Germany’s Central Bank Proposes "Wealth Tax" On Depositors

GoldCore's picture

Today’s AM fix was USD 1,253.50, EUR 919.12 and GBP 757.04 per ounce.
Yesterday’s AM fix was USD 1,270.00, EUR 927.82 and GBP 767.14 per ounce.

Gold fell $13.30 or 1.05% on yesterday to $1,255.10/oz. Silver slipped $0.28 or 1.41% to $19.63/oz.

Gold is marginally lower today in dollars but higher in yen and emerging market currencies. The fall in stock markets and in currency values in many emerging markets should support gold and is leading to an increase in demand for physical gold.

Gold in U.S. Dollars, Jan 2014 -  (Bloomberg)

Turkey, South Africa, Ukraine, Venezuela and especially Argentina have all seen sharp falls in their currency. Those with an allocation to gold have again protected their investments and savings.

Eurozone governments vulnerable to insolvency such as France, Spain, Italy, Portugal, Greece and Ireland should impose a “wealth tax” on their citizens, Germany’s Bundesbank proposed yesterday.

The German central bank raised the idea of an emergency “capital levy” in its monthly report.

The Bundesbank said that the levy would have to be a one-off “imposed in conditions of extraordinary national crisis”, in order to limit negative consequences for investment, and potential capital outflows.

It acknowledged that a nation in crisis would have difficulty making a convincing case to depositors and investors that any such levy would be a one-time measure.

We have argued consistently for the last 10 years that investment diversification is vitally important in order to protect and grow wealth. The very real likelihood of bail-ins means that savings diversification has to be considered.

Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide - The Essential Guide To Storing Gold In Singapore

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MeelionDollerBogus's picture

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moneybots's picture

The German central bank 'proposing' an emergency "capital levy" in "conditions of extraordinary national crisis."


Which means one is coming.

DosZap's picture

Wonder WHAT is the amount they consider WEALTH?

no more banksters's picture

"... no one can guarantee deposits, especially after the decisions of the recent EU Summit and ECOFIN for the bail-in, while in case of a new banking crisis, HFSF will suffer significant damage - in case that will still hold the largest part of the banks' shares - because according to the bail-in "rules", shareholders must also participate in the bank rescue. Therefore, according to the best scenario, the Greek Public, as guarantor of the HFSF, will be forced to sign a new loan agreement to cover additional damage thus loaded with additional debt."

Atlantis Consigliore's picture

Achtung achtung, alles lookenspeepers;

vee need dees funds un chicongo und illnois, fer der ferklempt

und ferblunget gommint, as der rats und residents flee,

yah,  icht kaput. 

DosZap's picture

Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide - The Essential Guide To Storing Gold In Singapore


Cool!, if your wealthy enough to gad about like a rich bitch.

Skateboarder's picture

Storing your wealth in vaults abroad is one-tenth percent stuff.