Thread: Gold Buying
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Old 26.08.2015, 13:32
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Re: Gold Buying

Yes, Greece has that scheme. Cyprus too. So does France, Italy and the UK.

The guarantee is only as good as the guarantor. Most of these schemes claim to guarantee your deposit but if you look how much money they hold, it doesn't even cover a single-digit percentage of total deposits, in effect making it useless for a systemic bank run.

Those are only good if one bank goes bust in times of the economy going well. For example if the Co-Op bank in the UK tomorrow bites the bullet, then this scheme will cover everyone.

If there's a new crisis and depositors lose confidence in the UK banks and a bank run starts happening, then those schemes won't even cover the bus fare for everyone that runs to the bank.

Gold is money, pure and simple. No counterparty involved. Of course it has its own disadvantages: storage costs, no dividends, no growth etc but there is a bear market coming and whatever money could be made from the stock exchange are already made. The new crisis that is coming will dwarf the one of 2008.

You'd want to have at least some gold when that happens.
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