Cyprus Deposit Tax: Could This Start A Rush To Hard Assets?

The Cyprus deposit theft did start a rush to hard assets
In Your Hands that is.
4 million ounces flying out the CRIMEX vaults or 10%
of total inventory diminished in 48 hours...
That should move the spot price at least 50 cents ? ...right...

Peel away the emotion and look at this rationally. Cyprus is a 20 billion dollar problem. Thats not enough to cause much of an immediate shock. However, when you look at this purely from a risk reward situation, are you perhaps better off with securities taking risk which is priced in the market or the unforeseen risk that is no longer latent of a bank deposit? Will this boost the eurozone in time for the election? I think so. Thats why this is likely, at least for the immediate future, a one-off event. This was an act of political desperation, not economic.

Today was the most bullish event I have witnessed in gold in a long time. If you are bullish then you should be a big buyer right here. Even if you are bearish you'd be a fool not to cover.

bitcoin crashing some more as well

Sounded like they had actual PM in the news article. I have read that many of the PIIGS have gold holdings so I don't know why, if true, the sale of the PM doens't have to take place prior to a bail out. I am a little confused on that point, again if true.

But if they think its going way down or deemed it to risky now theyll take their money and put it elsewhere, especially if they need it

gold is now oversold and a strong buy.

I think the article is just as bad as the ones it complains about. Gold while more liquid than any other commodity, is not anywhere as liquid as a market for a major currency in both real and notional terms. Its not gold that is volitile, its global currencies and thats actualy going to prove to be much worse for other markets as a currency war is well underway.

Sooooo, you either understand that gold is really not money as most people understand money or you don't Its not currency and frankly it never really was. It is a unit of account of a reserve asset. Its certainly not an investment as there is nothing to gain, nothing to lose. Not currency in terms of today, but tommorow which is why gold currency for lack of a better term is difficult to value in the present. Gold does not work as currency, but functions remarkably as long term capital storage. People have to make their own decisions about how much they are going to live in and bet on the present vs. the future.

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