Greeks Liquidate Gold Pounds Amid Soaring Prices

Greeks are increasingly selling their gold pounds as prices surge to 600 euros, driven by a recent gold "fever" and expectations of future price corrections.

Data from the Bank of Greece (BoG) reveals a significant increase in gold pound liquidations in the first half of 2024, reflecting the metal’s recent price highs.

In the second quarter of 2024, Greeks sold 13,917 gold pounds to the BoG, up from 9,795 in the first quarter and 21,542 in the first half of 2023—a 10% increase year-on-year. Conversely, purchases of gold pounds fell sharply by 52% in the same period, with only 3,114 pieces acquired compared to 6,921 in the first half of 2023.

Simeon Mavroudis, manager at Fast Finance SA, attributes this trend to the gold price's strong upward trajectory. The gold pound's value has risen by 23% this year and 96% over the past six years, reaching a historic high of 600 euros. Mavroudis suggests that with such gains, it is logical for holders to sell, as they realise substantial profits.

Despite the current selling spree, global economic conditions and inflationary pressures suggest that gold prices might continue to rise. BoG Governor Yannis Stournaras noted that gold remains a key store of value during economic uncertainty, much like during the 2008 financial crisis.

While recent gold prices have faced short-term pressure, analysts predict a rebound, with prices expected to reach $2,500 an ounce due to ongoing geopolitical tensions and anticipated U.S. interest rate cuts. Gold continues to be seen as a safe haven compared to riskier assets like equities and volatile cryptocurrencies.

(Source: To Vima)