Could an Aussie Owned NZ Bank Take Deposits From its NZ Customers if the Parent Bank Failed?

Could an Aussie Owned NZ Bank Take Deposits From its NZ Customers if the Parent Bank Failed?

Prices and Charts

Change from last weeks gold and silver prices
Looking to sell your gold and silver? Visit this page for more information
Buying Back 1oz NZ Gold 9999 Purity $1881
Buying Back 1kg NZ Silver 999 Purity $697

NZD Gold Closing in on February Highs

Gold in NZ dollars was up over 1% this past week. Mostly care of the weakening Kiwi dollar. As we write NZD gold is sitting right on $1950 as we await today’s interest rate decision from the RBNZ. The February highs above $1950 are not too far away right now. And NZD gold has the look of wanting to move higher. A potential rate cut from the RBNZ this afternoon may help NZD gold do just that. NZ Dollar Gold Chart

Silver Also Up

NZD silver is up just under 1% this week. It now sits at the top of the consolidation zone it has traded in since March. But is not showing any clear direction presently. NZ Dollar Silver Chart

NZ Dollar Breaks Even Lower

The NZ Dollar is where the action is though. This past week the Kiwi has fallen another percent. Currently it is sitting just under horizontal support at 0.6600, as we await the RBNZ decision. A rate cut (which the likes of ASB are picking) will probably nudge the NZ dollar even lower. Just as we’ve been saying to watch out for recently. Our post from 2 weeks ago still holds true as far as what levels to look for next. Check that out if you missed it last week. NZ Dollar Chart LATE UPDATE: As we’re about to hit send the RBNZ has cut the Official Cash Rate (OCR) to a record low 1.5% (0% interest rates here we come!). In response the Kiwi dollar plunged below 0.6600. 0.6400 looks to be on the cards in the not too distant future. NZ Dollar 5 min Chart

Need Help Understanding the Charts?

Check out this post if any of the terms we use when discussing the gold, silver and NZ Dollar charts are unknown to you:

Gold and Silver Technical Analysis: The Ultimate Beginners Guide

Continues below
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Aussie (and NZ?) Dollar Set to Dive…and Take Your Wealth With it

Shae Russell writing for the Daily Reckoning Australia made some points about the Aussie dollar and the Reserve Bank of Australia. She says it’s not whether the RBA cuts rate today (they didn’t). But what the longer term impact of the interest rate decisions are for you as an individual. We’d say these almost all of these pretty much apply to the Kiwi dollar and the RBNZ too:
“My concern — and it should be yours as well — is the long-term impact of the RBA’s policies. Low interest rates will cripple the Aussie dollar. You see, Aussies have been lulled into a false sense of security the last few years. Compared to the rest of the world, Australia’s 1.50% cash rate seems ‘juicy’ to international investors. The US had zero rates at one point. The EU followed suit in 2014. Japan has negative rates. And the Bank of England has kept interest rates below 0.8% since 2010. So, the return on investment for parking cash in Australia was nothing short of incredible for yield-seeking punters. And with China buying large amounts of Australian commodities, the Aussie dollar stayed fairly resilient. No matter what was happening around the world, the Aussie economy defied the odds. Our $1.6 trillion mortgage debt — roughly 80% of which is held with the big four banks — didn’t seem to drag our banking sector down. To outsiders, our country is nothing short of an economic miracle. And all of this sunny news brought investors to our shores. Yet today, Aussies find themselves in a precarious position. China is slowing its purchases from us. The US has raised rates. The serviceability of a large chunk of Aussie mortgages is being called into question. If people can’t make those payments on their mortgages, the Aussie banking sector will look pretty dicey to outsiders. In the midst of all that, the biggest contributor to the Aussie economy — the consumer — is vanishing. The good times are well and truly over, leaving our central bankers scrambling to keep things as they are. A rate cut — whether it happens next week or a month or two after — is inevitable. Our central bankers will yank down on this lever in the hopes of maintaining the status quo. But…these decisions will have a long-term impact on you. The impact of a rate cut isn’t obvious at first. And it’s highly unlikely that it will ‘juice up’ the consumer and encourage them to spend more money. It may not even prop up the housing sector like our bean counters hope. Essentially, low interest rates will lead to the long-term erosion of your wealth. The first sign will be even lower interest rates for the cash held at the bank. The second sign will be the declining value of the Aussie dollar. The third sign will be that the Aussie dollar buys less than it used to. And this can happen quietly…in the back ground over the next few months. The point is, the decisions the RBA makes this year aren’t going to save the Aussie economy. They will destroy the Aussie dollar. And sink your wealth with it.”

