Hindsight Is a Wonderful Thing
Greece is currently suffering the effects of capital controls and whatever your view of the causes of that ancient nation’s current difficulties, our sympathies must extend to the Greek people as they find their daily lives paralysed amid growing uncertainty about the financial security and future of their banks and country.
There are rumours of asset seizures, as happened in Cyprus, from wealthier citizens’ bank accounts and the possible reintroduction of a form of the Drachma.
How would we cope with such a situation?
Because we have an interest in and recognition of the role that Gold can play in our asset management, hopefully, all of our asset value would not be frozen within a vulnerable banking system!
For cautious Greek citizens, the transfer of their cash assets into physical Gold in sufficient quantity to reduce their bank account levels below the estimated €8000 Euro limit (when they would become liable to seizure or ‘taxation’) would have been the first essential step.
We are yet to see how this Greek Tragedy plays out. A break from the Euro, a reintroduction of a Sovereign Currency or even a refinancing deal with creditors and continuation with the Euro would all be far less painful for individuals holding a substantial part of their wealth in precious metal bullion that could be liquidated at the end of the crisis.
Precious metals, particularly Gold Bars and Gold Coins may not be a source of return for investors but they have been proven time and again through history to be a crucial hedge and store of wealth in financial crisis.
Hindsight is a wonderful thing!
Let us hope that we are never in the position to say, “If only we had bought Gold when we had the opportunity.”
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