Former U.S. congressman Ron Paul believes the Swiss gold referendum – an upcoming vote on whether Switzerland’s central bank should increase its gold reserves to 20% – is a “healthy conversation” on the role of central banks. The vote is set to take place on November 30.
Paul is known to be a strong supporter of gold. In early August, he spoke with CNBC about the importance of physical gold as a protective hedge and long-term store of value.
In a recent interview with Kitco News, Paul said even though the so-called “Save Our Gold” initiative may not pass, at the very least it shows that more people are starting to question the actions of central banks and the reliability of paper currencies. As Paul puts it:
“People are starting to talk about gold more and they should. [The referendum] is one more step in the direction of proving that paper money, fiat money, money created by politician out of thin air to subsidize big government and monetize debt is going to end.”
He adds that regardless of how the vote turns out, “it is the discussion that is the most important.”
If the referendum passes, not only would Switzerland’s central bank be required to purchase about 1,500 metric tons of gold in order to up its reserves to 20%, it would have to store all of its gold within the country. Paul believes the latter requirement is just as important as the former. (Currently, Switzerland holds about 70% of its gold within the country, 20% with the Bank of England, and 10% with the Bank of Canada.) He said:
“That is a natural and normal healthy instinct and I think other countries ought to do it. It’s sort of like holding gold for personal reasons … If I am holding gold for emergency reasons, I want to know where it is and I want access to it.”
Paul’s comments are not just relevant to Switzerland, but to private investors as well. When it comes to owning physical gold, many investors enjoy the peace of mind it allows them to achieve, knowing their gold is securely stored and that they may take possession of it or liquidate it for cash if necessary. American Bullion helps clients reach this goal every day, either through a Gold IRA rollover or cash purchase for home delivery. Call today at 1-800-326-9598 to speak with an agent dedicated to helping you take the steps towards protecting your financial future.