***Germans Stockpiling Gold Amid Market Panic***
Posted October 11th, 2008 by legalizeliberty
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German gold dealers have stopped taking new orders for the precious metal as demand has skyrocketed. Gold is seen as a safe investment during the market turmoil.
In uncertain economic times, Germans are dumping stocks and shares to take refuge in precious metal, accoring to a Wednesday article in a Berlin newspaper.
German gold dealers report running low on stocks of gold bars and coins.
Heiko Ganss, head of the Berlin branch of gold merchant Pro Aurum, told the Berliner Zeitung newspaper that most gold traders were refusing new orders, as they couldn't meet the current demand.
"Demand is running well above our capacity to supply," he was quoted saying, saying retail banks in Germany were also unable to meet demand.
"Exploding demand"
Gold traded in London at $913 (656 euros) per troy ounce on Wednesday morning, up from $876.75 late Tuesday.
"Demand has exploded in the past few days," said Stephan Henkel, a gold broker at Umicore, which presses gold bars and coins and puts them on sale. Delivery times were running at two to four weeks.
"Currently, demand is about 10 times what it is at normal times," he said.
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The Weimar Republic
The German's know what happens when a currency becomes worthless. The only thing of value is gold. They know first hand.
Healthnut4freedom
"Trust in the Lord with all thine heart; and lean not unto thine own understanding. In all thy ways acknowledge Him, and He shall direct thy paths." Proverbs 3:5,6
Yes,
there is still family lore alive concerning the inflation of the 1920s and the Great Depression of 1929. Many fortunes were destroyed, unemployment and political violence were endemic.
Many people I know are aware of the oncoming danger, but until recently the media lured us to believe in an economic pick-up. So only a minority of people took precautions and there is no real bank-run but a steady withdrawel of money from the banks. And I'am convinced the sudden shortage of physical gold is due to 'premium customers' of financial institutions are stocking up with gold now.
Freedom brings People together
Germany 1925
bills where burned in cooking stoves for heat value
http://www.votenader.org/...
http://www.flickr.com/pho...
"Currently, demand is about
That sort of depends on what he considers to be normal. 10x demand with maybe a 1/10th bump in price... doesn't really seem to add up.
Well you have to take into account who is selling.
I'm pretty sure that central banks will sometimes put some of their gold into the market during tough times in order to try and drive down the price of gold so that they can stabilize their currencies.
So keep that in mind when you're speculating.
Lately I've been reading
Lately I've been reading only about central banks that are not selling anymore gold. I haven't seen any articles about central banks opening up the vaults. Although, I haven't really looked much for that info, either. The central banks manipulating the market that way does make sense, though.
I'm not sure about the "speculation" that you mentioned. Do you feel that gold is high risk?
I think the answer is right here john2k...
Gold traded in London at $913 (656 euros) per troy ounce on Wednesday morning, up from $876.75 late Tuesday.
I'm a girk! Chatta me kort please!
New math!
Rolling money bomb
https://www.coasttocoastm...
So, 10x demand = 1/20th
So, 10x demand = 1/20th increase in price...
Maybe they're just on the front lines of the run on gold and the price will only increase significantly once the run spreads further.