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The Greeks Are Running Towards Gold As The Retail Demand Increases By 123%
No solution has been reached yet for the Greek debt crisis and this grid-lock could continue for the next few weeks as it’s usually just in the final few hours before a deadline a solution is reached. A nice strategic chess game is currently going on and some sort of agreement will eventually be reached and then it will be interesting to conduct a damage control assessment on the other Eurozone-members.
The Greek citizens aren’t really looking forward to any ‘solution’ and have been buying gold ‘en masse’. Even though the Central Bank of Greece said it hadn’t noticed an increase in demand for gold coins (but let’s not even start to discuss the veracity, reliability and credibility of the Greek central bank at this point), a spokesperson of the UK Royal Mint said there definitely was an uptick in the demand for precious metals from Greek buyers.
But wait, we should have a look at the CBG’s statement that there was no demand increase. According to the official numbers from the Greek Central Bank, it sold almost 5,900 golden British Sovereigns in January whilst it sold a total of 7,857 coins in Q4 2014. If we would extrapolate the 5,849 coins in January, we would end up with a quarterly sales rate of 17,500 coins, or more than TWICE the sales for Q4 2014. That’s a 123% increase, but the central bank is stating it hasn’t seen a noticeable increase. Maybe their and our definitions of ‘noticeable’ are different, but if the demand for gold suddenly more than doubles, we wouldn’t really describe it as ‘no change’.
Despite finding it interesting to see a jump in the demand for Sovereigns (which generally carry a higher premium than the more popular Canadian Maple Leaf or South African Krugerrand), it’s excellent to see at least some of the Greeks are starting to realize it’s not too late (yet) to protect their assets and purchasing power. As you can see on the next chart, the gold price expressed in EUR is still up by approximately 11% in the past 2 months, compared to just 2% expressed in USD.
The Greeks are in a catch-22 situation. If they remain in the Eurozone the pressure on its economy will remain, but if the country leaves the currency block, the reinstatement of the Drachme would destroy the capability to import necessary goods. In both cases gold will be a viable alternative to safeguard a person’s net value. It has been proven the central banks aren’t keeping people’s best interests at heart, so the best way moving forward is to have your own little central bank with a percentage of your net assets being backed by physical gold (and silver).
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With a crowbar!
Gold will survive the PONZI scheme, paper notes WILL NOT!
Many will wake up only to find the shiny has gapped up and they will be
left out out in the cold.
(deleted)
Do you mean that by purposely devaluing the country, and extending unpayable loans that would then effect the voting class, meaning the pissed off, [but unskilled in everything],young people would somehow put any gold left at risk. That could only lead to socialism and or fascism. Are you sure, Dicey? Oh yeah, they elected an ex-communist. Same plan in USA. Crowd of never worked a day in his/her life vote. Gimmee,gimmee,gimmee, I am entitled!
make it rain gold
https://www.youtube.com/watch?v=S4v-_p5dU34
This is the springtime of my loving - the second season I am to know
You are the sunlight in my growing - so little warmth I've felt before.
It isn't hard to feel me glowing - I watched the fire that grew so low.
It is the summer of my smiles - flee from me Keepers of the Gloom.
Speak to me only with your eyes. It is to you I give this tune.
Ain't so hard to recognize - These things are clear to all from
time to time.
Talk Talk - I've felt the coldness of my winter
I never thought it would ever go. I cursed the gloom that set upon us...
But I know that I love you so
These are the seasons of emotion and like the winds they rise and fall
This is the wonder of devotion - I see the torch we all must hold.
This is the mystery of the quotient - Upon us all a little rain must fall.
It's nice to see something of value get 10+ million views. It been awhile since I've heard the song.
Based on this increase in demand I expect gold prices to plummet in the morning. <sigh...>
Up is down. Black is white.
Gold Sovereigns are exempt from Capital Gains Tax in the UK. One of the few escape routes we have left....for now.
http://www.hmrc.gov.uk/manuals/cgmanual/CG12602.htm
http://www.hmrc.gov.uk/manuals/CG4manual/CG78308.htm
For one: Greece should immediately stop all "debt" payments to the ECB, IMF, German banks and bondholders.
Two: Simply default on all debt and Get out of the EU and Euro,
Three: Adapt the U$D as its national currency, (plenty of dollars froating around worldwide) and then gradually print Drachams (again).
