In a tweet posted Wednesday, precious metals consultant and analyst Dan Popescu shared a picture of a long line of people waiting in front of “Degussa store to buy gold in Köln.” Popescu described, “From Jan. 1, 2020, the limit to buy gold anonymously drops from €10,000 down to €2,000. Only two years ago the limit was €15,000.” One user posted his own photo and replied “This is me line at Degussa in 23rd. The employees said they haven’t seen anything like it before.” To give an idea of the relatively small amount of gold €2,000 (~$2,224) can buy, even a 50g gold bar is currently too expensive.
Negative rates are currently only being imposed on depositors with more than €300,000 because the authorities believe wealthier people are less likely to put cash under the mattress. What they fail to understand is many people choose to hold their cash in gold when the risk of debasement is running high.Click HERE to subscribe to Fuller Treacy Money Back to top