Greeks Turn Savings To Gold And Perth Mint Silver Coin Sales Surge To Record On Safe Haven Demand

Tyler Durden's picture

From GoldCore

Greeks Turn Savings to Gold and Perth Mint Silver Coin Sales Surge to Record on Haven Demand

Gold is lower in dollars but higher in euros and has reached new
record highs in pounds sterling at £958.25/oz. Gold is being supported
by strong and increasing demand internationally. 

Sterling has fallen after the BoE minutes raised concerns of further
quantitative easing and currency debasement. The Bank of England looks
increasingly likely to maintain its ultra accommodative monetary
policies. Interest rates may continue to remain at multi century lows
and the BoE is again considering more printing of money to buy
government debt.

UK Interest Rates – 1700 to Today

Despite Papandreou winning yesterday’s vote, the Greek parliament
must now approve the austerity measures and this is leading to
continuing nervousness in markets.

Cross Currency Rates

European equities have been sold this morning and Italian, Portuguese
and particularly Irish debt are under pressure showing that the risk of
contagion remains real. There remain many possible impediments to a
solution to Greece's and the Eurozone’s sovereign and banking debt
crisis. That is, if indeed, a solution is possible given the scale of
the crisis and the fact that it is systemic.

Gold in British Pounds – 30 Days (Tick)

Gold and silver’s increasing safe haven status is seen in news from
the Financial Times (front page) and from Bloomberg today (see news).

The Financial Times reports that “Greek citizens are emptying savings
accounts and buying gold as they brace themselves for the possibility
of a sovereign default and a run on the banks.”

Sales of gold coins have soared as savers seek a safer and fungible source of value, says the FT.

“When the global financial crisis started, our sales of coins to
investors overtook bullion for the first time,” said Harry Krinakis, at
Sepheriades, a Greek precious metals trader. “Now the sales ratio has
reached five to one.”

Tomas, a computer technician, has exchanged his euro savings for gold
coins: “I keep them at home just like my grandmother did in the second
world war.”

Athens Stock Exchange General Index – 10 Years (Weekly)

Gold is again being seen in Greece as an essential store of wealth, hedge against inflation and safe haven asset.

This is not surprising given the scale of the crisis and the sharp
falls seen in Greek property and equity markets (see chart above).

The fact that gold cannot default or go bankrupt unlike every single
corporation, bank and government in the world is making it the safe
haven of choice again.

There is also the important fact that it cannot be debased by bankers and central bankers unlike currencies and bonds.

Greece is the canary in the coalmine and the likelihood is that what
is happening in Greece today, people using their cash deposits in banks
to buy gold bullion, will be seen in many other countries in the coming

Indeed, news from the Perth Mint of record sales of silver coins is indicative that this trend has already begun. 

Bloomberg reports that “Silver-coin sales from Australia’s Perth
Mint, which was founded in 1899 and processes all of the country’s
bullion, have surged to a record as buyers seek to protect their wealth
with the metal known as poor man’s gold.

The mint sold 10.7 million 1-ounce silver coins since July 1 last
year, according to Sales and Marketing Director Ron Currie. That’s 66
percent higher than the previous full fiscal year and about 10-fold more
than five years earlier. Sales of 1- ounce gold coins will be close to a
record, he said. 

Confirming robust demand internationally, UBS said that its gold
sales to India have increased significantly and that sales of gold coins
and bars in Europe have also accelerated in recent days.

GoldCore has seen a marked increase in sales last week and this.
Silver in particular had seen a sharp drop in sales since late April but
buying renewed again last week. Renewed buying comes after a long
period of hesitancy on behalf of many clients since the sell off at the
end of April led to heightened concerns that the “bubble” had burst. 

Yet another indication, if one were needed, that gold is anything but
a bubble comes in the news that the People’s Bank of China is planning
to double its issuance of gold bullion Chinese gold coins.

Both the FT and Bloomberg report that the People’s Bank of China
plans to issue about 1 million ounces of its 2011 panda gold bullion
coins compared with plans at the end of last year for 500,000 ounces of
the coins.

