05/17/10 Stockholm, Sweden – Over the past few days multiple sources are reporting that German banks are getting cleaned out of their gold bullion supplies. They are being forced to seek additional stock outside of Europe, in particular from South Africa and its popular krugerrand coins.
From the Financial Times’ coverage of “Germans lead gold rush frenzy”…
“Panicking German dealers and banks have been desperate to get their hands on krugerrands, the world’s most popular gold coin.
“‘We have some extraordinary sales to German customers,’ says Deborah Thomson, the Rand treasurer. The refinery, which usually sells 2,000 coins to each customer at a time, says that last week it received an order from one German bank for 30,000 coins. Another bank requested 15,000 coins.”
These increased sales are taking place even as gold has exceeded the €1,000 price level for the first time in the history of the European currency… it’s not exactly getting in on the ground floor.
According to BND.com:
“Some analysts are even anticipating that gold will hit $1,400 in the near future – a far cry from two years ago when $1,000 for an ounce was considered as realistic as finding the lost city of El Dorado.
“‘We’re going to see some explosive movement in gold,’ said John March, chief technical officer for gold trading firm Superior Gold Group in Santa Monica, Calif. ‘We’re looking at something that doesn’t have a lot pushing it down but a lot pushing it up.’
“Over the next eight years, March expects to see an average annual boost of 20 percent to 25 percent in the price of gold.”
How gold moves from its current perch is the subject of great debate. It’s risen quickly and steadily and the most conservative option would be to wait for a pullback. At the same time, the global fiat currency presses are working at full steam. The long run case for gold still looks attractive. Regardless of what happens in the short run, gold is making for a fascinating parallel story to the fluctuating euro. It’s one we’ll watch closely.
Best,
Rocky Vega,
The Daily Reckoning
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
The Daily Reckoning is your premier source for making sense of the news Washington and Wall Street generate. Each business day, The Daily Reckoning calls on its stable of world-class writers and thinkers to show you how to get ahead.
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“Over the next eight years, March expects to see an average annual boost of 20 percent to 25 percent in the price of gold.”
hahahahahaha
Where do you get these muppets from??!!! My gold has gone up about that since January alone??!!
$1400 by this time next month and $1650 by August…
Got any gold yet??!!