Cyprus bailout = money shift to tangible assets (gold, silver, etc...)

This was out of necessity. Britain's debt/GDP is even far worse than Japan's. They would have a real tough time servicing their debt if they ceded monetary control to the ECB, but they did promote the agenda. Shared monetary control is the problem in the first place, secondary to the debt accumulation of course. Otherwise nations like Greece, Italy, and Cyprus could inflate their debt away like others instead of going through austerity measures and now blatant theft.

London is the only city in the world where rehypothecation has no lawful boundaries, hence the huge green bar. I don't think it's a coincidence that this is where most major frauds have occurred; Bear Stearns, AIG, MF Global, the London Gold Pool, et al.

 

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I have one of these:


Will I soon be able to spend it in a shop there? HOW SOON lol

http://www.guardian.co.uk/world/2013/mar/19/cyprus-rejects-eurozone-bailout-savings-tax

I know it's blatantly political to say, but does anyone else find Kremlin whinging about "forceful expropriation" from gazillionaire oligarchs, ohhhhh, abit ridiculous???!
Soviet history, friends, is all about expropriation. Here's grain coming out of a peasant's root cellar:

 

Well, there you have it. They were going to raid bank accounts, but precious metals didn't even budge.

 

"....precious metals didn't even budge."

Sodude-
I'm not so sure. Tiny Cyprus wouldn't be a tipping point (for PMs, globally) but I'd like to see recent PM premiums in Limassol and other towns, charted.
LOCAL prices for PMs could tell us more, what a PM demand surge might look like against the Euro or another major I suppose. ANY Cyprus residents on board??

On another issue:

http://blogs.barrons.com/focusonfunds/2013/03/19/gold-price-withstands-etf-outflows-commerbank/

I'm puzzled by the subtext of the Commerzbank analysts' recent note:
"Evidently the ETF outflows are being offset by strong physical demand elsewhere. In our opinion, the gold price should continue to gain ground."

1) ETFs are no longer the 'be-all &end-all' to POG?
2) There's a mysterious bullion demand we're not fully apppraising, here?
3) The divergence between Paper Gold and bullion has begun?
4) ... other ???

 

Actually I have no idea why the UK insisted on getting into the EEC 40 years ago, and were one of the founding members of the EU (qua Maastricht), but I fully support the Brexit. Unfortunately no British government has done us that favor so far.

Christian

 

Here is a little different take on virtual confiscation:

Consumer Financial Protection Bureau Sets Sights on Retirement Accounts - SilverDoctors.com​

February 2, 2013

EDITED. Cut/paste from copyrighted website material. This is not allowed. Please read Peter's thread on possible legal actions.

================

I don't have an IRA, so I don't have any opinion on this strategy. I just mention it as part of the ongoing train wreck.
​

 

I have to admit Davey I think you are giving a little too much credit to the UK. The UK is now where near the economy of Germany. It is on their backs, (on the backs of all of the northern European countries actually), to pay for the Euro.

I always wondered why they didn't start the Euro smaller, then expanding after a couple of decades. I always wondered about the decision to put the southern European countries in the Euro, especially Portugal and Greece, but also Spain and Italy. Cumulatively they do not have a great track record of fiscal conservatism like their northern neighbors. To me, Germany was handicapping themselves from the beginning by tieing themselves to southern Europe.

 

Thereby depriving their citizens of 100% of their money rather than the 10% or less the EU wanted. Yes I know they will get it eventually, but that isn't going to help them in the mean time.

 

Well the EEC was not bad back then, now the EU is trying to stipulate what laws we can have and unelected unknowns in Brussels are causing mayhem with our industry and fishing rules.
It has never signed off its accounts, ever , it is corrupt.
We have been promised a referendum if we should stay or go, but the way the Euro is going we might not have to make that decision.

 

The expats have been advised to switch their designated bank accounts online to continue receiving payments. there are British banks in Cyprus.
A military plane flew out yesterday with a €1 million on board to loan to troops whose cash might be tied up.

 

Hypocritical maybe, but ridiculous? Not a chance. Theft is theft. A thief doesn't like to be stolen from just like everybody else.

 

If the Eurozone devolves, the "confiscation" (on hundreds of millions of small account holders) would be HUGE. But rocketing bullion prices might be (mostly) localized to the eurozone.

