{"id":59202,"date":"2021-09-03T07:24:10","date_gmt":"2021-09-03T12:24:10","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59202"},"modified":"2021-09-03T07:24:10","modified_gmt":"2021-09-03T12:24:10","slug":"facing-inflation-threat-german-investors-loading-up-on-gold","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59202","title":{"rendered":"Facing Inflation Threat, German Investors Loading Up on Gold"},"content":{"rendered":"

Facing Inflation Threat, German Investors Loading Up on Gold<\/a><\/h3>\n
\"\"<\/a><\/div>\n

While most American investors have faith that\u00a0the Federal Reserve can and will successfully tighten monetary policy<\/a>\u00a0to fight inflation \u2014 or have simply bought into the \u201ctransitory\u201d inflation narrative \u2014 Germans are\u00a0loading up on gold<\/a>\u00a0as a hedge against growing inflationary pressures.<\/span><\/p>\n

Through the first half of the year,\u00a0gold coin<\/a>\u00a0and\u00a0gold bar<\/a>\u00a0demand in Germany hit the highest level since 2009 \u2013 the aftermath of the 2008 financial crisis. First-half demand for bar and coins in Germany increased by 35% from the previous six months, compared with a 20% increase in the rest of the world, according to World Gold Council data.<\/p>\n

Raphael Scherer serves as the managing director at Philoro Edelmetalle GmbH. He told\u00a0Bloomberg<\/em>\u00a0that gold sales for the company are up 25% on what was already a strong 2020.<\/p>\n

We have a long history of inflation fear in our DNA. Now the inflation risk is picking up. The outlook for precious metals is very positive.\u201d<\/p><\/blockquote>\n

Given Germany\u2019s experience with hyperinflation under the Weimar Republic, it comes as no surprise that Germans are wary of inflation.<\/p>\n

Gold investment took off in the country in the wake of the 2008 financial crisis and has been strong ever since. The global recession after the \u201908 meltdown led to extremely loose monetary policy in Germany. The country has been in a negative interest rate environment for several years, and the Bundesbank has done billions in quantitative easing. Two and five-year government bonds have traded at negative yields since 2015.<\/p>\n

The World Gold Council summarized why Germans tend to turn to gold when inflation looms.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Facing Inflation Threat, German Investors Loading Up on Gold While most American investors have faith that\u00a0the Federal Reserve can and will successfully tighten monetary policy\u00a0to fight inflation \u2014 or have simply bought into the \u201ctransitory\u201d inflation narrative \u2014 Germans are\u00a0loading up on gold\u00a0as a hedge against growing inflationary pressures. Through the first half of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,359,374,426,534,538,647,18779],"class_list":["post-59202","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-germany","tag-gold","tag-inflation","tag-monetary-policy","tag-money-printing","tag-precious-metals","tag-schiffgold"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59202","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59202"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59202\/revisions"}],"predecessor-version":[{"id":59203,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59202\/revisions\/59203"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59202"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59202"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59202"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}