German physical gold purchases increase to a decade high
(Kitco News) - Germany has always been the biggest physical gold buyer in Europe (traditionally). In the first half of the year gold demand has hit its highest level in a decade. Data from the World Gold Council (WGC) showed H1 demand for bar and coins in Germany increased by 35% from the previous six months, compared with 20% in the rest of the world.
Even as in other Western markets have also been strong, Germans, in particular, are looking at the yellow metal as a hedge against rising inflation and dealers say business remains good.
Raphael Scherer, a managing director at metals dealer Philoro Edelmetalle GmbH said “We have a long history of inflation fear in our DNA. Now the inflation risk is picking up,”. Its gold sales are up 25% on what was already a strong 2020. “The outlook for precious metals is very positive.”
Last month, the reopening of the economy saw German inflation jump to the highest in more than a decade. Negative interest rates in Europe are also making non-yielding assets like gold more attractive, Scherer said.
H1 demand for bar and coins in Germany jumped 35% from the previous six months, compared with 20% in the rest of the world, WGC data show.
Alexander Zumpfe, senior trader at refiner Heraeus Metals Germany GmbH & Co. KG stated gold has “always played a certain role among German investors,”. He added, “With the increased buying interest in recent years, however, it has become even more present.”.