Swiss Have Voted No To Gold Initiative: SNB Will Not Compete With China, India and Russia.

  

  Swiss people have voted today with no to the Swiss Gold Initiative. BIS and SNB can report back to FED the good news. Jim Rickards will have so large new audience to educate for his books in the years to come now. China, India and Russia will be buying Gold without any competition from the West now. Monday Gold trading session will be interesting with record negative GOFO rates, India news and, as some are suggesting, even short covering in Gold on this news.

  The focus should be on the dollar and Oil, stock exchanges in Saudi Arabia and Dubai are falling very sharply today and Saudi Arabia is in a bear market now. All these games can be out of control and Shale Oil in U.S. economic miracle is at stake now.

 Peter Schiff has discussed the expected by him No Vote last Friday with interesting observation: "Now all Swiss people who voted yes, will be buying Gold to protect themselves."

  

ZeroHedge: Federal Reserve Confirms Biggest Foreign Gold Withdrawal In Over Ten Years.

The disconnect in the demand for Gold and its manipulated price continues ... Instead of breaking out above MA50 Gold was sold out heavily in the very thin holiday trade with Oil crashing down after OPEC decision. Next week will be crucial for the Gold and other commodities markets. US Dollar on the chart below will be the guide. Who will risk deflation now? Higher US Dollar and lower Oil prices mean exactly that. Say good buy to Oil Shale and all economic boom connected to it. Before yesterday the most crowded trade: Long US Dollar looked like reversing itself, next week will show the next step in this epic ongoing Oil and Currency Wars.  Actually for the FED the higher Gold price and lower US Dollar will be the best outcome now - it will show the "so much needed Inflation", save Shale Oil and allow to manage next cycle of the gradual rise in the stock market preventing the collapse. In this logic discussion about ECB ability to buy Gold doesn't look so crazy any more. Will FED join this game now? At some stage it will have to deliver all that Gold "safely stored in its vaults" and this repatriation virus is not going just to fade away. Normally markets are positioned for the majority of participants to lose, this outcome will be the most unexpected I guess. Read more."

ZeroHedge:

Swiss Gold Referendum Fails: 78% Vote Against "Protecting The Country's Wealth"

Whether as a result of an unprecedented scare campaign by the Swiss National Bank (most recently reinforced by Citigroup), or due to confidence that Swiss gold is as safe abroad as it is at home, or simply due to good old-fashioned "hanging chads", today's most awaited event has come and gone and the result - according to early projections by Swiss television SRF - is that the Swiss population overwhelmingly rejected a referendum to force the Swiss National Bank to hold some 20% of its reserves in gold in a landslide vote, with about 78% voting against what AP politely termed "protecting the country's wealth by investing in gold." ... 

...And then there is the question of what happens to the tension in the gold swap market: as noted last week, the 1 Month GOFO rate had tumbled to the most negative in over a decade. It was not clear if this collateral gold squeeze was the result of Swiss referendum overhang or due to other reasons. The market's reaction on Monday should answer those questions. Read more at ZeroHedge."

Claudio Grass: Will the Swiss Vote for Gold?

"Jeff Deist and Claudio Grass discuss this Sunday’s historic gold referendum vote from Claudio's insider’s perspective. This referendum would require the Swiss National Bank to stop selling gold reserves, to keep its gold in Switzerland, and to maintain 20% of its total assets in gold.

What might the growing gold repatriation movement mean for the ECB and the Fed? Is this vote a watershed moment for the credibility of central banks generally? Is hostility against Swiss neutrality, Swiss wealth, and Swiss identity the unspoken motivation behind EU and US attempts to control this country of only 8 million people? And why do financial elites hate the idea of a strong Swiss franc?"

Alan Greenspan: Gold Is The Premier Currency And The Dollar Can't Match It.

"We have "the new rock star for the gold bugs community." Interesting revelations from Alan Greenspan to say at least. Chinese must be listening. Swiss can join the party as well now. Read more."

Bloomberg: 1,500 Tons Of Gold On The Line In Swiss Vote To Buy Back Bullion.

Bloomberg.

  The story about Swiss Gold Referendum has made its way up to the Bloomberg. Now everything depends on the people of Switzerland, but at least we will have the opportunity for the proper discussion about the FIAT Currency systems and Gold. China is not only buying record amounts of gold now, but taking out the best long term mining assets all over the globe. Read more."

Swiss Gold Referendum on November 30 - All You Need To Know To Vote Yes!

