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Greece Shows Importance of Gold as Europeans Buy Coins and Bars
Greece Shows Importance of Gold as Europeans Buy Coins and Bars
- Demand for physical gold from Europeans surges
- Greek ATMs limit withdrawals to €60 per day
- Greeks panic buy food, fuel and medicine
- European elites threaten Greece with expulsion
- Gold not subject to capital controls or “bail-ins”
British Gold Sovereign Gold Coin
Demand for gold coins and bars from European investors has increased significantly in the past month as the Greek crisis enters a new phase.
As reported in our statement – to which Bloomberg referred in their piece – we saw a significant increase in demand from the U.K. and Ireland yesterday where sales of coins and bars were three times the average of the previous three Mondays.
The Royal Mint said that Greek demand for coins in June was double the average for the last five months and the U.S mint saw the highest sales of bullion coinssince January.
Bloomberg report that many buyers want to store their gold outside of the Eurozone, citing Switzerland as an example. We advise our clients to do the same and many have opted for storage in Singapore also.
As the crisis in Greece accelerates the value of owning gold will become more apparent to everyday people.
What is happening in Greece today may well await the citizenry of other developed economies tomorrow – as recently warned by well placed observers in notable institutions such as HSBC, Goldman Sachs and Fidelity.
Greek banks remain closed and ATM withdrawals have been limited to €60 per day. There has been panic buying of various essentials such as food, fuel and medicines across Greece, as reported by the New York Times.
This is in anticipation of chaos and disruptions of supply chains should the country be forced out of the euro and onto a much depreciated drachma.
European elites have threatened Greece with expulsion from the euro currency should Sunday’s referendum – on using austerity as a tool to deal with Greece’s unpayable debt – return a “no” vote.
Greece has fought back with Finance Minister Yanis Varoufakis telling the Telegraph,
“We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable.”
What happens next in Greece is unsure. What is assured is the insurance gold will provide going forward. Physical gold, held outside the banking system, is not subject to capital controls.
With the ECB reneging on its responsibility as lender of last resort – not the first time it has used its power to political ends in Greece – Greek banks may soon be forced to “bail-in” deposits – i.e. confiscate the cash of their customers.
American Silver Eagle 1 0z Coin
Those holding cash “under the mattress” and physical gold and silver coins will be provided a degree of security in such an environment.
Precious metals can be used directly in exchange for goods or are readily converted to cash for the same purpose while retaining their store of value until required.
Should the Greek crisis morph into a full-scale euro-crisis – if, for example, Credit Default Swaps were triggered which provoke a derivatives crunch – gold and silver would still enable you to secure life’s necessities if the value of one’s cash savings should collapse.
The euro, like all paper and digital currencies, is backed by nothing more than the faith in the institution that issues it. Faith in central banks is rapidly evaporating.
Physical gold, on the other hand, is a time-tested and academically proven store of value or safe haven in times of crisis. It will likely be recognised as such by the wider public in the coming months and years.
Must-read guide: 7 Key Gold Must Haves
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,175.00, EUR 1,053.01 and GBP 747.08 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,176.50, EUR 1,060.82 and GBP 749.10 per ounce.
Gold climbed $5.10 or 0.43 percent yesterday to $1.179.20 an ounce. Silver slipped $0.08 or 0.51 percent to $15.72 an ounce.
Gold in U.S. Dollars – 5 Year
Gold in Singapore for immediate delivery ticked lower by 0.3 percent to $1,176.35 an ounce near the end of the day. Gold is on track for a 1 percent decline this month.
Even with Greece just hours from defaulting on its 1.6 billion euro loan from the IMF, safe haven bids for gold are weak. The U.S. dollar gained 0.4 percent against other currencies, while U.S. and Asian stock markets rose.
Greek Prime Minister Alexis Tsipras is calling for a bailout referendum on July 5. The Greek drama is not finished.
In late morning European trading gold is fell 0.20 percent at $1,176.62 an ounce. Silver fell 0.10 percent at $15.71 an ounce and platinum rose 0.19 percent at $1,079.00 an ounce.
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Holding precious metals have become counter intuitive as of late. It is a self fulfilling prophesy that has taken root in the West, primarily North America but ignored i9n the East.
I will keep the bulk of my savings in specie until we see a meaningful monetary reform. I don't expect reform to be voluntary as the current system is the foundation upon which all power of the establishment rests.
As long as things go on it makes it quite easy to decide where to put my disposable income every pay day.
"Greece Shows Importance of Gold as Europeans Buy Coins and Bars"
WOW !!!
Yes, I can see this INFINITELY repeated propaganda reflected in the market price for gold.
Greece is defaulting and threatening the entire EU/EZ regime, Puerto Rico has announced that they will not make debt payments, China's stock market is meteoring down to crater, etc, etc
AND GOLD IS SELLING OFF !
The gold fanatics are just as fucked up as the regime fiat fanatics and the wall street equity fanatics, ie the shit that they are peddling is ALWAYS what you MUST buy.
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The Metals are not "selling off"; they are respecting well-established bottom prices in their markets. Basically t he name of the game is "Futures"; not "Presents"; it's all about the most probably outcome withint a practical t ime frame. When Silver was ready to begin it's massive rise from $4.35 / interday- to over $40, (where it was obviously over-bought); this wonderful bull market anounced itself by the price declining. $5 had looked a pretty good bottom for Silver, but before the great bull market, first the market violated that bottom, significantly, and you could buy silver in 2001 for $4.35/ oz.; again for a few days, after the price had already been down around $4.35 / ox. in 2000. If you wish to understand any subject, you must study it. According to the best estimates of the US dollar purchasing price Silver is either fairly priced at 15.$/ and change; or somewhat underpriced. As the buying power of the dollar decreases, (and all major currencies); this "price", which is merely the price of dollars measured in Silver, will increase. As, and when, various startling and amazing things hanppen to shatter the mass-peoples faith in the delusion of the stock market and the Bond Market, the price will multiply many times. If a new currency is created; it will have a high value in the new currency. This is the future. This is why you put your savings in Real Metal; and not in promises of politicians. Of course, the advertising is annoying; and yes, they are shills for their market; but despite themselves, they happen to be right. They are encouraging you to do the thing that will actually work.
Model T
Most excellent!
Thank You!
This item states that the European Central Bank has "reneged" on its responsibility of lender of last resort. This statement is utter nonsense. The ECB has responsibility to all its member central banks to not give away their money to someone who refuses to pay it back. That is elementary logic. The ECB is already at risk of losing the voluminous advances it has made to Greek banks to meet depositor withdrawals. To lend more under such circumstances would be totally foolish and violate its fiduciary duty.
How can this possibly be? Everyone knows that metals are only for the barbarians and that paper, or even better, digital money is the good stuff. This'll make it harder to manipulate the market if they start having anything like a real panic.....
3X demand - that's why the price is down?
I'm sure the CFTC will be looking in to this!
Well ... there goes au and ag price support today. Yesterday's action prefigured violation to the downside. Stand by because this is no dip to buy. We are going below all-in mining costs and who knows how long it will stay or be kept there. Sell if you have to, otherwise do nothing.
No price support was violate today; on the contrary; both Silver and Gold exhibited excellent bounces off the temporary inter-day lows. The low for the year is in for Silver, already; so say I.