Swiss Gold Stored At “Decentralised Locations” – SNB Does Not Disclose Where
Posted Thursday, 3 May 2012 | | Source: GoldSeek.com
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There
are increasing calls in Switzerland for transparency regarding the
location of the remaining Swiss gold reserves. The Swiss National Bank
said overnight that it keeps its gold in “decentralized” locations,
according to Walter Meier, a spokesman for the Swiss central bank as
reported by Bloomberg.
The SNB has also sold a large part of the Swiss gold reserves in recent years.
There are deepening concerns in Switzerland about the debasement of the Swiss franc. The SNB has pegged the franc to the euro and is engaged in the same ultra loose monetary policies as the Federal Reserve, BOE and the ECB. The SNB won't allow the franc to rise above an arbitrary “ceiling” against the euro Walter Meier himself said on April 5 that the SNB is ready to buy foreign currencies in "unlimited quantities."
The SNB has also sold a large part of the Swiss gold reserves in recent years.
There are deepening concerns in Switzerland about the debasement of the Swiss franc. The SNB has pegged the franc to the euro and is engaged in the same ultra loose monetary policies as the Federal Reserve, BOE and the ECB. The SNB won't allow the franc to rise above an arbitrary “ceiling” against the euro Walter Meier himself said on April 5 that the SNB is ready to buy foreign currencies in "unlimited quantities."
Meier’s comments regarding the vastly depleted Swiss gold reserves came after Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland, called on the SNB to disclose where its gold is stored, in a letter published in the respected Swiss publication Finanz und Wirtschaft.
Meier
said that the SNB holds its physical gold reserves “domestically and
internationally, with provisions for a crisis scenario being a main
factor in the decision for this decentralized storage”.
“The criteria for the storage countries are: appropriate regional diversification, exceptionally stable economic and political environments, immunity for central bank investments, access to a gold market where stocks could be liquidated if necessary,” he continued.
He concluded by saying that “such a decentralized storage is still preferable to an exclusive storage in Switzerland. The listed factors can change over time and that’s why the central bank is reviewing and adapting the storage locations periodically.”
“The criteria for the storage countries are: appropriate regional diversification, exceptionally stable economic and political environments, immunity for central bank investments, access to a gold market where stocks could be liquidated if necessary,” he continued.
He concluded by saying that “such a decentralized storage is still preferable to an exclusive storage in Switzerland. The listed factors can change over time and that’s why the central bank is reviewing and adapting the storage locations periodically.”
The SNB’s monetary policies have been imprudent in recent years and their gold sales have lost the Swiss people a lot of money.
Switzerland holds 1,040.1 metric tons of gold, accounting for about 19% of its total reserves, according to the World Gold Council. This is down from 2590 tonnes prior to the SNB gold sales which began in 1999. The sale of Swiss gold reserves has cost the Swiss people some $50 billon.
Swiss GDP was $523 billion in 2011 so the SNB has lost some 10% of Swiss GDP from the sale of a large part of their national patrimony – their vitally important gold reserves.
Many Swiss people are concerned that their remaining gold reserves may be stored in foreign jurisdictions (possibly less safe than Switzerland) which could nationalise or expropriate their reserves in the event of some form of financial or economic collapse or currency crisis.
Hence, increasing calls of transparency regarding the locations of their gold and calls for the gold to be stored in Switzerland.
Switzerland holds 1,040.1 metric tons of gold, accounting for about 19% of its total reserves, according to the World Gold Council. This is down from 2590 tonnes prior to the SNB gold sales which began in 1999. The sale of Swiss gold reserves has cost the Swiss people some $50 billon.
Swiss GDP was $523 billion in 2011 so the SNB has lost some 10% of Swiss GDP from the sale of a large part of their national patrimony – their vitally important gold reserves.
Many Swiss people are concerned that their remaining gold reserves may be stored in foreign jurisdictions (possibly less safe than Switzerland) which could nationalise or expropriate their reserves in the event of some form of financial or economic collapse or currency crisis.
Hence, increasing calls of transparency regarding the locations of their gold and calls for the gold to be stored in Switzerland.