Gold is far from being a bubble. Bubbles witness investors and
speculators greedily piling in in expectation of making quick profits.
It is quite the opposite today as risk and concern is leading to
diversification into gold and buying of gold bullion as a long term
store of wealth internationally. 

Today, those buying gold and silver are increasingly protected due to
the floor being put under precious metal prices due to Indian, Chinese
and Asian public and central bank buying of gold.

Silver is trading at $36.09oz,€25.07/oz and £22.37/oz. 

Platinum is trading at $1,740.00/oz, palladium at $763/oz and rhodium at $1,925/oz. 

(Financial Times)
Greek savers rush for gold

China Central Bank Plans to Double Issuance of Gold Panda Coins

(Business Week)
Gold May Gain in New York on Weaker Dollar, Europe Debt Concern

PRECIOUS-Gold steady ahead of Fed, near 2-week top

(Business Week)
Silver-Coin Sales Booming at Perth Mint on Demand for Haven


(GoldSeek) ">Gold on the brink... of what?

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Ray1968's picture

And PM futures opened down. Way to suppress the "free" markets guys!

Is it time for another margin hike yet? (Yes I'm bitter)

traderjoe's picture

Why are you bitter? Are they not offering you an opportunity to buy more now?

Long-John-Silver's picture

Take advantage of this clearance sale on PM's, while you can still get physical metals.

Michael Victory's picture

Gold is in a bubble. </sarc>

Six Gold Myths


AUD's picture

The Perth Mint gets most of its silver loco London, in other words it is mostly imported rather than mined in Australia.

So much for the shortage of silver.

WestVillageIdiot's picture

All of the silver mined in a year would sell for about $31 billion with today's prices.  The U.S. currently runs that amount as part of its budget deficit every week.  Everybody needs to remember, "That's all it takes, really.  Pressure and time.  That and a big god damn poster" to free yourself from the prison around you.  Most of us have been busy with our little rock hammers digging through the bu--shit.  The question is, "will we come out clean on the other side?" 

RockyRacoon's picture

Captain Hadley: "Uncle Sam. Reaching into your shirt and squeezing your tit till it's purple."

tmosley's picture

The Perth Mint moves twice as much silver per year as the COMEX, IIRC.

Again, more evidence of the divergence of the physical and paper markets.

Libertarians for Prosperity's picture

There is absolutely NO divergence in the paper/physical silver and gold market, other than normal wholesale/retail arbitrage. None. Even Eric Sprott has admitted this.  Stop spreading your lies. 


i-dog's picture

You really are a tool ... posting your "It's a lie" nonsense in every single thread! I gather this is Sunstein's latest disinfo tactic ... LOL!

Libertarians for Prosperity's picture

Are you calling Sprott a liar, too?  Because 30 days ago, he said he could buy silver at or near spot price.  No physical/paper divergence, at all. 


Metropolis_Minx's picture

The local coin shops in my area sell silver bullion and coin for $6 and $10 over spot. That's undeniably a divergence from paper.  Apmex: same. So it's not a local phenomenon either. Bulk purchases receive better pricing, of course. But what's germaine is the price of coin for Mr. Middle American who buys only 2-3 per week.

There IS a divergence between paper and phyzz, and it's only going to become more pronounced as more people start to buy silver. Plenitude of paper, limited supply of phyzz.

Libertarians for Prosperity's picture

The reason you're paying $6 and $10 over spot is because you're being jacked for an enormous amount of profit.   

Let me guess... did your coin dealer echo the famous tmosley quote, "price doesn't matter..."  


The only divergence is the real silver market and the coin stores that cater to the doomer fanatics who are willing to pay absurd profits for "next week's" apocalypse. Definitely a big divergence there.   




