Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

GoldSeek Radio: Gerald Celente and Wolf Richter, and Chris Waltzek

Is The U.S. Economy Really Growing?
By: Peter Cook, CFA

Pro-govt. Turkish paper reprints Manly's RT exposure of gold price suppression
By: Chris Powell

Yet Another Chart That Screams “Look Out!”
By: John Rubino

Bonds, Inflation And Amigos
By: Gary Tanashian

SIC Perspectives
By: John Mauldin

What are all those monetary metals derivatives held by a few big U.S. banks?
By: Chris Powell

RT publishes detailed report by Ronan Manly on gold price suppression
By: Chris Powell

Asian Metals Market Update: March-19-2018
By: Chintan Karnani, Insignia Consultants

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Roughly 1% on the Week
By: Chris Mullen, Gold Seeker Report


GoldSeek Web

Greeks Can’t Tap Cash, Gold, Silver In Bank Safety Deposit Boxes

 -- Published: Tuesday, 14 July 2015 | Print  | Disqus 

- Greek capital controls also prevent access to contents of safe deposit boxes
- Restrictions on safe deposit access doesn’t protect banking system unless contents confiscated
- Readers should heed warnings by Marc Faber and Ian Spreadbury of Fidelity
- Important to own assets outside banking system and not in bank safe deposit boxes
- Own physical bullion in private safety deposit boxes and the safest private vaults

Capital controls have been in place in Greece since the start of the month to protect the banks from mass withdrawals by nervous Greeks. They have rightly been concerned about their savings, the collapse of the banking system and the loss of their savings in deposit confiscations or bail-ins.

Pic 2 - SDB

Many Greeks were also withdrawing their cash because they fear the country might be forced back onto the drachma. However a little known fact is that, Greeks who had prepared for bank runs by withdrawing cash and buying gold and silver bullion and then lodging that bullion and indeed cash into safety deposit boxes have also been caught up in the draconian capital controls.

We have warned about this for many years and warned as recently as April this year that people should avoid using safety deposit boxes in banks.

“Greeks cannot withdraw cash left in safe deposit boxes at Greek banks as long as capital restrictions remain in place”, Nadia Valavani, a Deputy Finance Minister in Greece told local television station according to a Reuters report.

The report (Greeks cannot tap cash in safe deposit boxes under capital controls) was little noticed at it was published on the less trafficked ‘Bonds’ section of on Sunday July 5th at 1:58 pm EDT or 6:58 pm GMT. Sunday afternoon and evening is a time when traders, investors and even eagle eyed news junkies are likely to be taking a well earned break.

The notion that safe deposit boxes – facilities that are used by many precious metals investors and others seeking to safeguard their wealth and valuables – need to come under capital controls to protect against bank runs is a dubious one.

This cash is not in the banking system – its withdrawal would have no negative impact on the system. Its availability to its owner might bring cash into circulation which would benefit the wider community.

The only reason to put access to safe deposit boxes under capital controls – measures which were agreed between the government and the banks – is because the banks and governments wish to retain the option of confiscating the contents of those boxes should the crisis deepen.

The low level war on cash and gold looks set to intensify, and governments look likely to wish to prevent savers and investors taking their cash out of the bank and putting them in safe deposit boxes. This draconian move may be part of an endeavour to do that.

Safety deposit boxes are a convenient facility to store a small quantity of precious metals. However – as the Greek situation demonstrates – the convenience of ease of access to a local safe deposit box can be offset by the fact that governments and banks can lay claim to their contents at the stroke of a pen.

It would be unwise to view Greece as an exceptional case.

Such complacency is not shared by respected economic historian Marc Faber who recently warned Bloomberg viewers that “Greece is coming to your neighbourhood very soon” because “the world is over-indebted”.

This view has been echoed by many well placed observers from HSBC, Goldman Sachs and Fidelity in recent months. Most recently Fidelity’s Ian Spreadbury made the highly unorthodox recommendation that savers should keep some precious metals and cash “under the mattress”.

