Swiss Gold Rejection Deals Blow to Investors Hurt by Slump
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As Switzerland rules out that its central bank will be the next big buyer of gold, sending prices to the lowest in more than three weeks, there’s one more reason for investors to be bearish.
Voters yesterday 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.