Friday, May 14, 2010

Germans Are Buying Gold Like Mad

Germans, and probably those Germans who lived through that country's last round of hyperinflation, sense what is going to happen with the Euro amid the financial crisis of Greece and across Europe. Heavy demand has been driving up the price of gold and silver.

This report claims
The Austrian mint reported that demand for gold was so heavy that stocks could run out. Much of the demand came from Germany as investors ditched the euro amid fears for the future of the single European currency.

Germans are apparently not real confident about this Greek bailout.
The massive European Commission-IMF loan to Greece and the establishment of a vast fund to rescue other European countries as necessary, did little to restore confidence in the euro. Instead, investors appeared to draw the conclusion that a lot of good money could be thrown after bad euro debts. Their response was to ditch the euro and switch into gold.... Adding to the euro's woes were economists who were warning that, despite its aid package and austerity measures, Greece could still end up defaulting on its debt. The ability of Portugal and Spain to control their debts was also still in question.
Bars of gold are even being sold by vending machines in some places. (Reuters link)