Will the Greek economic collapse cause investors to seek an alternative store of wealth?
*Bloomberg, by Eddie Van Der Walt, June 29, 2015
”European investors are increasing purchases of gold as Greece’s turmoil boosts the appeal for an alternative to the euro.
Demand from Greek customers for Sovereign gold coins was double the five-month average in June, the U.K. Royal Mint said in an e-mailed statement. CoinInvest.com, an online retailer, said sales on Saturday and Sunday were the highest since Cyprus limited cash withdrawals in 2013, driven by a jump in German, French and Greek buyers.
Investors are searching for a safe haven after Greece imposed capital controls, closed banks and stopped selling gold coins to the public until at least July 6. Chancellor Angela Merkel on Monday said Germany is still open to negotiations if Greece wants.
‘Most of our common gold coins are sold out,’ Daniel Marburger, a director of Frankfurt-based CoinInvest.com, said by phone. ‘When people learned that the Greek banks will be closed, they started to think that it may not be such a bad idea to have some money in gold.’ ”
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