Metropolis_Minx's picture

The ma and pa coin shop I frequent the most are most apologetic for the prices they must command for their product. However, they, too, must make a profit. It's called running a business. And if they paid 40 per Silver Eagle, then they must charge a premium over that price. The market is supporting that price right now. And it will support the price when Ag is $50/oz or higher. Really...what is the fiat/trash-cash price for the intrinsic value of precious metal? Please enlighten us. Because absolutely no one knows - except for its surpressors - what the true price of Ag actually is.

It's really not that hard to comprehend. And might I add, you don't sound much like a Libertarian with Libertarian sound-money views.



False Capital's picture

Ma and pa really should learn how to hedge their purchases.

thewhitelion's picture

On an interesting side note, Sprott's silver etf is trading for 15% over spot value. 

WestVillageIdiot's picture

"There is no gold in Aqaba."

The gold bubble continues on and you guys just don't see it.  The people around me can see it.  I wish I had a silver dollar for every time they have told me that gold is in a bubble.  These are the same people that couldn't see a "housing bubble" from six feet away.

I still know of nobody in my circle that is buying gold, not one, zero, nada, nobody.  But they will still tell me gold is in a bubble.  Just think if people were actually buying. 



cossack55's picture

Just think if people were actually THINKING.

WestVillageIdiot's picture

There's a better chance of Tyler being the next Fed Chairman or Hilary Clinton being the next Miss Universe. 

G-R-U-N-T's picture

Since Irelands Minister Brendan Howlin recognizes he hasn't the capacity to think he has decided to ask the public....Perhaps setting a precedent for Greece and the U.S.. LOL, unbelievable!

THE DORK OF CORK's picture

Its sad really , but for what its worth I will throw in my two bits , double the excise duty on petrol / Diesel and so therefore keep what little money supply remains withen this country rather then giving it to rich Sheiks and selling them expensive racehorses in return for their magnificence.

Its better then raising tax on Labour and will hopefully increase efficiencies as now there is a proposal to increase fares on public transport which is now half empty and therefore create another false efficiency for the exchequer.

Its disturbing to think any rational sacrifices will go to pay off characters who engaged in catostrophic risks however - mining ideas even from Dorks can be profitable for the Usury class I guess.

Strider52's picture

Mr. Dork:  I will be in Cork next Tuesday - Wednesday. I'd love to buy you a pint. How do I contact you? (seriously).

janus's picture

Yes, but to stretch your metaphor a bit further, Aqaba's artillery is fixed facing the sea; which has something to do with their myopia, more to do with their lack of gold and everything to do with their vulnerability. 

Lone Mad Minute Medic's picture

The canary is about to fall off its perch, and there a forces in action in this country trying to make it harder for us to deal in gold and silver. These bastards are slowly circuling us with their nets.

PaperBear's picture

But gold/silver are barbarous relics.

cossack55's picture

I'm a barbarian in a barbarous world and I like relics.

augie's picture

That sentence is organized conspicuously like a line from a madonna song. 

DoChenRollingBearing's picture

+ $1554

Buy the relics while still available and relatively cheap.

PaperBear's picture

'heightened concerns that the (silver) “bubble” had burst' ?

I am shaking my head at other people's guilibility who believe silver is a bubble.

When there is a bubble in something, the majority of people do not see it as a bubble because they are on the inside looking around thinking their view is normal while ZH and others are on the outside looking at the bubble.

And when the bubble that is fiat paper currencies finally pops, someone did tell you it was a bubble but you did not listen.

earnulf's picture

Given the recent reports of silver demand from various locals around the globe, it would appear that the physical demand from investors continues to add pressure to the cooker.    For those who hold physical, this is a good sign as the lid to the cooker can only take so much pressure before prices blow up.

Falling reserves of physical on the COMEX, changes to force settlement in paper, rather than actual, continued economic uncertainty, soaring deficits by governments that are incapable to actually running a balanced budget all contribute to upward pressure on PM's.    It's only through deliberate short selling of paper that the price continues to languish.

If silver is 15-17 to 1 in ratio to gold, and gold is at $1,500/oz, then shouldn't the value of silver be around $90-100/oz?     Of course the big thing is that you have to have it in your possession or you don't own it at all.

