Tuesday, June 19, 2012

Gold as "safety"

A real-life example that dovetails nicely with my recent discussion regarding gold's exalted status as a "safe" asset.

Its value is highly contextual on events, because smuggling large amounts of gold is problematic, to say the least...especially when Sovereigns are on high alert for assets leaving the country.

Italian tax police have seized 50kg (110lb) of gold from an Italian businessman at the Swiss border.
The gold, worth around €2m (£1.6m), was found in a hidden compartment in his car last Thursday, the police said on Monday.
The man and his daughter, who was also in the car, were both charged with smuggling.
Italians are believed to have billions of euros in undeclared wealth stashed in Switzerland – funds that Italy is trying to have the Swiss authorities tax retroactively.
Many Italians have also bought gold as a refuge from a worsening European debt crisis.

No comments: