With investors around the world now watching in fear after as government theft has become a reality, today Kevin Wides out of Switzerland reports on the ongoing nightmare of the ‘Cyprus Solution’ and what investors must do to protect themselves. Below is what Wides had to say:
“The reason why there has not been excessive inflation or a hyperinflationary environment, despite all the money printing, is due to the subdued levels of the velocity of money. In the US the velocity of money is at its lowest in over 50 years….
“As a gold bull I would like to say that with Cyprus Bank depositors now losing a large percentage of their cash on deposit, that this will cause an immediate move by other European depositors into the physical gold and silver markets in order to get their wealth outside of the banking system.
I believe that this will be the case, but it is likely a delayed event. With the superb manner that the gold and silver markets have been managed to date by Western governments, the average citizen in Europe is still not looking at or noticing gold and silver as an investment or store of wealth.