Could an Australian Owned NZ Bank Take Deposits From its NZ Customers if the Parent Australian Bank Failed?

Speaking of Aussie, we had a few of questions in this week from someone thinking of buying gold…
“I am looking to buy gold as a means of deposit protection after learning about the banks “haircut” policy when it comes to bail ins.  I have lost trust with the banks some time ago and have been “red pilled”  in the corruption of the monetary systems for some time along with the governments and Politicians. I have never looked at precious metals as a form of insurance for my deposits. However, as I see the state of the huge debt bubble and the massive debt crisis versus the state of the Aussie economy, it has me concerned. Can the Aus banks e.g ASB take deposits/haircut from NZ customers if the Australian economy fails? What would be a good ratio of silver to gold if I were to buy?”
Here’s our response: Yes the New Zealand bank bail in scheme is quite concerning for deposit holders. Especially since unlike most other western nations there is no bank deposit insurance protection for any level (as you may or may not know, most other countries have at least $100k deposit insurance). So 100% of our deposits are potentially at risk were a New Zealand bank to fail. And as we’ve written previously, if one bank is in trouble here it’s likely others will be too. Here’s a bunch of articles we’ve written on this subject including: If a Bank Fails, Are Kiwisaver Funds Affected by the OBR? Bank Failure Articles This reader knew all about the RBNZ’s bank bail in scheme called the Open Bank Resolution (OBR). But in case you don’t we’ve updated this post from 2011 with all the details:

Bank Failure | Could it Happen in NZ? | The Reserve Bank Thinks So

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Now on to the rest of his questions…

In answer (as best we can anyway!) to your questions (and remembering we are not financial advisors – just giving our opinions): Can the Australian banks e.g ASB take deposits/haircut from NZ customers if the Australian economy fails? Not really. As it is the RBNZ that implements the bail-in, if a bank is in trouble, not the bank itself. The RBNZ would shut down the bank and see what assets it had left and work out how much it needed to haircut depositors to keep the bank afloat. However the parent banks in Aussie could extract capital from their New Zealand subsidiaries if their Australian balance sheets needed shoring up. Potentially this could make the NZ banks weaker and therefore more susceptible to failure themselves. If the Australian banks end up in that much trouble we’d guess the local banks here would also be in difficulty given how closely our economy is connected to Australia. So, if the Australian economy was to take a dive and an Aussie bank got in trouble because of this, it wouldn’t directly affect the customer deposits of a subsidiary bank in New Zealand. But, the New Zealand economy and therefore New Zealand banks might be under similar strains anyway. We’ve answered his other question previously “What would be a good ratio of silver to gold if I were to buy?”. It’s right here in this Common Questions From First Time Gold and Silver Buyers. If you’re thinking of buying there are a bunch of other Q and A’s in there including:
  • What is the Spot Price of Gold or Silver?
  • If Precious Metals Markets Are Manipulated Why Should I Buy Gold and Silver?
  • How Much Gold and Silver Should I Purchase?
  • Do I Have to Pay Upfront? (50% deposit option)
  • How Do I Pay?
  • How is Bullion Shipped? Can it Go to My Work or Home Address? Is it Insured?
  • How Soon After Payment Will I Receive My Bullion?
  • Will Some Products Be Easier to Sell Such as Coins Versus Bars? And Local NZ Bullion Versus Imported Bullion?
  • How Can I Be Sure There Will Be Buyers For My Gold and Silver When I Want To Sell?
  • Is There a Difference in Price Between Buying and Selling?
  • Once I’ve Bought, Where Should I Store My Gold and Silver?
  • I Read in One of Your Articles That Gold or Silver Coins of 99.9% Purity Are GST Free – Does That Apply to Bars as Well?
  • How Can I Be Sure of the Purity of the Gold or Silver Supplied?

