Thoughts on Greek financial problems and precious metals.......

[teddy12b]

The very real possibility of the Greek financial collapse has been hitting the news again. Not trying to argue one way or the other, but if this is the first in a domino effect has it changed your thoughts on precious metals (gold/silver)?

 

[leftsock]

Greece hasn't really changed my thoughts. Precious metal prices are down from the 2011/12/13 years, and these days look like good times to buy. Buy low, sell high.

 

[melensdad]

I am looking to buy $1000 in silver now in Northwest Indiana (Lake/Porter/Newton/Jasper counties)

If anyone has any they want to sell, send me a PM.

I will pay CA$H.

I think the Greek (greed) financial crisis is going to wreak havoc on the Euro and the European economy unless they have figured out some way for an orderly exit ... or the Euro commission has figured out a way to orderly boot them out. Rumor has it that Vladimir Putin is getting ready to jump in to save Greece and prop up a new socialist regime there.

We shall see.

 

[foszoe]

I am buying greek bank stocks.

 

[Sailor]

I am riding the volatility on the EU pairs that this is causing. Silver if it breaks that lower trendline I am targeting 15.625. If it hits 15.2344 expect a 40 pip bounce back up.

 

[JTScribe]

Latest reports are that the Greek banks won't be open this week, and the ATMs are empty. Not entirely against the thought of PMs, but how do you sell them if nobody has cash? Seems to me hoarding cash is important in the near-term as well. I wonder if debit/credit cards will work this week and if businesses will accept them? Could get tough very fast, particularly in Europe where people don't tend to stock up on groceries.

 

[Lex Concord]

Paper notes have several benefits over specie.

They are lighter and therefore easier to carry.

They are pliable, and therefore easier to fold for storage in wallets and pockets of varying size.

They are flammable, and therefore useful in stoking fires.

View attachment 39573

 

[teddy12b]

Not entirely against the thought of PMs, but how do you sell them if nobody has cash?

You're assuming cash has value. If it takes gold & silver or whatever to exchange for food, water, shelter, etc then that's fine. Cash just because it's cash has zero value if it can't be traded.

 

[sloughfoot]

And then there is Puerto Rico. A US territory......

We will wake up one morning to a world we don't recognize. What you have in your possession that moment will be the only thing you own.

 

[JTScribe]

You're assuming cash has value. If it takes gold & silver or whatever to exchange for food, water, shelter, etc then that's fine. Cash just because it's cash has zero value if it can't be traded.

Yes, but right now, if you're in Greece with no cash and a hoard of PMs, one is presumably screwed at least in the short term. So isn't it better to diversify?

 

[teddy12b]

Yes, but right now, if you're in Greece with no cash and a hoard of PMs, one is presumably screwed at least in the short term. So isn't it better to diversify?

If you were in greece and needed some groceries do you think you'd have better luck and the local Mom & Pop shop with a handful of cash that's soon to be worthless or already is, or do you think they might recognize that a bar of silver or gold has been and always will be "worth something".

I'll be the first to say that people should have food, water, shelter, medical, skills, etc first. At some point though, pm's have a place.

 

[Leadeye]

The euros won't be worthless, it's what comes next when the Greek's government prints it's own currency with an "official" exchange rate for euros that you'll see worthless currency. That's why people are lining up at the bank, to get euros before they have whatever foisted on them by the government. In it's effort to print it's way out of debt, the government will end up screwing over it's own citizens. Always follow the money.

 

[JTScribe]

Yeah if nothing else you'd think Euros would hold their value especially if they reintroduce the drachma. Although if Greek beings printing their own Euros (they have the systems IIRC) all bets are off. Probably a different situation than it would be here if the dollar crashed. In that case yeah I'd want some precious metals, although I'd want them in smaller denominations than a bar. Hard to make change when you're buying a cart of groceries.

 

[dibdee83]

You're assuming cash has value. If it takes gold & silver or whatever to exchange for food, water, shelter, etc then that's fine. Cash just because it's cash has zero value if it can't be traded.

Good point, Ive recently thought about buying gold and came to your reasoning.

 

[teddy12b]

I didn't think of the greek people getting euro's out of the ATM as an option. It makes sense though. I'll be the first to admit that I don't have much of an understanding of the greek financial system other than they're broke and about to default. From my point of view this will make an interesting case study going forward in the future. I don't have financial ties to greece, but it's impact will be felt in some way or another.

My concerns with this have more of a selfish focus. How would I handle this situation if it happened here. If/when the US dollar defaults and nobody values the myth any more will I have better luck trying to barter with a handful of cash, or would I be better off with a handful of silver or gold. Either way it's not a pretty situation.

 

[prescut]

I read that there was a 2010 EU bailout of over $340 billion. Most of it went to pay the banks for the loans they gave to Greek government. That's taking private debt (the banks) and making it public debt. Not the route to take.

I always have a hoard of old junk silver coins I got off ebay over a couple of years. Recognizable, no assay, small denominations. Silver is getting hammered right now June 2015. Good time to buy.

 

[rhino]

I didn't think of the greek people getting euro's out of the ATM as an option. It makes sense though. I'll be the first to admit that I don't have much of an understanding of the greek financial system other than they're broke and about to default. From my point of view this will make an interesting case study going forward in the future. I don't have financial ties to greece, but it's impact will be felt in some way or another.

Apparently, neither do the Greeks who are running it.

 

[teddy12b]

Apparently, neither do the Greeks who are running it.

LOL, yeah I don't feel too bad about it because I know there's a whole country of them in the same boat.

 

[rhino]

LOL, yeah I don't feel too bad about it because I know there's a whole country of them in the same boat.

The thing that gets me is this: they are demonstrating (yet again) that you can't get something for nothing, yet they will continue to try to do it. Other countries with similar systems will do the same.

 

[Slawburger]

They just need to redistribute more...