Germans Are Buying Gold, Fearing Another Weimaresque Hyperinflation
Germans are buying gold at a frantic pace because they are worried about the future.
According to the World Gold Council, in a report released Thursday, demand for gold bar and coins increased 20% in Germany during the first quarter, compared to a year prior.
Germany’s economy is strong, which is somewhat atypical considering how strong German is currently. Growth in Europe elsewhere has slowed, with gold increasing in price in terms of euros.
The European Central Bank embarked on an experiment aimed at purchasing upwards of $1.3 trillion of bonds.
German citizens are worried about a spike in prices triggered by central bank printing.
“You’re talking about a group of people who have been burned before by governments overprinting currency. They’ve been through hyperinflation back in the 1920s,” said Van Simmons, a buyer and seller of gold coins who is president of David Hall Rare Coins.
“It is only a matter of when, not if, the bull market resumes in light of the major instability that is being created by reckless global monetary policy, trillions of negative yielding paper and fiat currencies that continue to get abused,” Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a note to clients on Thursday.
The uncertainty is anticipated to stay as nations in the eurozone start to fall apart, starting with Greece. It is likely that, while the euro persists, its value becomes quite chaotic compared to the US dollar.
At United Coin & Precious Metals we look to get gold bullion in the hands of everyday people, from our storefront in La Jolla, California.