Swiss Gold Initiative: Proponents Fight SNB And Euro Floor
George Dorgan | Nov 20, 2014 05:57AM ET
The latest poll shows:
- 27% surely in favor of the gold initiative
- 36% surely against the initiative
- 11% rather in favor of it
- 11% against it
- 15% no answer or undecided
More details on our regular poll update .
The most important development is the decision of the gold initiative to actively fight against the SNB’s minimum euro rate.
What are the reasons?
The proponents have realized that they introduce a very severe constraint: Namely that the SNB must hold at least 20% gold. This implies it needs buy 1580 tons of gold with printed money, if it maintains the euro floor.
If the central bank manages to sell the euros and dollars one remote day in the future [what some pro-SNB "financial experts" consider possible], then masses of gold would remain on the SNB balance sheet and cannot be sold.
Already since a couple of days, the proponents have realized that that many voters have an issue with that; it became visible in the latest poll above. Therefore the proponents changed strategy: They actively fight against the SNB and the euro minimum rate. The idea is simple: The SNB should sell euros and other fiat currencies already in the coming five years and buy gold with the proceeds. This will solve the potential issue with the “unsaleable gold”.
Twitter is the communication channel to target those often intelligent people that have an issue with “unsaleable gold”. This changed strategy becomes visible in their ad-financed Twitter campaign, here the link to their Twitter profile .
The promoted tweet: “Gold unsaleable? The euros are unsaleable!”. This advert appears on the top of the timeline when most Swiss log into Twitter.
The next claim is for the social responsibility: the SNB wants to help the rich and fight the poor. “When central banks print money then the rich get richer and the poor poorer!” It shows the Piketty split, also visible in the voting intentions by income group in the poll.
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