Grant Williams: All You Need To Know About Swiss Gold Referendum.

Great presentation from Grant Williams on this groundbreaking event for the Switzerland and the Gold market! We are close to the very important catalyst point for the Gold market now.

Eric Sprott: Global Gold Demand Is Overwhelming Supply.

Charles Nenner: “Gold Close To Major Bottom”.

  I am putting Charles Nenner on the record here. Can he be right again this time? So far, after hitting $1,130 Gold was cooperating with his Call. Gold space is full of buzz again. Alan Greenspan is talking about Gold with FT, Le Pen in France is demanding Gold audit and its repatriation after Netherlands brought some of its Gold from NY and Swiss are going vote in their referendum this Sunday. Will it all translate into the Gold breakout above $1,225 level next week? Read more."

Infographic: Everything You Need to Know About the Swiss Gold Referendum.

Eric Sprott: Global Gold Demand Is Overwhelming Supply.

  Nobody believes that Gold can make a true reversal here. Sentiments are at total extreme. We have the capitulation in gold miners and, maybe, this is the sign of the end of this gold bear market.

Rick Rules: Capitulation In Gold And Resource Markets.

  Please pay attention one more time what Alan Greenspan has been talking about FED and Gold! These are truly remarkable revelations at this particular turning point.

Bloomberg: 1,500 Tons Of Gold On The Line In Swiss Vote To Buy Back Bullion.

  

Bloomberg.

  The story about Swiss Gold Referendum has made its way up to the Bloomberg. Now everything depends on the people of Switzerland, but at least we will have the opportunity for the proper discussion about the FIAT Currency systems and Gold. China is not only buying record amounts of gold now, but taking out the best long term mining assets all over the globe.

TNR Gold Los Azules Copper M&A: Barrick In Talks With Chinese Miner Zijin On Pascua-Lama Investment.

Grant Williams: All You Need To Know About Swiss Gold Referendum.

Great presentation from Grant Williams on this groundbreaking event for the Switzerland and the Gold market! We are close to the very important catalyst point for the Gold market now.

Bloomberg:

1,500 Tons of Gold on the Line in Swiss Vote to Buy Back Bullion 

There are people in Switzerland who resent that the country sold away much of its gold last decade. They may be a splinter group of Swiss politics, but they’re a persistent bunch.
And if they get their way in a referendum this month, these voters will make their presence known to gold traders around the world.
The proposal from the “Save Our Swiss Gold” proponents is simple: Force the central bank to build its bullion position up to at least 20 percent of total assets from 8 percent today. Holding 522 billion Swiss francs ($544 billion) of assets in its coffers, theSwiss National Bank would have to buy at least 1,500 tons of gold, costing about $56.3 billion at current prices, to get to the required threshold by 2019. More on Bloomberg."

Grant Williams: All You Need To Know About Swiss Gold Referendum.

Great presentation from Grant Williams on this groundbreaking event for the Switzerland and the Gold market! We are close to the very important catalyst point for the Gold market now.

The China Money Report: Gold At $7,000 Article Goes Viral In Chinese Media.

  The timing of this article is very interesting: we have the upcoming Swiss Gold Referendum, China buys record amount of Gold and there are more voices about US Dollar losing its reserve currency status every day. Nobody knows the future, but it is important to note: "... that most of Chinese economist think that the price of gold should be $ 2,400 / once." Read more."

Koos Jansen: The Chinese Precious Metals Market Is On Fire.

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

First Polls On Swiss Gold Referendum Show 45% Support, 39% Opposing, 16% Undecided.

TNR Gold Shotgun: NOVAGOLD Reports Major Progress in Advancing Donlin Gold up the Value Chain.

  

  We have the major news for Alaska Gold mining industry from our neighbours - Donlin Gold is moving forward! NOVAGOLD and TNR Gold were developing Shotgun Gold project together and in 2010 our company has consolidated the project and now owns 100% of it. NOVAGOLD has received TNR Gold's shares and warrants. Greg Johnson - one of the founders of NOVAGOLD has joined TNR Gold board after our very impressive results from the drilling program in the Fall 2012. Please watch the video to find out his personal statement: Read more."

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

Koos Jansen: The Chinese Precious Metals Market Is On Fire.

  Koss Jansen continues his brilliant work and brings us another confirmation about the real situation with the Gold market. China moves into the next stage of Gold accumulation breaking all previous records.

