Greece and the Moment of Truth

AG greece_truthImagine for a moment the feeling of sheer panic you might experience if you went to your bank and were told you cannot withdraw your own money…

Unfortunately, the people of Greece are going through such a scenario right now as we speak…

After a weekend in which no deal was able to be reached concerning an extension of funding for the country, Greece has now imposed capital controls and closed its banks for the next several days.

Greek depositors are limited to withdrawals of only $66 per day, and many are currently wondering if their money is in fact safe as they have been assured.

The effect of these capital controls on the Greek people and Greek businesses cannot be overstated. This could potentially send the country right back into recession- a very deep recession-and could cause the country’s problems to escalate even further.

The Greek leadership has called for a referendum on July 5th to discuss further austerity measures, leaving the country in no man’s land until then…

The ECB has said that it will not extend any further funding to the embattled nation, and this could be just the beginning of additional capital controls.

The people of Greece are powerless as the saga plays out, and while everyone is hoping for a deal to be reached at some point, this could potentially be the beginning of a Greek exit from the European Union.

If this does in fact prove to be the case, worries about potential contagion will likely spread and intensify.

Greece could be forced to re-introduce its own currency-the drachma-and in doing so would force the country to undergo a very difficult period of change.

Such a move would possibly be done “behind the lines” so as not to encourage panic. Such a move could be taking place right now…

If the drachma were introduced again, it would likely be exchanged on a one-to-one basis with the country’s Euros. Unfortunately, once the capital controls are lifted, however, the currency would likely experience a very sharp devaluation.

Such an event unfolded in Argentina at the turn of the century when it defaulted on its public debt…

The sharp currency devaluation would fuel inflation. As prices for everyday goods and services increase, the country’s economic woes would also likely increase as well. The country could potentially be put into recession and economic distress that could possibly last many years…

In the meantime, the people of Greece are left with little control over their finances and their futures.

Terrifying doesn’t even come close to describing what those people must be experiencing right now…

At times like this, once could potentially benefit from holding alternative assets-assets that could even be used for barter and exchange. Assets that could be used to buy food, gas, or other everyday necessities…

Assets like gold, silver and other precious metals…

We believe that the current crisis faced by the Greek people is a prime example of why an investment in physical precious metals may be wise.

Gold and silver cannot be withdrawn, cannot default and carry no counterparty risk…

These precious metals have been recognized and sought after for thousands of years sue to their reputation and history as a reliable store of value and protector of wealth.

Owning physical precious metals could potentially provide a great deal of comfort to the people of Greece right now. The knowledge of owning something of value that you control and can use as a medium of exchange could help get one through these difficult times.

Unfortunately for many people in Greece, it may be too late…

We live in an ever-changing world, and one never knows when things could fall apart. Many Greek citizens likely thought their government would be able to secure a deal, and are now facing very limited access to their money and uncertainty about the country’s future.

Don’t wait until it’s too late… Consider an allocation into physical precious metals like gold and silver today. Metals that can provide a degree of comfort and that can be used for barter and exchange. Metals that will be there for you if or when you need them…

One of the simplest ways to gain exposure to these critical precious metals is through a precious metals IRA. Getting started with a gold IRA is easy. Our experienced executives are here to guide you, step by step, through the entire process. Call us today at 1-800-341-8584 FREE

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