Ecuador, El Salvador and Panama all use U$Dplus many other,....
https://en.wikipedia.org/wiki/Dollar
http://rt.com/business/232887-greece-eu-talks-break/
The Sovereign shouldn't be directly compared to the Maple and the Krugerrand - the proper equivalent is the one ounce Britannia where the premium is more in line with the other two. The Sovereign is closer to a quarter ounce so the premium per coin is going to be larger.
DavidC
So, the Greeks are pretty much foreshadowing and telling us what is going to happen next.
Greece out of the Euro, Drachma opens at 10 Drachmas = 1 Euro, 2 days later, it will be 50 Drachmas = 1 Euro on the black market. 5 fold devaluation = Win for Greece. Soon, German vacationers will be flocking to the Greek beaches, because their money will buy more.
Who knew? Nobody, of course.
/shrug
I heard ISIS issues a gold backed currency. If I were Greece I would invite ISIS to take over the country.
What good will a gold backed currency do you when your head is cut off.
tails ISIS wins, heads you lose?
Of course, as an American one has a much greater chance of being killed by a cop (or a toddler or brain eating parasites or lightening...) than by a terrorist. So why all the hubbub, Bub?
.
If I were Greek, I would running to the US dollar with both hands and feet (I run like a dog). Gold and silver are shiny, but I can't spend them.
You may not be able to spend gold or silver but you can TRADE it for any currency you like. That may not be true of dollars all that much longer.
If I were Greek, I'd save money by eliminating my deodorant budget, and my dating pool would expand by n, where n is the number of female cousins I have.
You mean to tell me that the Greeks (at least the smart ones) don't want their euros turned into drachmas?
That seems very unpatriotic of them. I suggest we go over to their house and pillage their coin stash and smash all their windows by way of punishment.
Good plan, except that three or four governments will get there ahead of us.
+1 for the broken window reference
And gold is still going down?
Strange is'nt it ? Almost seems manipulated by central bankers.
Maybe they are buying bitcoin. Seagate will pop tomorrow if it's true.
So I would think all of Europe is buying gold right now.
The banks will get bailouts whilst Governments get zee gold.
That says to me no banks, no euro's. Just speculating again tho.
I can confirm that EVERY European with some wits left is buying gold. As much as he can get. Physical.
One of the most economically distressed first world countries on the planet increases gold consumption by 3k ounces. 3k ounces for a population of 11 million?
I'm with the CBG on this one. Not even worth writing about. If this is all the increased demand we can expect from a global economic collapse we may as well dump metal for paper right now.
Think of it in terms of average wealth per citizen. For Greece that's a high number.
So the biggest bank robbery in the History of the planet, and the NSA knows nothing... I'm Impressed /s
and oh yeah Greece is bad also.
Greece pledged all their gold for the last bailout.
I am surprised their hasn't been an announcement about lead painted bars or an empty vault.
https://craigeisele.wordpress.com/2012/02/24/greece-had-to-pledge-all-of...
I am under the impression that the Greek central bank holds most of it's gold in Greece. It is the issue of sale of assets to cover ECB issued debt that got the current gov't elected. I suspect the gold will stay in place for now.
What currency do you use for transactions?
Hen eggs or crack rocks?
What about the potential for confiscation of gold and silver by the government and bankers?
They gots to find it first don't they?
If I lived in Greece I would have my savings in sovereigns with a modest percentage in cash. I would keep only enough in the bank to cover a few months expenses.
I think many Greeks understand that but it is the persioners who are trapped in the system.
And those pensioners are fucked as is anyone else whose wealth is going to be trapped in Greece. The wonderful "socialists" will nationalize their savings "for the greater good". Capital controls, theft of savings, and beggar thyselves is what's coming to Greece.
So in essence, nothing more than a true accounting and a pulling back of the curtain that has hidden the charade.
for the rest of the Eurozone it will be money pringint and the theft of wealth through the printing press then when the effects are realized a rush to Federalize Europe to save themselves from themselves.
Should have listened to Keiser.
I just can't imagine WHY?
Has all their GOLD & SILVER been stolen from the west?
Will BitCoin break $1000 US again?
I am just amazed that the Dollar is even accepted anywhere..