  Initial polls from Swiss Gold referendum put this news in the context, so who will come up on the top of this game and create the gold-backed currency first?

First Polls On Swiss Gold Referendum Show 45% Support, 39% Opposing, 16% Undecided.

 "We have first reports on Swiss Gold Referendum polls and I would like to share the very important news for TNR Gold.
  Do we have the chance now for the Gold backed Swiss Franc? Can the direct democracy in action initiate the change in the world financial system? Will China follow with its enormous appetite for Gold now? We have a lot of questions to answer, but these developments will mark the very important point in the history.
  I am personally very impressed with these initial results considering almost total silence in mass media about this groundbreaking event in the heart of Europe. Read more."

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

Koos Jansen:

The Chinese Precious Metals Market Is On Fire

Chinese gold demand 67 tonnes in five days

Published: 19-10-2014 23:07

The Chinese national holiday, The Golden Week, is over and the latest data from the Shanghai Gold Exchange (SGE) shows the Chinese have been buying extraordinary amounts of gold before and after this holiday. The SGE was closed from October 1 to 7, the latest SGE withdrawal numbers cover September 29 and 30, and October 8, 9 and 10. In these 5 days 68.4 tonnes were withdrawn from the SGE vaults (in the mainland and the Shanghai Free Trade Zone)    

Blue is weekly withdrawals in Kg's, green is year to date withdrawals in Kg's. 

Because the SGE still isn't disclosing withdrawal numbers from mainland and FTZ vaults separately we have to subtract the volume traded on the Shanghai International Gold Exchange (SGEI), located in the FTZ, from total withdrawal numbers, just in case all buyers on the SGEI opted for withdrawal, to come to the amount of withdrawals in the mainland (which equals Chinese wholesale demand). Although it's highly unlikely all SGEI traded volume is withdrawn from the vaults, for the time being I'm forced to choose understating mainland withdrawal numbers rather than overstating. 

After subtracting SGEI volume from total withdrawals numbers, withdrawals from the mainland vaults (= Chinese wholesale demand) can not have been less than 66.91 tonnes. Year to date withdrawals can not have been less than 1492.59 tonnes. 

According to my simplified equation to calculate Chinese gold import (import = SGE withdrawals - mine - scrap), China has imported 957 tonnes year to date. Domestic mining stands at 356 tonnes (based on an estimated total of 451 tonnes for 2014) and scrap stands at 181 tonnes (based on 229 tonnes recycled gold in 2013).

Shanghai silver remains scarce, on the Shanghai Futures Exchange (SHFE) silver has been trading in backwardation Since august 6. The scarcity has diminished the discount of silver in China relative to London significantly. Throughout October the discount was lower than 4 %.

  

If the discount of the pure price of silver in Shanghai reaches zero and becomes a premium, demand for silver on the world market will increase as the Chinese will start importing silver bullion.

At this moment the pure price of silver in China is lower than in London for two reasons:

(i) The costs for mining silver in China is significantly lower than elsewhere across the globe. For example Silvercorp can mine silver in the mainland for $9 an ounce. 

(ii) China's economy is heavily dependent on copper and other base metals such as lead and zinc. By importing copper, lead and zinc concentrates that contain silver as a byproduct China is incidental importing silver.    

The reason the price difference is a not arbitraged is silver bullion export from the mainland enjoys 17 % VAT (no restitution). Which in affect is an export tariff of 17% to protect silver from leaving the mainland. Read: the State Council is protecting the Chinese silver market to offer their citizens to invest in silver below international prices.     

SHFE silver inventory has stabilized now all the metal that was brought into the warehouse to cash and carry silver (in times of a steep futures contango curve) has been depleted. Total SHFE silver inventory now stands at  94.807 tonnes. 

If we combine the last to charts we can see that whenever silver is trading in backwardation, inventory is dropping or stabilizing. If silver is not trading in backwardation (and the contango curve is steep enough), it can cause inventory to increase as the cash carry arbitrage opportunity arises (explained here).   

All in all, there is strong demand for silver and gold currently in China, though the mainstream media might tell you different.  

Koos Jansen

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First Polls On Swiss Gold Referendum Show 45% Support, 39% Opposing, 16% Undecided.

  We have first reports on Swiss Gold Referendum polls and I would like to share the very important news for TNR Gold.
  Do we have the chance now for the Gold backed Swiss Franc? Can the direct democracy in action initiate the change in the world financial system? Will China follow with its enormous appetite for Gold now? We have a lot of questions to answer, but these developments will mark the very important point in the history.
  I am personally very impressed with these initial results considering almost total silence in mass media about this groundbreaking event in the heart of Europe.

