Gresham’s Law: No More Retail Gold In Europe

Bad money drives out good money.”   Gresham’s law is an economic principle that states:  “When a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.”  – Murray Rothbard

Gresham’s Law is also known as Copernicus’ Law, as Nicolaus Copernicus first formulated the theory in 1519.   The idea is that when a system has different forms of currency circulating and one of the currencies is perceived to be overvalued relative to the alternative currency, the undervalued currency will be hoarded and the overvalued currency will be used for transactions.

From The Dollar Vigilante:

I’ve been in Europe a couple of days now and one of my main goals here, other than protesting the G7, Bilderberg and visiting Liberland, was to find out if what Martin Armstrong wrote about – that there is a shortage of gold at the retail level in Europe – is true. What I’ve found is that, indeed, it is true, as in many European countries one is no longer able to buy retail gold coins for investment.

Shops are buying precious metals still, but no one is selling. Spanish banks that once sold gold to the public have shut down in Spain, and if people leave Spain wearing a lot of jewelry, authorities weigh and inspect the precious metals, as Armstrong reports.

You can read the rest of this here:  No More Retail Gold In Europe

The article above is based on reports from Martin Armstrong.  If the author for The Dollar Vigilante had not verified the assertions from Armstrong, I would not have published the report.

Armstrong never misses a chance to throw in some kind of reasoning for why he thinks gold is going lower.  He erroneously correlates demand in China with reported shipments of gold from Switzerland to Hong Kong.  That’s laughable because anyone who writes about gold should know that China also imports gold through Beijing and Shanghai and those numbers are a State secret.  Through the week ended May 22, withdrawals from the Shanghai Gold Exchange are up 20% vs. 2014 and 8% over the same period in 2013, which was a record year for withdrawals (2,197 tonnes).

19 thoughts on “Gresham’s Law: No More Retail Gold In Europe

  1. Dave, when you link to articles that feature absurd claims such as this:

    “Now, in Europe, there is no gold to be purchased…”

    It degrades your credibility as well.

    I have been living and traveling in Europe for the past year, and while the broader strokes of the article are reasonable, that kind of rank exaggeration harms efforts to spread the word.

    1. Well, two writers of two widely read websites have reported the same thing. Why don’t you go to Europe and see if they’re reporting the truth or are full of shit. Please report back. Their assertions have more credibility than your’s right now.

      1. Either it is true or not.

        I read both Martin Armstrong and Jeff Berwick. I differ with both (Armstrong more so) on some issues but believe them to be credible.

      2. Check for example.
        No issues whatsoever to buy PMs in the Netherlands, Belgium, Germany, Austria.

        Greetings from a Dutch stacker.
        (Don’t treat Jeff and other “gurus” as your God. Read all you can but do your own due diligence, mate)

  2. I think the disappearance of gold from European shelves is more of a move of decentralization than hoarding, possibly in preparation for even more movement in the case that the price goes higher and people decide to move it as a market currency. The world needs this kind of grass roots asset style trading. Bullion used as a currency would actually give debt-currency the opportunity to be better managed which, in this case, mean a withdrawal of debt levels (fiat currency) by way of higher interest rates.

    Precious metals make a wonderful supplement for the real economy. Let’s not forget the real economy. That should be the master.

  3. Ich checked some rumors:

    There is enough supply for Rands at Degussa

    People in Germany are going crazy for gold – May. 14, 2015

    Gold Bullion Buying In Germany Surges Due To Growing Risk

    GERMAN GOLD BUYING: A Chart You Have To See
    According to the World Gold Council, total German physical gold bar and coin demand during Q1 2015 was 32.2 metric tons (mt), Switzerland ranked second with 13.8 mt and the U.S. came in third at 9.9 mt. Interestingly, German physical gold investment increased 20% compared to the same period last year while U.S. gold coin and bar demand fell 12%.

    No problems for delivery are being reported in German press releases…

  4. Take it from a Dutch PM stacker: no issues whatsoever to order gold coins and bars on all Dutch and Belgian websites.

    Try for example
    Many more sites I can send you for reference.

    There goes Martin’s, Jeff’s and your credibility then…

    1. They are referring to coin shops that you walk into and try to walk out with bullion. A lot of people prefer to buy that way because if you pay with cash, it’s completely off the record. You use the internet to buy gold/silver, the NSA knows about it too (or whatever the EU equivalent of the NSA is).

  5. DK,

    Why do you deliberately spread DISinfo? To sell more of your B.S. [bullion shit]?

    Anyone living with both feet on the ground in Europe can tell you anyone can get all the usual bullion crap anywhere they want thru-out Europe — nothing has changed.

    Now, if you want rare (true numismatic) coins, instead of your bullion garbage, well, then you have the usual problem — so, there, too, nothing has changed.

    You and all you bullion peddlers [not numismatists] are almost as big a disgrace and danger as those you critisize to death.

    Shame on you.


    1. Tell ya what, why don’t you email Armstrong and the Dollar Vigilante guy. I’m just posting information that I think may be valid. I know from James Turk, who reported Friday to an email group i’m part of, that he can verify first-hand that spot gold is deeply in backwardation on the LBMA right now.

    2. Everyone: I’m glad my post elicited the responses that were posted. I’m going to make a blog post out of it and take a big swing at Armstrong’s head with verbal baseball bat. He is a huge charlatan who should still be in jail.

  6. I can assure everyone there’s no issues (at the moment) obtaining retail gold in Germany. I hope this isn’t the start of another trend hyping unsubstantiated claims. We’ve been there before, and it’s a sure way to turn people away from the metals.

    In so far as Armstrong’s ridiculous assertion that Chinese gold demand should only be measured by how much is coming out of Switzerland, I’m glad Kranzler called him on it.

    1. Everyone: I’m glad my post elicited the responses that were posted. I’m going to make a blog post out of it and take a big swing at Armstrong’s head with verbal baseball bat. He is a huge charlatan who should still be in jail.

  7. it should be noted that jeff from dollar vig, strictly is talking about spain. 2ndly, in canada mid west, there are very few 2015 gold maples. most are past years when purchasing from reg bullion dealers. never b4 have i not received newly minted gold maples for the year i purchased them. now between different friends, and myself this year, only 2 of 10 have been 2015.

  8. Hi Dave,

    Iam glad you are going to write a story about this BS of no (retail) metal available in Europe. Iam from Holland and can confirm the availability of metal here. Here is an overview of inventory of a Dutch both physical shop and online shop. . Btw the reason silver seems expensive here is because there is a 21% VAT levied on it. 0% on Gold. Hope this helps a bit on the piece you are writing.

    Regards, Hugo

  9. Dave,they have the article about no gold or whatever in Europe on Silver doctor. People are saying they live in Europe and plenty of metal

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