Gold last reported p.m. is $1231.60 up $3.70 and Silver is $17.35 up 1 cent. Media is reporting that Greece walked out of ECB talks today stating it is absurd and unacceptable to stick with the terms of its original bailout agreement. The European Central Bank may offer Greece emergency funding through its Emergency Liquidity Assistance program if Greece is committed to implementing fiscal reforms. Without funding Greece will either walk out or be thrown out of the EU. If this happens look for Italy, Portugal, Spain and others to jump in demanding debt forgiveness as well. Greece is a time bomb with a lit fuse.
The ECB has already given Greece 65 billion in emergency funding and unless a compromise is reached Greek banks will lose guarantees and emergency assistance at the end of the month. Regardless of the actions taken by Greece they will continue facing bankruptcy as the ecofnomy is lifeless. Any new deal offered Greece must be ratified in at least six national parliaments and this may prove difficult as anger from member nations intensifies against them. Spanish finance minister Louis de Guindos summed it up this way. “Our red line is loans must be paid back in full. Rules must be respected”.
Hans Michelbach, a senior lawmaker from Angela Merkel’s Christian Union Block in parliament said payments to Greece must be stopped immediately and money kept as collateral to secure Greek debt payments. Germany doesn’t want Greece to leave the Euro before it can and growing turmoil will almost guarantee Germany not to see its gold repatriated supposedly being held in New York, London and France any time soon. Germany played poker by joining the EU and unfortunately they were the only nation with sound monetary policies. What’s worse is Germany knew this going in. The contagion is spreading and it’s going to grow as the EU experiment unravels.
The Central Bank of Greece is denying reports that demand for gold coins has increased but a spokesperson at the Royal UK Mint said there was definitely an uptick in demand for gold and other precious metals from Greek buyers. According to Greek Central Bank numbers it sold almost 5,900 Gold British Sovereigns in January while it sold only 7,587 gold coins in the fourth quarter of 2014. Taking these figures into consideration Greek retail demand is sky rocketing around 122 percent. Interestingly the central bank hasn’t noticed.
We are witnessing what takes place when nations foolishly live on debt. Math is not a respecter of persons or nations and it assures us that even the U.S. is in grave danger of bankruptcy. We are the largest debtor nation in the world with a growing debt of 18 plus trillion that cannot be repaid. Central banks can and will continue printing money but they cannot forestall inevitable calamity. Investors trusting in fiat currencies and debt ridden stock markets are in no better position than Germany is with the EU. If it sound too good to be true, it probably is.
Now is the time to protect a portion of our wealth and there’s no better way to do it than owning physical gold and silver. We are still offering the 1 oz. Silver Canadian Maple Leaf and the 1 oz. Silver American Eagle below production costs. These coins are also available for a Gold IRA as well.
Call us with any questions you may have concerning owning precious metals. 1-800-577-3195
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