Here's Why the Price of Gold May Jump 20%

The Swiss National Bank's gold holdings, currently the seventh largest globally, may increase significantly under a new proposal. This change could see the SNB buying 7% of the world's gold demand annually, potentially raising gold prices by 17%. While intended to preserve national wealth, the move might strengthen the Swiss franc, harming Swiss businesses. The SNB would need to hold 20% of its assets in gold, up from 8%, possibly selling foreign currency reserves. This shift raises concerns about the franc's strength amid a global economic slowdown.

What is the proposed change regarding the Swiss National Bank's gold holdings?

How might the proposed changes affect the price of gold according to analysts?

What concerns do politicians have regarding the strength of the Swiss franc?

What percentage of its assets will the Swiss National Bank have to hold in gold under the new rule?

What potential impact could the new gold holding rule have on Swiss businesses?