Here We Go: Cyprus To Sell €400 Million In Gold, About 75% Of Its Total Holdings, To Finance Part Of Its Bailout

Tyler Durden's picture

Curious why every bank and their grandmother, and most recently Goldman today, has been lining up to push the price of gold as low as possible? Here's why:


Or about 10 tons of gold. But... the bailout was prefunded and there was no need to provide any additional cash? What happened: was the deposit outflow discovered to have been even greater than the worst case scenario and thus Cyprus needed even more cash? As for the buyers? We will venture a guess: central banks buying at the lows.

Finally: congratulations Cypriots. You are now handing over your gold for the one time, unbeatable opportunity to remain a vassal state to the Eurozone. But at least you have your .

The good news: Cyprus will have at least another 4 or so tons after selling the 10 demanded now, before the Troika kindly requests that Cypriot citizens sell a kidney or two to pay for the ongoing deposit outflow from its insolvent banks, and indirectly, the endless bailout of the Euro.

Full story from Reuters:

Cyprus has agreed to sell excess gold reserves to raise around 400 million euros and help finance its part of its bailout, an assessment of Cypriot financing needs prepared by the European Commission showed.


The draft assessment, obtained by Reuters, also said that Cyprus would raise 10.6 billion euros from the winding down of Laiki Bank and the losses imposed on junior bondholders and the deposit-for-equity swap for uninsured deposits in the Bank of Cyprus.


Nicosia would get a further 600 million euros over 3 years from raising the corporate income tax rate and the capital gains tax rate.


Out of the total Cypriot financing needs of 23 billion euros between the second quarter of 2013 and the first quarter of 2016, the euro zone bailout fund will provide 9 billion euros, the International Monetary Fund 1 billion and Cyprus itself will generate 13 billion, the assessment said.

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Cognitive Dissonance's picture

Why change a (legal thieving) script that still works...........and works well.

<He who owns the Gold makes the rulez.....bitches.>

Divided States of America's picture

Yup...with the recent senseless surge in EUR and the mindless tankage in Gold its all clear as to why it happened.

Seems like stealing from the poor is going mainstream all over the globe...

camaro68ss's picture

Stupid slave state to the Euro. You cant fix stupid

hedgeless_horseman's picture



Those people trading Euros for Cypriot gold do not understand the political capital invested in Europe.  They vastly underestimate what the Euro means for the Europeans, for the Euro area.

Rip van Wrinkle's picture

It means only one thing HH. Serfdom to an unelected dictatorship. Period.

flacon's picture

They are literally selling their national 'tradition'. 

Pladizow's picture

How do we get the gold?

Problem, Reaction, Solution!


SafelyGraze's picture

if tptb didn't drive down the price of gold and then demand gold from cyprus in exchange for fiat banking medium, what would be the alternative?

just steal it?

attack and kill and rape and destroy plunder?

this was is so much more civilized.


TPTB_r_TBTF's picture

them stealing the Gold this way...

... this way nobody fights back.


Peace Brother!  Peace on Earth.


That reminds me, is N.Korea gonna launch today or not?!

BaBaBouy's picture

Fecking Keysenian SCAM ...

Citxmech's picture

Thes fascists just can't fuck these poor people hard enough can they?  Of course the people seem to have lost the skills to even understand how hard they are getting fucked, let alone come up with a strategy to mitigate the fucking they're receiving.


Dark_Horse's picture

Strong hands are buying/taking delivery, weak hand are selling in forced capitulation.

It will soon be quite clear who is to be the masters and who is to be slaves.



Skateboarder's picture

Wait a tick... isn't this more gold than Germany isn't getting back from the Fed?

7-year lead time for the king, whoo.

Bicycle Repairman's picture

Cyprus still has its bitcoins, right?  So what's the big deal?

1100-TACTICAL-12's picture

Can one even wipe their ass or burn a BitCoin for heat? Hell I'd rather have Benny Bucks @ least they are good for something..

Citxmech's picture

Bitcoin is the monetary form of the Emperor's new clothes.

smlbizman's picture

i dont think their is any citizen anywhere that thinks any part of the states assets belong to them...why should they....hell, we dont  have a voice. why would one think they have anything else..... we are owned and when you're owned you don't own.... man i have to stop these 6 martini lunches...

silverserfer's picture

this is how gold confiscation occurs. No need for executive orders and fearmongering. Between the cash for gold programs for the sheep and govt bailouts for gold reservs for nations. they have it on lockdown 

bagehot99's picture

Sadly, the average Cypriot probably doesn't appreciate that this gold belongs to HIM, and is simpy held by the bank as his agent.

We are witnessing central banks, banks and bankers simply stealing money from their depositors and citizens. And we're all arguing about guns and gays.

Obama didn't miss much during his Marxist misdirection classes.

Panafrican Funktron Robot's picture

Some other countries with non-trivial gold holdings on the hit list:




Greece (already hit, 82% of their reserves in gold)


Portugal (who has 90% of their reserves in gold)


And the big whales, Italy and France

What do all these countries have in common?  Do the various crises seem random to you now?

