Paul, who is a strong proponent of gold-backed currencies, said in an exclusive interview with Kitco News the fact a referendum on gold reserves was triggered in Switzerland demonstrates that people around the globe are starting to question the reliability of fiat currencies.

On Nov. 30 Swiss voters will vote on three initiatives as part of the gold referendum: whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its precious metals and that all its gold should be held within the country.

“People are starting to talk about gold more and they should,” he said. “(The referendum) is one more step in the direction of proving that paper money, fiat money, money created by politician out of thin air to subsidize big government and monetize debt is going to end.”

Although recent polls showed some popularity for the “Save our Gold” initiative, which was first launched in 2013 by the Swiss People’s Party, Paul said there is a concerted effort by the Swiss government to oppose the initiative. He added that he is expecting as the Nov. 30 deadline looms closer to see stronger fear tactics from the Swiss government and the Swiss National Bank to convince people to vote against the initiative.

“When our crisis hit there was panic and people were scared to death. Even conservatives who didn’t believe in bailing out the banks were frightened into it,” he said. “But if you had a clean vote and just simply ask the question: ‘should Switzerland hold its own gold … should the central bank hold a certain amount of gold in reserves.’ I think you would get an overwhelming ‘yes.’”

However, he added that no matter what happens with the vote “it is the discussion that is the most important.”

A lot of the attention of the Swiss gold referendum has been focused on the need for the national bank to buy about 1,500 metric tons of gold to boost its gold reserves to 20% of its total foreign reserves, if it passes. Paul said just as important, the central bank will have to hold all its gold within the country. Currently, the Swiss National Bank holds 70% of its gold and 20% is held with the Bank of England and 10% is held with the Bank of Canada.

“That is a natural and normal healthy instinct and I think other countries ought to do it,” he said. “It’s sort of like holding gold for personal reasons… If I am holding gold for emergency reasons, I want to know where it is and I want access to it.”

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By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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