Greek citizens withdrawing savings and buying gold
As we note in our piece about India’s surging gold imports that gold demand is a real global phenomenon, we get news that Greeks are withdrawing their savings to buy gold.
There is a growing fear in Greece that the economic path the country is on is simple unsustainable and that a default is only a matter of time. This has let to many in Greece to close their savings accounts and buy gold in an attempt to pre-empt any possible bank runs.
Harry Krinakis, a Greek precious metals trader noted:
When the global financial crisis started, our sales of coins to investors overtook bullion for the first time…Now the sales ratio has reached five to one.
For the first three months of this year up to €2bn has been withdrawn from Greek banks. This is on top of €30bn being taken out of accounts last year. That represents over 12% of all the savings in Greece.
As well as moving into gold Greeks are moving their money out of the country. A popular destination had been Cyprus until fears about the spill over effect of a Greek default there. And for those with more money Switzerland is also a popular choice.
Even though the Greek PM George Papandreou won his confidence vote this week there is still the small matter of the parliamentary vote on tough austerity measures to be pushed through next Tuesday. Read a full time-table for all things Greek here.
It is becoming clear that the public are becoming more and more aware of the option to buy gold to protect their wealth all around the world. And with uncertainly around European debt and US solvency likely to become more pronounced in the coming months look for this trend of citizens buying gold to continue.
Link to this article: : http://www.goldmadesimplenews.com/gold/greek-citizens-withdrawing-savings-and-buying-gold-4344/