Germans Buying Mass Gold

Buying gold is typically what you see when the economy is not doing very well, since gold is a standard, and it’s often a sign that people are worried about their economic future. The World Gold Council reported that Germans are actually buying gold at massive rates, with the demand for total gold bar and coins jumping 20 percent in the first quarter of 2015. For Germany, it is unusual for gold to be a hot commodity, especially right now since the economy of Germany is really strong right now. Even Europe has regained economic momentum within the last few months, which is outpacing the United States economy currently.

gold

The gold sales are rising dramatically because the European Central Bank is going to be purchasing $1.3 trillion in bonds, which is driving inflation fears. The citizens consider this to be central bank money printing, and it is worrying people that the prices will be going up on nearly everything. There is also worries because of Greece and the never-ending crisis there, and the tensions between Russia and Ukraine also are sparking worries.

Global demand for gold bars and coins went down 10 percent during the first quarter in other parts of the world, so the enthusiasm is not being shared by people outside of Germany and the European areas. American demand for the gold bars decreased by 12 percent as the Feds are getting ready to raise the interest rates sometime between June and September. Gold has gone up 3.5 percent in 2015 to $1,225 a troy ounce. In 2011, gold was at an all-time high at $1,900, so there is definitely a calm down in America in terms of buying gold or economic worries.

There is a lot of global reckless monetary policy going on right now, which means that the demand for gold will likely increase both in America and abroad. For now though, it appears that Germans are really worried about inflation, buying up the gold to ensure they have assets for when the currency drops in value.


 

 




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Jeanne Rose
Jeanne Rose lives in Cincinnati, Ohio, and has been a freelance writer since 2010. She took Allied Health in vocational school where she earned her CNA/PCA, and worked in a hospital for 3 years. Jeanne enjoys writing about science, health, politics, business, and other topics as well.

2 COMMENTS

  1. Your mixing physical buying with paper gold buying in America. How slick. Did you read the US Mint sales of physical gold?

  2. The rush to gold coins in Europe comes as the so called economist Joe Bofinger is pushing a cashless system for Europe, UK & USA, the G7 meeting June will be on this crazy push to end cash for any transactions. This is the end of freedom & if you think the banks in Europe, UK, Wall Street TBTF bankers & Congress will not push this hard think again, that gives total control over how you spend & when. If you have $599K in a bank & you don’t spend heck the gov will just take it. Politicians make all the promises & never fund them, pensions are being wipe out, social programs will be cut to the bone as the crisis sets in this fall. What took place in Cyprus of Bail in’s was a trail run for the rest of the governments because they just took it & no blood was shed, how much of a gamble will governmnents take they can continue down this path of just taking people money any way they see fit, by higher taxes, bail in’s of TBTF banks who no longer are banks but are just gambling houses. This are started after Bill the bankers best friend repealed Glass Steagall that prevented bank bail outs.
    A cashless system is nuts, hackers, power outages & many other factors could send us back into the stone age, this is a FUBAR created by the Wall Street Club.

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