An initiative to have the SNB hold at least 20% of it’s assets in Gold has been rejected by the Federal council. Citing that doing so would restrict the SNB’s ability to safeguard price stability and monetary policy the government has knocked back the plan put forward after a referendum.
The “Save our Swiss gold” initiative came about after it was said that the SNB lost billions by selling at the low end of the market between 2001 and 2006 (maybe they took advice from Gordon Brown).
Gold has taken a dive to $1259 breaking last weeks low and is on the way to challenging the mid October low at $1251.
Gold 20 11 2013
I don’t know whether the move is directly attributed to the story but the decision has virtually given the green light to the SNB to continue selling gold and remove the necessity for them to buy it to meet the proposed asset allocation.
Full details of the ruling here.
