Outside of the Greek stock market, if there is one stock to watch as an indicator of what the market thinks of the chances Greece stays in the euro or not, watch De La Rue. Traded in London, they make physical currency and if Greece leaves the euro, a lot of drachma will have to be created and De La Rue would be the likely maker of it. http://www.delarue.com/ProductsSolutions/BanknoteProduction/. Today, De La Rue hit a 52 week high, up 3.2% on the day.

Category: MacroNotes

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2 Responses to “De La Rue”

  1. Boock,

    nice Note on “De La Rue”..

    gives rise to /another/ Industry ‘We’ve’ punted away..

    http://en.wikipedia.org/wiki/American_Bank_Note_Company

    http://scripophily.net/amerbanknote.html
    ~~
    from..
    http://search.yippy.com/search?query=American+Bank+Note&tb=sitesearch-all&v%3Aproject=clusty

    see also..
    Old money, art and history lure collectors: On the block are 19th-century plates used to print bank notes and stock certificates.
    Byline: Brent Jones Nov. 8–Tony Terranova, a professional coin collector from New York City, will have a chance to diversify his collection when more than 100 hand-engraved steel plates go on the auction block today. The plates belonged to the American Bank Note Co. and were used to print stock
    http://www.highbeam.com/…116D130C0016006D4B36254D35463B78700E730E0B60641A617F1371193F – [cache] – Highbeam
    Brazilian government to test plastic bank notes.new windowpreviewshow in cloudsflag as inappropriate
    Securency plans to invest US$200mil to build a bank notes producing plant in Brazil so as to supply both the country and South America. Securency’s plastic bank notes will start being tested in Brazil as of April 22, 2000. Some 125mil bank notes will be issued during this yearand other 125mil in
    http://www.highbeam.com/…1D1D6910030B1D07224E263C4D3C437779710F720E0B61651A617F137155 – [cache] – Highbeam

  2. Simon says:

    I’m not surprised De La Rue are up only 3.2%. It would not surprise me at all if Greece having defaulted became, from the country with the largest black market economy and highest use of paper currency, the country with the least physical currency in circulation. It would not surprise me if the entire population became repelled by physical currency, at least in the form of paper…

    If you think about it going through the process of giving up your own currency and then having it trust back upon you by default… is probably not a nice experience.

    I can see a new leg higher in gold launching from the failure of the Euro. If only due to the desire for a versatile generic currency in the parts Europe suffering from currency blues.