Former U.S. Rep. Ron Paul, who is a strong proponent of gold-backed currencies, said in an exclusive interview with Kitco News the fact a referendum on gold reserves was triggered in Switzerland demonstrates that people around the globe are starting to question the reliability of fiat currencies.
On Nov. 30 Swiss voters will vote on three initiatives as part of the gold referendum: whether or not the Swiss National Bank should increase its gold reserves to 20%, that the central bank should stop selling its precious metals and that all its gold should be held within the country.
"People are starting to talk about gold more and they should," he said. "(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."
Although recent polls showed some popularity for the "Save our Gold" initiative, which was first launched in 2013 by the Swiss People's Party, Paul said there is a concerted effort by the Swiss government to oppose the initiative. He added that he is expecting as the Nov. 30 deadline looms closer to see stronger fear tactics from the Swiss government and the Swiss National Bank to convince people to vote against the initiative.