Global Deposit Confiscation Called For By Influential CEO Of Italy's Largest Bank

Global Deposit Confiscation Called For By Influential CEO Of Italy's Largest Bank



Today’s (6th April 13) AM fix was USD 1,552.75, EUR 1,201.35 and GBP 1,019.60 per ounce.
Yesterday’s AM fix was USD 1,545.25, EUR 1,207.42 and GBP 1,025,65 per ounce.

Gold fell $4.90 or 0.31% to $1,553.10/oz and silver fell 10 cents or 0.37% to $26.87/oz on the COMEX yesterday.


Cross Currencies Table – Bloomberg

Gold is higher in most currencies today except the Japanese yen. Gold
surged over 3% to 0.149 million yen per ounce yesterday as markets
shuddered due to the scale of currency debasement soon to be seen in
Japan.

While the Nikkei has surged as expected, Japanese 10 year bonds sold
off sharply with yields spiking from the all time record lows of 0.334%
to over 0.6%.

The risks of a bond market crisis or currency crisis in Japan is
something we have long warned of. The risk is now very high and hence
strong demand for gold bullion in Japan with Reuters quoting sources in
Japan who said that "the general public is buying."

Billionaire investor George Soros and Bill Gross, who runs the
world’s biggest bond fund, said the Bank of Japan’s currency debasement
risks weakening the yen. Indeed, Soros has warned of a currency
"avalance".

“If the yen starts to fall, which it has done, and people in Japan
realize that it’s liable to continue and want to put their money abroad,
then the fall may become like an avalanche,” Soros said today in an
interview on CNBC.

An interesting development in the precious metals market is the
largest Dutch bank, ABN Amro, has said that they will no longer be
providing physical delivery of precious metals including gold, silver,
platinum, and palladium bullion coins and bars.

ABN AMRO, one of the largest banks in Europe announced in a letter to
clients that it would no longer allow clients to take delivery of their
metal and instead will pay account holders in a paper currency
equivalent to the current spot value of the precious metal.

Thus, instead of legally owning a risk free, physical asset (a
bullion bar or a bullion coin), the bank’s clients are now unsecured
creditors and are now exposed to the bank and the financial system –
somewhat defeating the purpose of owning precious metals.

The move highlights the importance of owning physical bullion either
in your possession (be that be in a safe or vault in a house, in the
attic, under the floorboards or elsewhere in your possession) or in a
secure vault in a country that is stable and respects property rights.


Gold in USD (3 Year) – Bloomberg

Gold is again testing long term support at the $1,540/oz level and at the €1,200/oz and £1,000/oz levels (see charts).

While further weakness is possible and the short term trend remains
down, current price levels will be seen as cheap in the coming years as
fiat currencies continue to be devalued versus store of value gold.

Gold looks oversold and gold’s 14-day relative strength index has
fallen to 28.4, below the level of 30 that indicates to some analysts
who study technical charts that a rebound may be imminent.

Markets and many experts remain in complete denial about the
ramifications of the EU, IMF, ECB deposit confiscation in Cyprus. The
mantra is that Cyprus is different and unique. This is the same
complacent and irresponsible mantra that was heard when the subprime
crisis in the U.S. reared its ugly head and when Greece began to implode
in 2009.

The CEO of Unicredit Federico Ghizzoni said yesterday that it is
“acceptable to confiscate savings to save banks.” He said that the
savings which are not guaranteed by any protection or insurance could be
used in the future to contribute to the rescue of banks who fail and
that uninsured deposits could be used in future bank failures provided
global policy makers agree on a common approach.


Gold in EUR (3 Year) – Bloomberg

He called for “a common solution in Europe” saying that the “EU should
pass laws identical and shared in different member states”. Indeed he
went a step further and called for a global coordination of deposit
confiscations to rescue failing banks.

Including deposits “is acceptable if it becomes a European solution,” said Ghizzoni, 57.

“What we cannot accept is differentiation country by country inside
the same area. I would strongly suggest to make this decision not only
within Europe but within the Basel Committee, where all countries are
represented.

Ghizzoni is also a Member of the Board of Directors of Institute of
International Finance in Washington, Member of the International
Monetary Conference in Washington and Member of the Institut
International d'Etudes Bancaires in Brussels. He attended the powerful
Bilderberg Group meeting in Spain in 2010 and he a frequent attendee at
Davos.

It is important to realise that the Cypriot deposit confiscation was
not a "haircut" rather this is a confiscation of people's deposits - 60%
of individual and companies hard earned cash saved in a bank.

Cyprus is not a tax haven or offshore. It is in the EU and the
majority of the deposits were held by EU citizens - Cypriots, Greeks,
British, German, Italian and citizens and companies of other nations.

Russian deposits made up just 8% of the total and of that only a tiny fraction was 'Oligarch money'.

This is an attack on capitalism itself and something that one would
expect in North Korea. It is a very dangerous precedent and what is more
concerning is that there are policy papers calling for similar
confiscation of deposits in the UK, Canada and New Zealand in future
"banker bail outs" or “bail ins”.

We do not have a “crystal ball” however we are keen students of
economic history and of the history of debt and financial crises. This
clearly shows that sovereign nations, be they led by kings and queens or
democratically elected governments usually resort to printing money and
debasing the currency or expropriating assets.


Gold in GBP (3 Year) – Bloomberg

Today, we have powerful supranational institutions who have little
loyalty or affinity with ordinary people or businesses and whose primary
aims seem to be to protect failing banks and a failing currency union.


The confiscation of deposits, especially deposits over the €100,000
level seems likely in other European countries and could be seen in
indebted nations globally.

Individuals, families and companies need to diversify their assets and not have all their life savings and capital in banks.

Source:-
https://www.goldcore.com/goldcore_blog/global-deposit-confiscation-called-influential-ceo-italys-largest-bank