Buying Precious Metals | Common Questions From First Time Gold and Silver Buyers

If you’re looking to buy and have any other questions then get in touch by any of the methods below. You certainly won’t be joining the masses in buying. Internet searches from investors worldwide wanting to “buy gold” fell last month to their weakest volume since last summer’s 11-year low. Buy Gold Internet Searches But history also shows that the best time to buy is when no one else is interested! Given the state of the New Zealand Dollar, buying some gold looks like a pretty good hedge right now.
  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Shop Online with indicative pricing

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This Weeks Articles:

Buying Precious Metals | Common Questions From First Time Gold and Silver Buyers

Tue, 7 May 2019 3:03 PM NZST
common questions gold and silverWe receive a great deal of questions from first time gold and silver buyers. So we thought it worthwhile to put them all into the one place… Buying precious metals can be a confusing project to embark on. In fact that was one of the reasons we set up Gold Survival Guide in the first […] The post Buying Precious Metals | Common Questions From First Time Gold and Silver Buyersappeared first on Gold Survival Guide.
Read More…

Bank Failure | Could it Happen in NZ? | The Reserve Bank Thinks So

Tue, 7 May 2019 1:00 PM NZST
Could a Bank Failure happen in NZBack in 2011 we were reading a Zero Hedge article with the rather long headline: “Futures Plunge As Fed Discloses New Stress Test: Fears US Banks Will Need To Raise Tens Of Billions In New Capital”. This article outlined how the US Federal Reserve was intending to stress test 6 large US banks against a […] The post Bank Failure | Could it Happen in NZ? | The Reserve Bank Thinks So appeared first on Gold Survival Guide.
Read More…

Central Bankers Dangerous Inflation Game

Thu, 2 May 2019 11:47 AM NZST
Prices and Charts Looking to sell your gold and silver? Visit this page for more information Buying Back 1oz NZ Gold 9999 Purity $1847 Buying Back 1kg NZ Silver 999 Purity $681 Gold Bounces Back Gold in NZ Dollars was up 0.60% this past week. It’s hovering once again just above the 50 day moving average (MA) line. Also again not […] The post Central Bankers Dangerous Inflation Game appeared first on Gold Survival Guide.
Read More…

Should I Pay Down Debt or Buy Precious Metals?

Tue, 30 Apr 2019 3:50 PM NZST
Here’s an excellent question from a reader: Should you pay down debt or buy precious metals… “My specific question relates to whether to pay down debt or stack metals? Obviously high interest debt is bad, but lower rate mortgage debt? I’m torn. Firstly, I don’t think many people ever regret paying off debt, but on […] The post Should I Pay Down Debt or Buy Precious Metals? appeared first on Gold Survival Guide.
Read More…
As always we are happy to answer any questions you have about buying gold or silver. In fact, we encourage them, as it often gives us something to write about. So if you have any get in touch.
  1. Email: orders@goldsurvivalguide.co.nz
  2. Phone: 0800 888 GOLD ( 0800 888 465 ) (or +64 9 2813898)
  3. or Online order form with indicative pricing


7 Reasons to Buy Gold & Silver via GoldSurvivalGuide Today’s Prices to Buy
1oz NZ 99.99% pure gold bar 1oz NZ Gold Ingot $2031
1kg NZ 99.9% pure silver bar  1 Kilo NZ Silver Bar $798 (price is per kilo for orders of 1-24 kgs) $793 (price is per kilo only for orders of 25 kgs or more)
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1oz PAMP Suisse 99.99% pure gold bar PAMP Lunar Goat Gold Bar $2062
1kg PAMP 99.9% pure silver bar PAMP Silver $848
1oz Canadian Gold Maple 99.99% pure gold coin Gold Maple $2103    (or $2063for 10 or more Backdated Year Coins)
1oz Canadian Silver Maple 99.99% pure silver coin (Minimum order size tube of 25 coins) Silver Monster Box Tube of 25 $732 Box of 500 $13,833 (2019’s) $13,779 (backdated other years) (Fully insured and delivered)
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Note:
  • Prices are excluding delivery
  • 1 Troy ounce = 31.1 grams
  • 1 Kg = 32.15 Troy ounces
  • Request special pricing for larger orders such as monster box of Canadian maple silver coins
  • Lower pricing for local gold orders of 10 to 29ozs and best pricing for 30 ozs or more.
  • Foreign currency options available so you can purchase from USD, AUD, EURO, GBP
  • Plus we accept BTC, BCH, Visa and Mastercard
  • Note: For local gold and silver orders your funds are deposited into our suppliers bank account. We receive a finders fee direct from them. Pricing is as good or sometimes even better than if you went direct.
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We look forward to hearing from you soon. Have a golden week! David (and Glenn) GoldSurvivalGuide.co.nz Ph: 0800 888 465 From outside NZ: +64 9 281 3898 email: orders@goldsurvivalguide.co.nz
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The Legal stuff – Disclaimer: We are not financial advisors, accountants or lawyers. Any information we provide is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we discuss is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.
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