|German Investors Piling Into Gold On Threat Of Greek Default |
Los Angeles CA, (Tangible Investments) - by James O'Dell - Gold extended gains for a fifth straight day in early morning dealings on Monday after posting its best weekly advance in four months on Friday when the yellow metal added $3.10 or 0.25 percent to finish the week higher at $1,224.50 an ounce following a spate of disappointing economic data that pushed further into the future any expectations of rate hikes by the Fed. Silver climbed $0.08 or 0.46 percent to end the week at $17.56 an ounce, while the Gold/Silver ratio, the measure of the number of Silver ounces needed to buy an ounce of Gold, edged lower to 69.73.
The week began with the fallout from a disappointing U.S. jobs report for April and a negatively revised March report showing the worst jobs gains since June 2012. Dr. Marc Faber, editor of the Gloom, Boom and Doom report, weighed in on the Greek bailout crisis as euro zone finance ministers met in Brussels on Monday. Dr. Faber suggests that the European Union (EU) will threaten and cajole Greece to the final moment of negotiations in order to secure the best terms, but in the end will most likely be left with no other recourse than to bail out Greece once again, delaying the inevitable for a bit longer.
“It’s about the ECB and European banks that have lent money to Greece and if Greece defaults would have to take a huge loss and write-off. So they will lend more money and kick the can down the road,” said Faber. Dr. Faber went on to say that an even more important reason to keep Greece in the single currency, is Greece’s strategic location as a gateway from the Black Sea to the Mediterranean.
In China, regulators said last week that the nation will seek to transform the yuan into a global reserve currency by adopting IMF standards to calculate its balance of payments data. The State Administration of Foreign Exchange (SAFE) announced that the change was required if China wants the IMF to include the yuan in the fund’s Special Drawing Rights (SDR) basket. Since under the new standard, China’s reserve assets will be accounted for under the financial account, it has led many to believe that China will now be forced to finally divulge the true size of its Gold reserves.
Meanwhile, the threat of a Greek default has seen German investors piling into Gold bars and coins in the first quarter of 2015, according to latest figures from the World Gold Council (WGC). German purchases of Gold coins and bars jumped by 20 percent to 32.2 tons in the first quarter, the highest rate in a year, as uncertainty grew over European Central Bank (ECB) policy and the impasse between Greece and its creditors.
“This was the strongest start in Europe for Gold coins and bars that we have seen since 2011,” said Alistair Hewitt, of the WGC. “German investors are fretting over the ECB, Greece and Ukraine. But Germans aren't the only Europeans to have boosted their purchases of the yellow metal, demand jumped by double digits in France, Switzerland and Austria during the first quarter.
It's important to protect your hard earned wealth during these times of economic and geopolitical uncertainty, and at Tangible Investments (learn about us here), it doesn't matter whether you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts.
Take a moment and browse our vast selection of valuable collectibles, then call Toll Free 1.800.741.5014 today and let the helpful staff at Tangible Investments assist you in your next purchase or sale. Tangible Investments is the leading buyer of rare, Gold and Silver coins, art, antiques, diamonds, sterling and flatware. We also loan against anything of value and offer more money at half the loan cost.