WATCH PREMIUMS.

THAT event might spark the ultimate or penultimate Investor Death Spike in PMs, YES. (I don't imagine that happening for several more years, IF.) Selling half your stash (for something undervalued) when Gold hits € POG 4x or whatever stratospheric # suddenly would be prudent ... don't cling to PMs forever and ever! The downside is always a shocker, too.

In the event of a Euro collapse, for EU peeps without offshore accts:
I suppose buying best quality ART and antiques might be an appropriate alternative, if PMs there become super scarce/pricey. I looked at the stunning portfolio of a young EU artist this weekend - he's part of the brain-drain, fleeing Spain - and his art commands solid prices in Berlin and London. His painting are CHEAP! Admittedly, that's a risky asset and one I do NOT have any expertise, but still... your studying other alternative 'freak haven' investments NOW might pay off, if you need to fast-hedge in the future.

 

Excellent news. Took the British government extremely long, and so far I have read only vague announcements. But if the British finally have a choice and then get out, good.

Umm, a British referendum would be about the UK staying in, or getting out of, the European Union, not about the euro. As for those "unelected unknowns", sure, I for example could not vote when you elected your government. And the same applies the other way round. Then again, I have no vote when there are elections in a German state other than the one where I live. Seems pretty normal to me.

Christian

 

The unelected unknowns are in the European commission, faceless bureaucrats making rules up
to justify their own positions.
I never voted to enter the EEC but I will sure vote to exit the EU, it has never done me any good or given me anything but high taxes
If the Euro collapses the EU won`t be far behind, if they can`t manage a unified currency then there is not much else they can do either.

 

The EEC and then EU has also been about a common currency for a few decades, see e.g. the Werner Plan from the early 1970s. The Maastricht Treaty (effective 1993) not only founded the European Union but also had provisions regarding the currency union. Back then, Denmark and the UK first said No, then got their "opt-out". Today the Danish krone is in the Exchange Rate Mechanism (ERM-II) with a minuscule fluctuation band; the British pound has nothing to do with the euro. All other member states are basically (hmm, theoretically ) required to join the currency union once they meet the convergence criteria. Trying to force them in would be silly though, so there are many ways, for a country that wants to stay out, to stay out.

By the way, Greece was not among the "initial eleven" but joined the currency union two years later, in Jan 2001. And while I find it ridiculous how some in Greece, Cyprus and the UK try and demonize the German government now, we should not forget that a few years ago France and Germany were among the first countries that insisted on interpreting the stability criteria a little more flexibly ...

Christian

 

It would be localized to the Eurozone at first since the USD would get the safe haven appeal bump from those who don't realize they should be in metals instead. The USD is still a currency from a nation that has no intention or ability to pay down its debt, and all fiat currencies will eventually follow the same fate.

Any death spike in PMs would be due to a paper selloff such as in 2008, and the subsequent demand would all but ensure a physical shortage. If the powers want to go this route it will be the undoing of their ability to control markets. Not a smart move unless they are ready for end game.

I do have to commend for that comment Juan. You have finally come clean as the paper bug you are, thank you for being honest, but shame on you for suggesting people sell half of their stack into a scenario where the very infrastructure of the financial system would be shaken. Sure you could turn a profit in devaluing currency and buy back in paper contracts, but for physical holders that would be a very foolish move as more and more people realize they need the actual metal.

 

Oh dear, has some election campaign just begun in your country? Well, the Commission basically executes what the Council decides and the Parliament agrees to. Of course it tries to maximize its influence, like most other administrative bodies. Here in Germany for example many bills at the federal level (legislative drafts) do not come from the Bundestag/parliament but from the ministeries. From "faceless bureaucrats" as you would put it ...

Side note: The European Commission (ie. its president and the commissioners) is suggested by the European Council and elected by the European Parliament.

Christian

 

It will come to the USA....just a matter of time.

 

Maybe not much longer. Read about the proposal to force treasury purchases of ira and 401K money?

 

Latest development, Cyprus will be taking up to 40% of savings from both depositors and bondholders on funds in excess of the insured amount of 100,000. Banks closed "until further notice".

http://www.bloomberg.com/news/2013-03-25/cyprus-to-chop-banking-system-to-win-aid-avoid-default.html