Gold price crushed to deter support for Swiss initiative: report
British fund manager Ben Davies says that gold prices’ most recent collapse is part of central bank efforts to discourage Swiss voters from supporting the gold initiative to be decided at referendum on November 30.
Speaking to King World News, Davies adds that the risk and reward factors are now more favourable for gold than for any other investment:
“[Gold] is the only asset class in the world where the risk of a 10 percent loss is probably all you can see, and at the same time the upside is staggering.
“Should a ‘No’ vote result, it’s quite possible that we will get another chance to buy this market at lower prices.”
Prices recovered Thursday in European trade after a Swiss poll showed weaker support for the “Save Our Gold” initiative, which would force the Swiss National Bank to hold a fifth of its assets in the form of gold reserves and agree never to sell them in future.
Spot gold was trading at $1,189.10 an ounce, up 0.6% mid-morning Europe.
Gold futures for December delivery declined less than 0.1 percent to $1,193.50 an ounce in New York just before 10:00 am. Earlier, the price dropped as much as 1.5% and continues to behave erratically.