MW: Here’s where some Greeks are stashing their cash — in gold sovereigns
Spooked by the country’s escalating debt crisis, Greeks yanked billions of deposits out of the country’s banks in recent months until the government shuttered them. Where is the money going?
While some of it is likely stuffed under mattresses or deposited in overseas accounts, a chunk has already been used to buy gold GCQ5, -0.75% — gold coins to be exact.
“In June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece,” the U.K.’s Royal Mint said in a statement.
The Royal Mint started selling Sovereign coins, made from 22 carat gold, online for investors last September. Prices start from 198.47 pounds ($311.88).
The Mint, which is the world’s largest in terms of export, declined to say how many coins it has sold but said the rise in Greek demand was twice the monthly average over the last five months.
An expanded version of this report appears on WSJ.com
