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.
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.