Bullion dealers from all regions report that gold sales in the German bullion trade market surge since last week.
Suppressed prices for gold and silver are obviously considered buying rates by German investors. The German precious metals trade reports a surge in sales.
“For about a week we record considerably increased turnover again, which is now on previous year’s level, so it doubled compared to the recent months.”, Rene Lehman from the internet dealer Münzland in Dresden told Goldreporter.
“We can confirm that customer demand has considerably increased in the recent days.“, said Dominik Kochmann, CEO of ESG Edelmetalle in Rheinstetten.
Daniel Marburger, Director of Coininvest GmbH in Frankfurt/Main also stated that „In the past seven working days we have seen an extreme surge in demand.”.
Christian Brenner, Chief Executive of Philoro Edelmetalle GmbH: “Already in August we noticed an increase on orders compared to the previous months, but September… September beats it all. From a German viewpoint it’s the strongest month of 2014.”. At their head office in Austria they also register an “overproportional high level” of revenue.
The recent acceleration in demand didn’t pass by Degussa Goldhandel either. “With reference to the regular business with investors this month will certainly be the best so far YTD.”, CEO Wolfgang Wrzesniok-Roßbach told Goldreporter upon request.
A response from the precious metals dealer Pro Aurum in Munich was still pending by the time this article was published.
What is being purchased?
Predominantly gold. At Münzland’s 60 percent of the business are appointed to standard gold coins, in particular 1 oz. Maple Leaf and Australian Nugget. Silver represents only 35 percent of sales, Rene Lehman says, mainly including Maple Leafs and the new Australian Lunars. The rest was mainly invested in 50 and 100 gramme gold bullion.
Furthermore, Coninvest reports a brisk demand for half-antique and historic gold coins. Apart from British Sovereigns and Swiss Vrenelis there also is demand for Willem- and Wilhelmina-Guilders from Netherlands. According to Daniel Marburger this is partially granted to the design of their new webshop. 20 gramme gold bars also made very good sales.
At Philoro gold sales prevail as well. Their own brand gold bars at 250, 100 grammes and 1 oz., as well as Krugerrand gold coins are the most popular investments. In Austria the Vienna Philharmonic gold coin is their best-selling investment product.
At Degussa-branches the main demand is gold as well. According to Wolfgang Wrzesniok-Roßbach the Krugerrand has a market share of 50 percent among gold coins. Besides that, they are pleased with the success of their Degussa Gold- and Silver-Thaler. Although these are more interesting for numismatists, some of the limited editions are already sold out. Sales in Silver haven’t considerably recovered this year though.
Why do Investors buy now?
Dominik Lochmann explains: “On the one hand there is the historical low level of interest rates, which open up alternatives for investments, especially with the current currency policy of Mister Draghi. On the other hand there are the three major crises receiving full coverage in the media, Ukraine, ISIS and Ebola, which cause higher wants for security on investors. On top of that, especially in comparison to the increased broad money, the rather reasonable gold and silver prices are quite an invitation to enter the market or stock up.”
The boss of Degussa has a similar perspective: „The increase this month was certainly based short-term on the latest decline in prices. Clients are very well informed about prices nowadays and take advantage of slumps to buy.”
Since the yearly high at $ 1,380 in March the price of gold recently declined to a new yearly low at $ 1,215 (Deutsche-Bank-indication), which corresponds to a 12 percent decline. Compared to that, the consolidation in price of 5 percent for the same time period in Euros appears to be rather moderate.
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