Switzerland on the Verge of Buying Back Gold?

A vote in Switzerland is scheduled to take place at the end of the month as the country examines whether or not to buy back some of its gold, which would help a slumping gold market.

According to Bloomberg:

Holding 522 billion Swiss francs ($544 billion) of assets in its coffers, the Swiss 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.

Those purchases, equal to about 7 percent of annual global demand, would trigger an 18 percent rally, giving a lift to gold bulls who’ve suffered 32 percent losses in the past two years, Bank of America Corp. estimates.

Joni Teves, an analyst at UBS AG, said:

It would have a major impact if it passes. If they do launch a buying program, it would have effectively a constant bid in the market.

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