The Portuguese Run Out Of Gold To Sell

Tyler Durden's picture

"Business has gone from great to terrible in a matter of months. The sad truth is that most of my clients have already sold all of their gold rings," is anecdotal evidence of a growing trend that Bloomberg reports in Portugal. Historically the home of Europe's biggest relative gold reserves, cash-for-gold shops rose 29% in 2011 (average 2 store openings per day) - but now some are closing. Portugal’s gold exports increased by more than five times to 519.4 million euros last year from 102.1 million euros in 2009, according to data published on the Lisbon-based National Statistics Institute’s website.

As a country, Portugal traditionally has guarded that gold. The central bank holds more gold relative to the size of the country’s economy than any euro country, mostly accumulated during former dictator Antonio de Oliveira Salazar’s 36 years in power, based on data compiled by the World Gold Council. The law prevents proceeds from selling any gold reserves from going toward the government’s budget.

With the Portuguese unemployment rate at a euro-era record of 15 percent in the second quarter, citizens are wondering who will help bail them out now that their job and gold are gone: "We have no more gold to save us from being kicked out this month," encapsulates a growing trend in debt crisis-stricken Europe as household gold supplies dry up after record prices and a deepening recession prompts a proliferation of places to exchange the metal for money.


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WALLST8MY8BALL's picture

Let me guess. Corzine was managing it

Scalaris's picture

Onto the silver then.

midtowng's picture

If the working class gets completely seperated from precious metals first, only then will we go back to a precious metals backed currency.

Seize Mars's picture

Tired of poverty, unemployment, ruin?

End fiat money.

It's that simple.

CH1's picture

Do NOT wait for permission to leave fiat, just walk away.

Lots of non-fiat currencies exist already. Use them.

Permission will not be forthcoming.

Manthong's picture



If it gets that bad for you..

1.    Own your vehicle (preferably 4WD), free and clear.

2.    Sell everything but PM's, firearms, clothes on your back, portable DVD player and a few DVD's

3.    Hit the road and live carefree.

Recommended DVDs for Living on the Road


Precious's picture

2.5. Return wife to parents' house.

CH1's picture

If it gets that bad for you..

Actually, life can be a lot better off the grid. Business is certainly a lot cleaner. It's also a lot more fun, not having to report to massa.

GeezerGeek's picture

 You forget - the strangulation imposed by government regulation must also be withdrawn. Simply replacing fiat with real money is not sufficient by itself.

Example: you could have all the money in the world, and if the bozos at Building & Zoning wouldn't give you a permit, you still couldn't build anything. You'd have to follow in Sonny Bono's footsteps to eventually build what you wanted.

deez nutz's picture

Onto the silver then.

then soybeans and corn!!

Its the Vatican Stupid's picture

Strangely, there has been a rash of "Tail 4 Gold" outlets opening up all over Lisbon recently.


fonzannoon's picture

Tyler(s) I hope you have a field day with John Cusack jumping in against PIMCO in this eminant domain thing. All the ingredients are there. Do your magic.

Quinvarius's picture

I don't think dude's clients selling their rings as ever going to save the country.

Quinvarius's picture

You should never sell any gold unless we are on a gold standard.  There is no amount of endlessly printed colored cocktail napkins that you should trade your real money for until they are backed by gold.

EnslavethechildrenforBen's picture

Word. But even then, one could still hold on to the Metals without negative consequence.

MarsInScorpio's picture



Nice theory; lousy reality.


Are you under the impression that these people are selling their personal gold for anything other buying time, praying to survive?


These are desperate people doing desperate things to keep a roof over their head and food on the table.


Think about it: How desperate do you have to be to sell your wedding rings? Ask your significant other to get a reality-check.


My heart really goes out to these people. They are being crushed by the Ultra-Rich and their financial-services whores.


I really thought that this generation would not allow this situation to go this far, but obviously I'm wrong. I can't for the life of me understand how the First World peoples can allow themselves to get raped so badly, and not react by tearing the Ultra-Rich from their estates, and hanging them along with the Draghis and Montis, and Bernankes, and Little Timmys of the world who sold them out.


I don't understand why there have not been actions taken against GS, JPM, MS, Citi - and the rest of their criminal culture - not by the sold-out government of course - and not by the useful idiots in law enforcement who for the sake of their ego power-trip dutifully serve their Ultra-Rich patrons, all the while killing off their own futures along with the rest of what's left of the Middle Class.


