Today, gold is increasingly viewed by German investors as a regular
form of saving: 25% of those surveyed in 2016 said their gold purchase had
been part of a regular review of their investments, while 23% said it was
part of their retirement planning.
We should all learn some German
If we are to believe Western media then this year’s decision by various
central banks to start unwinding easy monetary policy is a signal that the
gold price is set to fall. However Germans gold demand suggests otherwise.
It is clear that German investors are not swayed by the ‘newspeak’ the
rest of the West seems so taken by. Whilst it is undoubtedly the 2008
financial crisis that set off the boom in gold demand, it is the value placed
on gold as a diversifying asset that has sustained the market.
The ratio of investors buying gold bars and coins compared to those
selling is around 10:1. This is despite the economy looking healthy and
unemployment at its lowest since the 1990 reunification.
Clearly, German confidence in the economy is not expressed through their
gold investments any longer. Instead it is their confidence in gold that
keeps the market strong.
Investors and savers would be wise to pay attention to such investment
logic. In countries such as the UK unemployment and wage growth are nowhere
near as desirable as we see in Germany. Additionally, there are increased
further uncertainties.
When the Germans sensed uncertainty following the financial crisis they
did not panic about the global situation. They instead took a long hard look
at their own banking system and began to diversify their savings. As a
result they rediscovered their trust in gold which continues to grow year by
year.
News and Commentary
Gold Prices (LBMA AM)
06 Nov: USD 1,271.60, GBP 969.72 & EUR 1,095.61 per ounce
03 Nov: USD 1,275.30, GBP 976.24 & EUR 1,094.59 per ounce
02 Nov: USD 1,276.40, GBP 965.09 & EUR 1,095.92 per ounce
01 Nov: USD 1,279.25, GBP 961.48 & EUR 1,099.52 per ounce
31 Oct: USD 1,274.40, GBP 964.21 & EUR 1,095.60 per ounce
30 Oct: USD 1,272.75, GBP 966.91 & EUR 1,093.80 per ounce
27 Oct: USD 1,267.80, GBP 968.35 & EUR 1,090.18 per ounce
Silver Prices (LBMA)
06 Nov: USD 16.92, GBP 12.90 & EUR 14.59 per ounce
03 Nov: USD 17.09, GBP 13.05 & EUR 14.67 per ounce
02 Nov: USD 17.08, GBP 12.98 & EUR 14.66 per ounce
01 Nov: USD 16.94, GBP 12.74 & EUR 14.55 per ounce
31 Oct: USD 16.82, GBP 12.72 & EUR 14.45 per ounce
30 Oct: USD 16.74, GBP 12.69 & EUR 14.39 per ounce
27 Oct: USD 16.72, GBP 12.76 & EUR 14.38 per ounce