Greeks would buy gold?

[Peter]

There was agreement that the probability of Greece adopting a new currency had increased, as per my column of this morning. However those attending still believe that some kind of compromise between Athens and other eurozone governments can be reached to keep Greece in the euro.

David Cameron heard that Greek people would see their savings wiped out, inflation would take off, and there would be a massive devaluation,

He was also told that Greek companies and banks would face acute financial difficulties because of the mismatch between the "hard" euros they would owe to those outside Greece which would have to be serviced out of "soft" or "devaluing" new drachmas.

So any British businesses and banks owed money by

Bbc news
...

If I was greek I'd be buying gold.

 

[Jislizard]

...

If I was Greek I'd be buying gold.

And you would be paying through the nose for it.

Last time the Greeks had to run for gold was around the time of the Cyprus bail-ins and if I remember correctly the premiums on a sovereign were 70%.


This article from 2010 has them paying 40% premiums. http://www.zerohedge.com/article/greek-scramble-physical-brings-gold-price-1700-ounce

 

[finicky]

UK planning for possible Greece exit from the eurozone

9 February 2015
Robert Peston, economics editor

 

[TreasureHunter]

They'd definitely buy. The gold sales were up a few years ago.

If they exit the eurozone, they will have a terribly weak new currency. Or, it will devalue from day to day...

Besides, the euro is doomed too (CHF-EUR issue and losing vs. the USD).

 

[Peter]

FMaybe the whole eurozone will buy gold.
Or other currencies.
Those that have will be gaining as euro falls against usd.
Is this why usd is rising.

 

[JulieW]

I think anyone with a spare Euro has moved it away from Greece years ago, or there are some very full mattresses.

I saw something predicting Euro to US 90 cents. There's always an over correction so that brings the Euro to parity.

Germany's excuses to leave are multiplying.

 

[phrenzy]

A new devalued currency would mean lower ppp incomes and much higher employment. Greece has traditionally been a fairly poor country but being super competitive currency wise could be a real shot in the arm for the economy as long as people were willing to accept that they couldn't afford iPhones anymore.

There must be some Greek bullion dealers waiting with baited breath. You'd have to think though that with the proliferation of online bullion stores plenty of people would find ways of getting reasonable priced bullion during the changeover.

 

[Phiber]

Who will want their new currency should they exit the euro? No one will touch it, it'll devalue instantly. How would they even import anything in drachmas? Don't see it happening and it's not like they are self sufficient.

 

[JulieW]

They'll make a deal with Russia to use the Rubble - oops the Rouble.

 

[Kam]

If I was greek I'd be buying gold.

Already happening: http://www.bloomberg.com/news/artic...-buying-more-gold-coins-from-u-k-s-royal-mint

 

[Argentum]

I saw something predicting Euro to US 90 cents. There's always an over correction so that brings the Euro to parity.

Germany's excuses to leave are multiplying.

i think Germany gets the best so far of both worlds, their economy doing really good would strengthen their currency and therefore make their products more expensive and slow sales down but because everyone else in eu is doing so poorly the euro stays low so they keep exporting loads of Benz-es, BMWs and VWs. So I think they love the hype about Greece as it slides euro even lower. As long as they dont pay for Greece or any other country's debts they wont leave (ze Germans i mean)