German Investors Choose Gold To Protect Their Wealth – WGC

Germans invested a hefty $7 billion into gold products in 2016, the World Gold Council (WGC) said in its October market update, adding that there is more room to grow.

WGC pointed out that traders in Germany choose to protect their wealth by buying gold, as loose monetary policies around the world and a potential of another financial crisis are worrying the EU country.

Germany’s volatile economic history is one of the underlying reasons behind the country’s appreciation for gold.
“German investors have an acute awareness of the wealth-eroding effects of financial instability. Hyper-inflation in the 1920s lingers on in the collective memory but, perhaps more importantly, German investors have seen fiat currencies come and go: in the past 100 years, Germany has had eight different currencies,” WGC noted.

Now, Germany is a 100 t-plus per year market for bars and coins and a vast gold-backed exchange-traded commodities (ETC) market, according to the latest data provided by WGC.

Anna Golubova
10/6/2017