Posted on 12/12/2012 5:33:03 AM PST by DeaconBenjamin
Like Scrooge McDuck or the dragon Smaug in J. R. R. Tolkien's The Hobbit, Germans are gathering vast quantities of gold - a study showed that the average German owns close to €6,000 worth of the shiny metal.
Even though Europe's largest economy has weathered the world economic crisis relatively well, Germans have still been extra jittery about their savings, a study by the Steinbeis Research Center for Financial Services in Berlin revealed.
Around 32 percent of the gold owned in Germany in the form of bars and coins was accumulated since the financial and economic crises began, the study concluded.
Commissioned by precious metal trading group Heraeus, the study also found that people with surplus cash are becoming gold-greedier. The number of Germans with a net monthly income over €4,000 who say they intend to invest in gold has doubled in the current year.
On average, every German owns around 117 grammes of gold, comprising 55 grammes of jewellery and 62 grammes of bars and coins, the study, which surveyed 2,000 people, found. Taken together with gold securities, the average German owns some €5,750 of gold.
Including the German federal bank's gold holdings, that means the Germans have gathered seven percent of the world's gold.
Gold is considered a safe investment in times of economic stress because the precious metal is thought to keep its value over a long period, can be collected and kept safe personally, and can be traded easily.
Some 69 percent of Germans have invested in gold, and roughly half of these keep at least some the metal in their homes. Around 47 percent keep their gold in a private locker in a bank. Around nine percent, meanwhile, keep some of their precious metals with a specialized gold trader.
Rich people are more likely to invest in gold bars, while those on lower incomes are more likely to buy gold coins.
Some dealers offer low prices with high shipping. Some offer higher prices with low shipping. Some only accept large orders (thousands of dollars). Delivery offers the risk that someone will recognize the name of the dealer sending you packages. I recommend local stores where feasible.
I wouldn’t call 6000 Euros “hoarding.”
How was the Reichsmark backed with gold? Could you exchange Reichsmarks for gold in a bank?
I do know they minted silver Reichsmarks which were in common circulation. I assumed that had a lot to do with people's willingness to attribute value to the Reichsmark.
I know that West Germany also produced and circulated silver 5 mark pieces until the 1970s.
The blogger from Argentina (ferfal?) has stated that when the economy collapsed there, exchanges in junk jewelry were more common and preferred to coins and bars. I don’t know if the same would hold true in the US, particularly since our use of silver coins was more recent than in Argentina.
I read of the experience of a young German woman whose family operated a store during the hyperinflation. Eventually they marked the prices in British pounds (rather than constantly reprice the goods) and put the current exchange rate for marks on a chalkboard near the cash register.
BRAVO! That is the right answer.
There are reputable places online to buy gold and silver. Ebay is not one of them. I have bought all of mine through an online broker and I am very satisfied.
I just came across this story this morning:
http://www.peakprosperity.com/forum/how-much-gold-and-silver-do-i-need/36682
I find that buying gold and silver online can be expensive, and you cannot get your hands on it as quickly as I would like. It takes time to get stuff processed and mailed to you.
I have not been able to find a decent dealer in my area. The storefront guys are pirates, and the coin dealers are as unhelpful as a gun store owner.
Storage is also an issue. If you are buying gold, you probably do not trust banks, so a safe deposit box might not be practical. So an in-home safe or storage option should be considered.
If you have any specific questions that you do not want published to the world, feel free to frepmail me.
my my...somebody’s getting teed off aren’t they?
It was sleight of hand. Initially, the Reichsmark was backed by the Rentenmark, which in turn was backed by gold. Then because of the depression, the backing was replaced with a peg to gold.
The Nazis then printed far more money than the peg would allow, to buy arms, then used wage and price controls to try to keep inflation under control. They also permitted the enlargement of the black market to take up the slack.
And as they invaded other countries, they tried to strip them of wealth as well. Added together, they were able to keep something of a lid on things.
You’re right, they are Englehard rounds. I talked to my brother in law about it, he was some MSD (Medium Swinging D*) at Englehard before the BASF buyout. They made blanks but weren’t sold to the public, they were sold to Mints.
“If you can’t pick it up and run with it, you don’t really own it.” Robert Heinlein.
From what I’ve been reading today, you’re more likely to get ripped off buying foreign coins or bullion.
You can buy directly from the U.S mint, but they seem to be premium prices, way over spot.
I found a site from a list provided by the U.S mint for reputable coin sellers, apmex ... who’s prices seemed reasonable ranging from 3% over spot to 7% for American Eagle series. Shipping and insurance is about $18 per $1000, they ship USMAIL to PO boxes, physical addresses for other shipping methods.
I’m just starting so I’m sticking with American Eagle Series and Englehard bullion.
you should have part of your assets in gold — perhaps 8 months worth of spending to be very safe.
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