Market Paradox: Record gold purchases in Europe over weekend see prices climb by only .2%

If there was any debate on whether gold prices are being manipulated, all one has to do is look at Europe over the past 24 hours and you will be completely convinced.  Purchases of gold bullion in Britain, and from dealers all around the world by Greek, German, and other people’s residing within the Eurozone, was more than double the historic average in the past few days.  Yet as of the market opens on June 29, the price of gold has only risen .2%, or $2.20 in dollar terms.

European investors are increasing purchases of gold as Bloomberg reports, 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.As one Frankfurt-based bullion dealer noted, “most of our common gold coins are sold out, 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.”

Emailed statement from UK Mint…

“During June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece,” accord. to e-mailed statment from U.K. Royal Mint.

As Bloomberg reports,, 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.

“Most of our common gold coins are sold out,” Daniel Marburger, a director of Frankfurt-based, 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.”

GoldCore, which buys and sells bullion, reported coin and bar demand increased “significantly” on Monday. Sales to U.K. and Ireland today are about three times the average level for the past three Mondays, according to an e-mailed statement from the Dublin-based firm.

BullionVault, which operates the largest online physical gold trading platform, reported a jump in sales during the first half of this year, a sign of a broader increase.

But despite this demand, gold “prices” are getting hammered after an initial spike… – Zerohedge

The cause for this of course is that Western central banks desperately cannot have gold prices find their own natural equilibrium as both the banks and the dollar need for the price to remain low to protect their naked short and derivative positions.  And over the past five years there has been a concerted effort to deceive the public on the power of gold ownership, and to coerce investors and savers into dollar based paper assets.


But like the banking crisis in Cyprus just a few years ago, people are quickly becoming wise to the fraud that is within the fiat currency system, and are looking for more tangible and hard assets like gold and even Bitcoin as the monetary system rushes headlong into its next failure.  And as we have seen in the bond and stock markets over the past month, and in the growing liquidity crisis that is brewing from a lack of assets to mop of the world’s dumping of dollars, the trend is now pointed downward for paper based markets and many people are rushing into physical gold because the memory of 2008 is still not too far back in the annals of time.

Kenneth Schortgen Jr is a writer for,, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.