Overfed's picture

I sure hope they don't launch before the UPS guy gets here today. I'm waiting on some important parts, dammit. ;-)

cifo's picture

All part of the template for future actions.

idea_hamster's picture

Actually, the national tradition was skirting the rules -- that was what they were selling as a money-laundering bank haven.

Now they're selling what portion of their assets were in the rest of the world's tradition.


kliguy38's picture

CONfiscation now the watchword in the endgame.......CONfidence has played its hand.......CONtrol will remain peeps

BeaverFever's picture

Why didn't they just confiscate their valuable bitcoins and call it a day?

Lugnut's picture

I have bitcoins that are gold colored. I will sell them to you for $400 each.

Ghordius's picture

+1 for "the national tradition was skirting the rules"

I'm having a fit of laughter about many of the things that are being written here

Tyler, I presume your innocence/ignorance, hence a warning: you might get a totally different opinion of the whole Cyprus Affair in the next years, i.e. when the dust settles and a few ugly truths emerge

Ghordius's picture

btw, regarding "poor" Cypriots as many are writing here... average household net worth in Cyprus is... north of 600'000

yup, Cypriots are "richer" than Americans and Britons, according to the official statistics of the national bank of Cyprus

see recent article in the WSJ

tenpanhandle's picture

one russian billionaire + one thousand destitute cypriots = average .... everyones a millionaire.


(   no junk from me:)  )

Ghordius's picture

+1 x Cypriot citizens previously only Russian citizens that received a passport through their friendly Cypriot banker? yes, this might have an impact, as I was already ranting about earlier today (reading the WSJ article)

Oh-Globits's picture

correction: They are selling their "barbaric relics" for valuable fiat euro-paper...seems like a fair trade...mmmm

Pseudo Anonym's picture

yeah, hofjuden

Serfdom to an unelected dictatorship

fonzannoon's picture

It's just a helping hand hedgeless from one friend to another. They will give the gold back once those Cyrpriots are back on their feet. That's what the Euro is all about.

Ghordius's picture

fonz, you mean "once those Cypriot banks are bank on their feet" - it was never about Cypriots and all about two banks there

meanwhile re "one friend to another" may I note that many europeans felt at that time that Cyprus should not be allowed to join?

main reason was the Turkish population in the north and the unsavory character of their political class

it was only after heavy pressure by the UK and Greece (with more support by Uncle Sam) that we relented

afterwards I had a fit of laughter when Cyprus joined the opposition to Turkey's entry to the EU, to great chagrin of the US diplomatic corps under Bush that simply did not see this coming

e-recep's picture

europeans plunder cyprus much more thoroughly than the turks. it must be the savory character of the european political class.

McMolotov's picture

The more I listen to Draghi, the more that quote stands out as an implied threat. Pay attention, all you Euro-peons.

"I must break you." —Mario "Ivan Drago" Draghi

flacon's picture

Do you have a video clip of this? 

McMolotov's picture

These questions are formulated by people who vastly underestimate what the Euro means for the Europeans, for the Euro area. They vastly underestimate the amount of political capital that has been invested in the Euro. And so they keep on asking questions like: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happen if." No Plan B.

Bearwagon's picture

We shall always remember  :-)

Big Slick's picture

"Go for it." - Rocky "Gold and Silver Stacker" Balboa

flacon's picture

Thanks, although I don't think he directly said: "I must break you."

although he may have implied it. 



Ghordius's picture

hedgeless and McMolotov - how much do you really know about the eurozone? it's difficult to estimate Draghi's "political capital", but his words do resonate strongly, here

just as an example, all countries collect various polls, twice a year, with questions that have no counterpart in the US. from last fall:

"Are you for/against a European monetary union with one currency, the euro?"

                FOR / AGAINST

Germany        69 / 26

France            69 / 27

Italy               57 / 31

Belgium          69 / 29

Netherlands  75 / 22

Luxembourg   72 / 26

Austria         66 / 28

Spain           63 / 30

Portugal        55 / 37


UK              14 / 80

just note what an outlier that the Brits represent (and remember how vocal their media is in the Anglosphere)

btw, those 14% for the EUR in the UK are probably mostly... Scots

Raven Nation's picture

IIRC, would these poll results reflect what a lot of financial people have pointed to as a central problem of the Euro Zone i.e. you can't have a monetary union without a fiscal union.

Not to argue for or against the Eurozone itself but having one without the other is essentially unworkable?

Ghordius's picture

that's pure bankster propaganda. when gold was money everywhere, where was the global fiscal union?

akak's picture

The difference there was that gold was not an unstable and fundamentally unsustainable fiat currency.

Ghordius's picture

this makes little difference when it comes to balance a budget, or only spend what you get in as taxes

and finally... debt is even harder, in gold

StychoKiller's picture

Therefore:  "Neither a borrower, nor a lender be." -- Shakespeare