Tuesday, June 21, 2011

Greeks Rush to Gold

In an effort to protect themselves from from the collapse of their banks and government, Greeks are rushing to the only money that governments can't mess with, gold.

Greek citizens are emptying savings accounts and buying gold as they brace themselves for the possibility of a sovereign default and runs on the country’s banks, FT reports.


Sales of gold coins have soared as savers seek a safer and fungible source of value. “When the global financial crisis started, our sales of coins to investors overtook bullion for the first time,” said Harry Krinakis, at Sepheriades, a Greek precious metals trader. “Now the sales ratio has reached five to one.”


Monthly bank withdrawals were running at €1.5bn-€2bn ($2.2bn-$2.9bn) in the first quarter. Last year, depositors withdrew €30bn from Greek banks, equivalent to 12.3 per cent of total savings, according to the Greek central bank.

Take notes, this could be the U.S. down the road.

6 comments:

  1. Those dopey Greeks.
    Apparently they haven't gotten the message "you can't eat gold".

    ReplyDelete
  2. "Take notes, this could be the U.S. down the road."

    It's funny, I didn't even begin studying econ until 2007, but I have been buying gold (and, silver) since 2004. I don't know what got me doing this, but I think that spending time in the gold souks in the middle east may have had something to do with it.

    ReplyDelete
  3. Apparently it wasn't just the Greek sovereign debt market that was deluded into thinking there was going to be some non-panicky resolution/soft landing to their financial troubles.

    Ain't no stoppin' the word on the street.

    ReplyDelete
  4. You cant eat paper , , Fiat money .Gold has value ,

    The cost to get Gold out of the mine/ Ground .is the real value of Gold COSTS .

    FIAT PAPER MONEY HAS NO COST VALUE AT ALL , ONLY A PROMISE NOTE .

    Hope that helps .

    Kevin .

    ReplyDelete
  5. go and buy gold...
    you can be your own central bank that doesn't go bankrupt....

    ReplyDelete
  6. The streets of heaven are paved with gold. After you leave here gold becomes equal with asphalt and concrete. Naturally I still own it here to guard my assets...here.

    ReplyDelete