No, I thought that there would come a point when the First World's populations would turn to violent actions. I'm amazed Jon Corzine is still alive - although no doubt in hiding on some mega-estate in Palm Beach or in Europe - or maybe even Russia as a sidekick of Putin.


Dimon, et. al. are still walking around - even the Enron criminals who at least did some jail time haven't been gunned down or blown up by the people they destroyed.


Maybe I should accept that the Ultra-Rich got their dumbed-down education plan in place in time to save themselves. Maybe all it takes is porn, dope, and alcohol to keep a modern population in check.


In November, some people think Romney and Ryan will make a difference. IMO, the only change that might occur will be that the Black Racists will get run out of the Just Us Dept.


Outside of that, nothing will change - the system is totally criminalized - the inmates have taken over not just the asylum, but the entire governments of every First, Second, and Third World country out there. The Ultra-Rich takeover, and the drugging out of the populations is successfully complete.


What then will it take?


There will come a point when there isn't enough for the Ultra-Rich to steal from others. Then they will have to turn on each other.


There will be a culling of the Elite. They will murder each other off. The coming Middle East Final Act War between the Israelis and the Arabs is the forum where it will all begin.


I fully expect the use of nuclear warheads to take out the Iranian arms factories. My understanding is that they are in mountains, and the only way you're going to get to them is with nuclear warheads.


The IDF Navy has already positioned its submarines off the Iranian coast. They are known to carry cruise missiles, courtesy of the German shipyards that built them. They will launch an overwhelming first strike that will be true Shock and Awe.


There will be little left for Iran to use to retaliate.


But the story won't end there. Russia and China are not about to see the Israelis take out all of their allies in the Middle East - these are critical to their national security. For Russia, it is the toehold to the Med, for the Chinese, it is the pipeline to oil.


Well, so there is the future for us, our kids, and our future generations.




And when you get right down to it, there is nothing you can do to change it.


If you could, you wouldn't be here.


Monedas's picture

That's where China got it ?          When I got back from the Nam, an Altadena cemetery got in trouble because their employees were harvesting dental gold from the cadavers on the stainless steel tables !   The employees referred to the extraction as "Popping Jaws" !           Monedas     1929       Comedy Jihad Central

i-dog's picture

The muppets just love being muppets! ... shepherded by the media into their local Kash4gold kleptokrat kollektor.

So.... the Central Bank is still holding all its gold and the people have given all theirs up! Barbarous relic, indeed! ... only the barbarians in the banking system understand its value (though, to be fair, the people have probably already sold their iCrap on eBay and are now down to liquidating their gold and pets).

Doubleguns's picture

Pets....would that be the pussy?

queen mama's picture

Former French president Sarkozy sold 2 years ago 600 tons of gold. He was the opposite of Charles de Gaulle,...It was really a shame.

in think European countries sold their soul

ammo42's picture

Sarkozy's interested only into his cronies, in addition to lecturing people like an uppity ADD prick. Nothing's new here. The only reason he won the 2007 election that he had no real opponent from the PS (Socialist Party), and that his "opponent" had still enough votes to kick Bayrou out of the second turn.

EasterBunny's picture

So, they still own their gold, right? Isnt this the same gold that was rumoured to have been swapped with the ECB, to raise cash? If so, this means they have to come up with the cash to get their gold back...

Alpacanio's picture

Watch out, next will be gold teeth...

vato poco's picture

Uh, no, "next" will be wives, sisters, & daughters - just like has always been the case.

bankruptcylawyer's picture

all politics are local is code for all politics is bribery. 

dingoj's picture

First they took away his job

then they took away his gold

then they took away his roof

Draghi & Co., out to save the EUR,

over the last living Portuguese

Zero Debt's picture

Cash 4 gold = confiscation

Dapper Dan's picture

OT. This could be BS but it is intriguing none the less.

World News Israelis call on pilots to disobey orders (0) | | | Published: Aug. 16, 2012 at 7:51 AM

JERUSALEM, Aug. 16 (UPI) -- Hundreds of Israelis have signed an online petition, urging Israel air force pilots to disobey orders if instructed to bomb Iran, officials said.

The petition, signed by more than 400 people, comes amid rising speculation an Israeli attack on Iran's nuclear sites is imminent, The Times of Israel Web site said.