What happens next in Greece will determine the fate of the deposit box holders and indeed all citizens in Greece and indeed the wider Eurozone.

The ECB, reneging on its duty of lender of last resort, has put Syriza in an untenable position. It should be remembered that Mario Draghi came to the ECB from Goldman Sachs despite the fact that Goldman were found to have aided the previous Greek government in order to cook the books in order to borrow €1 billion that it could not afford in 2008 and indeed to join the monetary union. Indeed it is alleged the Draghi himself helped cook the books but he denies this and says Goldman did this prior to his joining.

The Telegraph’s AEP writes, “The Greek banks are on the verge of collapse. There is not enough cash left to cover ATM withdrawals of €60 billion each day through this week, or to cover weekly payments of €120 to pensioners and the unemployed – that is the to say, the tiny fraction of the jobless who receive anything at all.”

In the run up to the referendum former Finance Minister Varoufakis had made assurances that the EU had no legal power to expel Greece from the euro – a statement which likely encouraged the electorate to vote “No”. True though this may be, the EU institutions have instead created the conditions whereby Greece either capitulates completely or is forced to leave the euro of its own accord.

The “deal” which Tsipras must now get through parliament in Athens may save the banking system for now – or not, depending on the reaction of the public to the deal – but at great cost to Greece.

Pensions will will be slashed, Value Added Tax (VAT) or sales tax will be imposed on goods and services.

Vital elements of Greece’s infrastructure will be sold off to businesses with close links to the financial institutions who played a key role in creating the crisis – and yet have only benefitted from the repercussions – following the typical IMF template for debt colonialism.

Whatever the outcome with regards to the contents of safe deposit boxes in Greece – while not forgetting that there are far more pressing issues at stake for the people of Greece and Greek society – there is a clear lesson from recent events.

As we consistently warn gold, silver and cash stored within the financial and banking system is in no way secure in the event of a crisis.

Investors should hold some physical gold and silver outside of the banking system in secure and private safe deposit box facilities. Precious metals should also be held in jurisdictions with a reputation for respecting private property such as Switzerland, Hong Kong and Singapore.

Must Read Guide: 7 Key Gold Must Haves


Today’s AM LBMA Gold Price was USD 1,153.20, EUR 1,046.89 and GBP 745.27 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,154.95, EUR 1,043.13 and GBP 741.59 per ounce.

Pic 1 - Chart1
Silver in USD – 5 Years

Gold fell $5.10 or 0.44 percent Friday to $1,157.90 an ounce. Silver slipped $0.08 or 0.51 percent to $15.50 an ounce.

Gold in Singapore for immediate delivery ticked lower and gold in Switzerland also weakened despite considerable uncertainty regarding the Greek “deal”.

Gold prices are down for a second day after ending yesterday down half a percent in dollar terms but 1% higher in euro terms as the euro fell on international markets. Support is at $1,155 and that level is holding for now.

Asian shares were mixed and future contracts tracking China’s key stock indexes fell sharply, suggesting a three-day rebound may be losing momentum.

European stocks are lower today on concerns that Tsipras may not be able to get the debt deal over the line in the Greek parliament. Even if he does, his government may not last long thereafter and a subsequent Greek government may elect to honour the will of the Greek people and rip up what most fair minded people see as a very unfair and completely impractical “bail out”.

Euro zone finance ministers will hold a telephone conference to discuss Greek bridge financing tomorrow, Austria’s finance minister said on today. It does not necessarily need a euro group summit to agree on bridge financing, Hans Joerg Schelling said. “If a reasonable proposal comes up, the euro zone finance ministers probably can decide about it in a conference call,” Schelling said.

The world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rise 1.5 tonnes on Monday, its first inflow since June 25.

Silver’s underperforming, down 1%, putting it on track for a fourth straight week of losses – if it ends this week in the red, it will have fallen in eight out of the last nine weeks.

Platinum and palladium are also marginally weaker, after both bucked the falling trend in gold and silver yesterday to rise 0.3% and 1.2% respectively.

Breaking News and Research Here

| Digg This Article
 -- Published: Tuesday, 14 July 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.