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

Markus M. Muller reports:

Markus M. Müller ‏@netmex  4h4 hours ago

First polls on Gold vote in Switzerland show 45% support, 39% opposing, 16% und.

"Verhältnismässig schlechte Karten scheint die Goldinitiative aus dem Umfeld der SVP zu haben. 45 Prozent Zustimmung stehen 39 Prozent Ablehnung gegenüber. Ganze 16 Prozent wollten sich noch nicht festlegen. Für sie könnte ein Blick ins Argumentarium der beiden Lager aufschlussreich sein: Die Befürworter finden, die Nationalbank müsse genügend Reserven haben und im Ausland aufbewahrtes Gold müsse zurück in die Schweiz gebracht werden. Hauptargument der Gegner ist, dass mit der Initiative die Unabhängigkeit der Nationalbank gefährdet wäre."

Gold-Initiative

Source: http://www.20min.ch/schweiz/news/story/53-Prozent-wuerden-Ecopop-zustimmen-18806605

Switzerland Is Only Country That Would Vote For Bigger Gold Reserves.

  I continue to follow Swiss Gold Referendum developments and would like to share the very important news for TNR Gold.

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".

Stay tuned: new presentation will reflect this very important development for our company.

TNR Gold Investor Presentation March 2014 from Kirill Klip

Kitco:

Switzerland Is Only Country That Would Vote For Bigger Gold Reserves - European Analyst

By Neils Christensen, of Kitco News
Friday October 17, 2014 9:00 AM

(Kitco News) - If there is one country in the world that would vote yes in a referendum to force its central bank to increase its gold reserves, it would be Switzerland, said one Liechtenstein fund manager.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report, said that he is not surprised there is a campaign to increase the country’s gold reserves as the yellow metal has had a long tradition of being linked to the Swiss franc.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report

“Switzerland used to have the highest gold reserves per-capita in the world up to about 10 years ago,” he said. “A lot of people still believe that gold is the foundation and the backbone of a strong currency.”

Stoeferle is in a unique position regarding the gold vote because Liechtenstein, which borders Switzerland, uses the Swiss franc as its currency. The vote, if passed, could have an impact on the country’s currency because it would impact the Swiss National Bank’s foreign reserves. Although Liechtenstein doesn’t get a say in the Swiss referendum Stoeferle has been following the initiative closely.

On Nov. 30, Swiss citizens will go to the polls to vote on three areas; 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.

With less than two months to go, Stoeferle explained that the Swiss gold referendum has now started to attract a lot of attention across the globe; however, he added that it is still too early to determine how popular the initiative is among the Swiss populace. He added that the campaign, started by the Swiss People’s party in April of 2013 after they collected more than 100,000 signatures to force the referendum, is expected to begin in earnest on Oct. 21.

Although it is still too soon to gauge the sentiment in the country, Stoeferle added that a lot of people aren’t happy that the central bank has expanded its balance sheet to weaken its currency and stimulate growth. Since 2011, the SNB has pegged the franc to the euro and maintains a floor of 1 euro to 1.20 francs.

“A lot of people believe that debasing the currency is not a sound economic policy,” said Stoeferle, “There is no evidence that a weak currency leads to long-term economic growth.”

The yes camp is up against some strong opposition as both the Swiss government and the national bank have urged people to vote down the gold initiative. Last week the Swiss government continued its campaign against the referendum as Eveline Widmer-Schlumpf, the country’s Finance Minster said at a press conference in Bern, that fixed gold reserves would impede the SNB’s monetary policy.

Although there are some short-term benefits from a weaker currency like increased exports, Stoeferle said that he doesn’t believe those benefits outweigh the weaker purchasing power on imports. Instead, he added, the government should be implementing stronger economic policies and encourage companies to be more efficient to compete in the global marketplace.

“Perhaps a weaker currency makes good short-term gains but a central bank should not act like a hedge fund. I think they need to think in the long-term what is best for the country and the currency,” he said.

Whether the referendum passes or not, Stoeferle said the next few weeks will be an interesting time for the country as the population discusses the future of its central bank’s monetary policy. He is expecting the referendum to raise awareness of the country’s economy and currency.

“This initiative is the result of direct democracy, which is something the people are very proud of,” he said. “This referendum will impact the country’s economy and currency and I think the people will very quickly become interested in this discussion.”

