GIG-OS ENGLISH: France new restrictions affect gold sales

France new restrictions affect gold sales

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Euro is a fairly new currency oftentimes still subject to experiments. One of the first changes took place in England where already 500 euro notes were forbidden in 2010. Now France has considered to follow the same way. How will France actions influence gold?

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On May 4, 2015 the French government announced its plans to restrict excessively cash payments. The measures include to forbid making more than 1,000 euros in cash payments at a time, compared to 3,000 euros payments, and if larger quantities are withdrawn they will be monitored by the French authorities; also non-residents will only be able to play 10,000 euros in cash compared to 15,000 before.

Money Laundering Authority will be in charge to control greater amounts in banks, and at the same time banks are to report transfers above 10,000 euros within the European Union not just in cash, but also in gold.

Recent terrorists attacks and the ever-present issue of corruption led the French Finance Minister Michel Sapin contemplate these actions in order to combat public deficit, increase tax revenue, combat terrorist financing, and money laundering, and thus resolve the ongoing crisis.

The fact that France bets for a monetary policy above board makes expert wonder whether other countries using euro will copy these measures. After all, they are all in the same boat when it comes to tax evasion and crisis issues.

While French public opinion advocate for this restriction as it is a copper-bottomed way to ensure the full payment of taxes, the vast majority of experts declare that in terms of its overall impact it could mean a reduction in civil liberties and monetary freedom.

The French people who aim to own their own gold reserves to guarantee the security of their capital will have to inform themselves about the new requirements. Experts in the gold market already reported restrictions could make the French people think about storing their gold reserves abroad. Nonetheless this measure will be applied in September 2015 and there can still be last-minute changes.

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