Swiss vote no to gold referendum. Voters rejected a referendum requiring the Swiss National Bank hold at least 20 percent of its 520-billion-franc ($540 billion) balance sheet in gold. Had it been approved, it would have led to purchases of at least 1,500 metric tons over five years. With lower oil prices reducing costs for consumers and the U.S. considering raising interest rates, demand is fading for hedges against inflation such as gold. Gold has lost 16 percent since peaking in March and investor holdings of exchange-traded products are near a five-year low. While prices probably won't be affected too much by the no vote of the initiative called Save Our Swiss Gold, approval would have improved sentiment and increased prices by as much as $50 an ounce, HSBC Holdings Plc estimated in November. Read the full article here: (VIEW LINK) @jeliseo
The reaction in NCM and RRL on the exchange today has been quite dramatic. It seems strange that given a no vote was expected that the reaction has been so dramatic. Hard to believe sentiment towards resources/metals in general could get any worse...
Not surprising - though must admit i wasn't expecting the sell off to be quite so violent this morning (especially silver which just got 'oiled') Could be a counting crows (long december) for precious metal bulls if this morning sets the tone!