Currently Switzerland holds about 1,040 metric tons of gold, which makes about 7.8% of its foreign reserves. Last week currency analysts at Nomura said if the referendum passes the country will have to triple its reserves during the next five years to meet its 20% commitment. They added that the SNB will have to purchase between $67 and $83 billion worth of gold.

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

Frank Holmes: Gold Appears to Have Reached a Bottom.

  Frank Holmes gives a very good observations of the driving forces in the gold market and point our attention to Swiss Gold Referendum again.

Swiss Gold Initiative Referendum to Acquire 1500 tons of Gold.

On November 30th, the 8 million citizens of Switzerland will vote either YES or NO in an opportunity to determine the fate of their own financial system. On the ballot will be three matters which would effectively make Switzerland the first country in the world with an official partial gold-backing of their currency. Citizens will vote on: 

1) Returning their national gold which is held abroad back to Switzerland 

2) Requiring the Swiss National Bank to hold 20% of their assets in physical gold 

3) Prohibiting further gold sales 

What will a “YES” vote mean for Switzerland and gold? Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

Kitco:

SWOT Analysis: Gold Appears to Have Reached a Bottom

Strengths

• After the one-week holiday, Chinese consumers returned to the gold markets. Gold futures rose this week as many anticipate the Chinese will take advantage of lower gold prices. Indeed, gold seemed to withstand recent decreases in oil prices as well as increases in the dollar, implying that many investors are taking advantage of the bargain prices. On Friday, the Bank Credit Analyst highlighted that gold prices are unlikely to break down after successfully bouncing off support at $1,200 and are poised to stage a relief rally into the end of the year.

• Franco-Nevada Corp. has entered into an agreement with Lundin Mining Corp. to acquire a gold-silver stream. Lundin recently purchased an 80-percent interest in Freeport-McMoRan’s Candelario/Ojos del Salado mining complex in Chile.

• There was a significant amount of positive news from many companies this week. Balmoral Resources Ltd. reported that its drill results revealed a higher-grade potential at its Martiniere property. Romarco Minerals, Inc. received its awaited 401 Water Quality Certification for its Haile project. Lastly, Richmont Mines raised its gold output view to 85,000-90,000 ounces, claiming strong performance from Island Gold mine.

Weaknesses

• This week, Deutsche Bank recommended shorting gold due to the strong dollar environment. 

• A continuation of the prevailing socialist model in South America, Chile’s Supreme Court granted a petition by the Diaguita communities to overturn a resolution to develop the El Morro gold-copper project joint venture (JV) in Chile. This is the third time Goldcorp’s El Morro project has been suspended in three years.

• This week Luna Gold established a special committee of independent board members to look into strategic alternatives. The stock tumbled as much as 30 percent on the news.

Opportunities

Multiple opportunities relating to the Swiss National Bank Gold Initiative:

• Switzerland has decided to hold a vote on the initiative, which would force the central bank to hold at least 20 percent of its assets in gold. The initiative, scheduled for a November 30 vote, would forbid the sale of any holdings and require them to be held in Switzerland.

• If passed, the Swiss National Bank would have to buy roughly 1,500 tonnes of gold over five years to meet the 20-percent requirement. Since 1993, the Bank has reduced its gold holdings by 1,550 tonnes, the largest liquidation by any central bank. Changing from the largest seller to a rapid buyer should create serious tailwinds for gold.

• The initiative put forth in Switzerland is part of a larger theme relating to increased gold purchases by central banks. Global central bank reserve holdings had been declining without interruption since 1989 until the financial crisis. Since 2008, there has been a steady rise in central bank gold holdings. With the possibility of substantial purchases from the Swiss National Bank, this rise should continue.

Threats

• This week, BMO Capital Markets, Morgan Stanley and ANZ all reinforced their negative outlook for gold prices. While this consensus is negative, such wide consensus agreement usually coincides with a reversal in the going trend.

• The World Gold Council is calling on India to mobilize and monetize its household savings imbedded in physical gold stocks. If the Indian government decides to use the idle gold from households and temples, it would reduce the need for future imports, which would be negative for global gold demand.

• Uncertainty from residents of the Mokopane area in the northern Limpopo province of South Africa is threatening to hold up Robert Friedland’s platinum project. The billionaire promised the residents a 20-percent stake in the project, but the residents remain unsure of the exact method of repayment for the project.

Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors"