
All those against this marriage, speak now
Despite the flurry of interest from investors, the proposal hasn't found much traction within the halls of the Swiss parliament. According to CNBC, only about two in five Swiss voters are in favor of the motion. "The polls so far indicate it will not pass," said Jim Steel, head of commodities strategy at HSBC. "The market has given the impression that it does not believe it would pass." In an interview with the Neue Zurcher Zeitung last Thursday, Thomas Jordan, the Swiss National Bank's president, said the initiative would make it difficult for the bank to maintain a cap of 1.2 Swiss francs to the euro. "The initiative is not in the interest of Switzerland," Jordan said. He added that it would be "disastrous" to restrict the central bank's ability to "respond to disturbances and maintain monetary stability." What are the odds? Hypothetically, if the "yes" side is victorious, what sort of impact will the market face? As previously mentioned, Switzerland will have to substantially increase its gold holdings and prices will reasonably skyrocket, correct? Not necessarily so, say analysts. If the motion goes through, analysts believe it could buoy prices up to $1,350 an ounce, roughly 18 percent higher than current prices. Michael Widmer with the Bank of America said he sees a "yes" vote creating firm support at $1,200 per ounce. Other analysts have emphasized the likelihood of price increases, but not to the extent investors have imagined. "If Switzerland buys $60 billion worth of gold over a period of 5 years … it is going to have a measurable impact on the price of gold. Will it go catapulting to new highs? Probably no," said Jared Dillian, a former Lehman Brothers Holdings ETF trader. What do you think? Take the survey below to let us know.View This PollSecurities Disclosure: I, Nick Wells, hold no direct or indirect investment in any of the companies mentioned in this article. Survey: Switzerland Looks to Vote on Future of Gold from Gold Investing News