LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

The Optimist’s Guide to Airlines and Gold
By: Frank Holmes, US Funds

“Baghdad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools
By: Clint Siegner, Money Metals

Market Action Suggests Downside in Precious Metals
By: Jordan Roy-Byrne CMT, MFTA

Gold Looks Good & Silver Looks Great
By: Stewart Thomson, Graceland Updates

QE4ever Arrives in One Quantifiable Quantum Leap!
By: David Haggith

Precious Metals Update Video: Gold in a pause zone
By: Ira Epstein

The Dutch Central Bank Endorses The Gold Standard
By: Dave Kranzler

Inflation in the Offing?
By: Gary Tanashian, NFTRH

SWOT Analysis: Gold Sales in India Continue to Weaken
By: Frank Holmes, US Funds

Perspective is Everything - Gold
By: Rambus

 
Search

GoldSeek Web

 
Q1 physical gold sales up 20% in Germany as gold price hits $1,233


 -- Published: Monday, 18 May 2015 | Print  | Disqus 

By Peter Cooper

Gold prices began the week at their best for three months and immediately bounced higher again to $1,233 an ounce with silver outperforming with higher percentage gains at $17.74.

Meantime, the latest World Gold Council data revealed that the total demand for gold bars and coins was up by 20 per cent in Germany in the first quarter in a rush to get out of the then slumping euro.

Euro’s impact

The German economy may be the best performing in Europe at the moment but that has been partly down to a devaluing currency, and one sure fire way to protect against devaluation was to buy gold which is priced in US dollars.

There is also a good historical precedent for Germans to buy gold as twice in less than a hundred years paper money has become worthless: in the hyperinflation of the early 1920s and when the Nazi regime was annihilated.

Could the European Central Bank’s $1.3 billion bond buying program result in similar inflation? With deflation more of a pressing problem it seems unlikely but then again printing money does usually end up with money losing its value.

Then there are worries about the Greek debt crisis and whether that might produce a second round of the global financial crisis and concern about growing Russian nationalism and its invasion and annexation of Ukrainian territory.

Euro strength

Still we will have to see if Germans continue to buy gold now that the euro is rising against the US dollar in a spectacular reversal that has caught out many pundits in the foreign exchange market. Some later buyers of gold will have lost money in euros.

Demand for gold bars and coins was actually waning in other parts of the world in the first quarter with total global demand down 10 per cent while US demand for these physical hard assets dropped by 12 per cent.

However, with fears of rising US interest rates now being kicked further and further down the road, the recent weakness of the gold price looks overdone and a return to $1,300 seen earlier this year looks likely.

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Monday, 18 May 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.