The Physicians for Human Rights sent a letter to Prime Minister Binyamin Netanyahu and Defense Minister Ehud Barak objecting to an attack on Iran, said.

"You are preparing the ground for an attack or offensive, washed out words for the worst word of them all -- war. Such a strike, surgical as it may be, is expected to be followed by all-out war, the price of which, it is claimed, will be paid in hundreds of fatalities," a portion of the letter published by said.

Read more:

Bastiat009's picture

The euro is recovering nicely today. Why do Portuguese complain?

ok seriously, Portugal has been poor for decades. It's not because you pay with Germany's currency that you have Germany's economy. Generations of Portuguese have left Portugal to work in France. Chasing your youth away is not exactly a recipe to be rich, as a country.

Sell your gold, pay off your debt and start producing stuff people are willing to pay for.

smiler03's picture

 ."Sell your gold, pay off your debt"


Portugal Gold Reserves, worth approximately €20 billion

Portugal Foreign Debt approximately €400 billion



Bastiat009's picture

Then keep your gold, don't pay off your debt. Whatever. Portugal is a very small country with a very small economy.

sitenine's picture

"a proliferation of places to 'exchange the metal for money'" Hmm, don't you mean 'exchange money for paper'?

orangegeek's picture

More bullish news.  Markets are up.  Buy Buy Buy!!!

Mr Lennon Hendrix's picture

Funny how all of what this guy said is news to the Bloomberg guy when we have known it for years.

shovelhead's picture

How long will it be before the new urban crimewave is 'grill-jacking'?

Hoards of youts armed with pliers to steal gold teeth.

n8dawg84's picture

Slightly OT,

I read this article yesterday:

The author states that US default is inevitable, but not necessarily default by hyperinflation.   His reasoning is that hyperinflation would only help .gov meet present bills, but the debt of the unfunded liabilities would still remain.  I'm thinking that in a default without hyperinflation, creditors would still seek the gold of the US as collateral, much like the ECB or Germany (not sure which one wants it, maybe both) is seeking the gold of Greece to use as collateral.  Theoretically, that scenario has to be bullish for gold, right? 

EmileLargo's picture

Very plausible. Which means you don't want to own physical onshore in the US. They will confiscate private gold and then use that gold to back the currency to restore confidence.

Yperkeimenos's picture

Oftentimes I’ve heard claims that gold and precious metals in general, have no value because, you can’t buy anything with them or you can’t eat it. It is never explained though that if the value of something was determined by whether you could eat it or not then a loaf of bread should be worth more that a handful of diamonds. Now don’t get me wrong, if we were to find ourselves stranded on a small island somewhere in the middle of nowhere, then yes a loaf of bread would be worth more than all the diamonds in the world, as there would be a survival issue. But since we live in a society where we exchange goods and services on a daily basis, the value of something is not determined only by whether you can eat it but by something else, and that is the labor and time that went into its making. It is a fundamental principle that the more work something needs to be made the higher it value. Gold is rare and therefore takes a lot of Labor and Time to locate, extract and process and all that time consuming, specialized labor is reflected in its value. Gold is not a store of value, as much as it is a store of labor and since it is not affected by time and external conditions, can maintain the value (Labor) stored in it indefinitely, thus allowing receipts (money) that are backed by it to retain their value, because they reflect all the productivity invested in the creation of the underlying asset. Theoretically Money could be backed by anything that takes a lot of Labor to produce but anything else, except precious metals, erodes and in time becomes useless, thus devaluing the currency that it backs. Fiat money has no intrinsic value because all it takes to produce it, is a printing press, cotton and ink, all easily and readily obtainable in huge amounts. Its only value is the convention that Governments accept tax payments in that form which doesn’t sound too reassuring to me. Those who disagree can and should trade their Gold, Diamonds, Jewelry and other valuables for Sacks of Sand.

msjimmied's picture

That's the problem with extend and pretend, coupled with loss of jobs and productivity due to austerity. Too many people will run out of even their last line of defense with PM's. TPTB will outlast most, they can extend the period where more and more gets sucked into the black hole before they hit the reset of their choosing. They can print, they can lie, they can squeeze the people till the bitter end. It will take more than hoping for them to crash to stop this travesty. On a long enough timeline, we'll all reach this end game...

""We have no more gold to save us from being kicked out this month," 



Gavrikon's picture

It is also my fear that I lose my job and have to start selling from my personal stack before the SHTF.