ATM's picture

I think the ratio only works if both gold and silver are viewed as monetary metals. I know gold is but I'm not so sure that silver as the same luster as a monetary tool. Historically it has been but I think the luster shines on gold first and foremost.

Plus silver has it's problems. It tarnishes and it is soo much more voluminous than gold. I stopped buying it because it's getting hard to store.

DoChenRollingBearing's picture

I prefer gold as well.  But, I do keep a fair amount of silver, both for the ride (wheeeeee!) and for its likely use in a TEOTWAWKI.

What's a TEOTWAWKI?  Send me a gmail, promise you will behave and I will send you the link to my blog (I publish under my real name).  Latest article: "How Much Gold Should You Hold?"

Of course I like platinum too...

Dr. Gonzo's picture

Makes sense to me. It also makes sense for the Central Bankers to bluff about gold being in a bubble, inflation being transitory, QE 3 not on the table, all while illegally manipulating the PM markets to keep the price from rising and propping up stocks to avoid panic in currencies, bank insolvencies,  unpayable sovereign debt, broke pensions and municipalities. It's called Central Planning and it's "God's work." another name for it is purposely misinforming and fucking the people so you can steal from them and always win while they lose. They go to all this trouble because they care so much about us.

Imminent Collapse's picture

Dr. Gonzo, you are my kind of guy.  Nice summary.

Broomer's picture

If gold is in a bubble why are Central bankers buying it?

RockyRacoon's picture

That is NOT a good argument.  Anything CBs do is to be ignored.

AgShaman's picture

Group 11 Whirlwind "Bits-Sez!"

sudzee's picture

Negative real interest rates are confiscating the savings of the masses. People are now waking up to that fact and withdrawing those savings from the banks. With leverage of maybe 100, every dollar or euro withdrawn from the worldwide ponzi, is bringing the system down. Gov'ts around the world need to increase leverage (print) to keep the ponzi alive. The great "con"fidence game is almost up. Ponzi fiat is moving into real money.
One thing is assured, for every dollar of savings withdrawn from the banks, it needs to be met with 100x leverage in fiat. The worldwide bank run has begun. Do your part and buy an ounce today.

GeneMarchbanks's picture

That's what happens when you have a central banking bubble and it has now begun to collapse. Failure of epic proportion dead ahead.

Metropolis_Minx's picture

Good point Gene. FRNs/debt and lies are the only bubbles I see ballooning to infinity.

How can someone honestly say that gold and silver are in bubbles when there's not enough (Ag) for everyone on just two continents to own a single ounce. I realize bubbles correlate with price--but Ag is undervalued.



idea_hamster's picture

The Greeks who buy gold coins are just doing their own nacent central bank's work for it.

After Greece defaults and exits the EuroZone, they'll confiscate all that privately held gold and use that to legitimize the new Drachma.

That woman who "keeps her gold at home"?  She not the canary -- she's the pigeon, the mark.  She'll fund the brunt of Greece's EZ exit.  She'll deserve a national medal, but she'll probably get a retirement full of Alpo.

All Greeks who exit the EuroZone early (i.e., buy gold) should have a better strategy than "mattress" for protecting themselves -- Greece has a real oil-and-vinegar mix of entrepreneurial spirit and socialist politics in their culture, making a bank safe deposit box a real peril.

Poor Grogman's picture

It's all been tried before, remember gold has already been de-monitised for at least 40 years. That worked out well for the PTB didn't it.

They are screwed and they know it.

It is the Soaring Golden Eagle that is circling the dying carcass of FIAT crapola.

The Eagle won't have to wait much longer to get all the bounty it wants.


DoChenRollingBearing's picture

ZH-er Gordon_Gekko once said:

"All else will be left behind as the Gold Mothership takes off."

He also said:



Physical only.

gwar5's picture

Watch and learn from the old timers and from Greece what to do in a collapse. Argentina, Russia before them.

World to Greece: Default now and keep your sovereignty. Default later and you lose your national assets and your soveriegnty, for naught.