The Swiss vote is a little over a month away and will change the demand perspective of the next three years. Like the recent romp of the GBP in the lead up to Scotland's independence vote, markets will typically run with the highest returning outcome. In golds favour, this will see a rise until the conclusion of the Swiss vote, either, booming on a 'yes' or collapsing back to current prices on a 'no'.
The Swiss will need to purchase 1,500t over a three year period, who knows where it will come from considering the GLD only has half that left.
I'm no gold bug, although, I can see this as a game changer for the gold market and believe traders will be positioning on the long side and withdrawing shorts for a possible moonshot - I expect the POG to be strong until the vote...
