Wednesday, September 25, 2013

Germany and the repatriation of gold : are we close to financial collapse ?

 It seems that the gold price is stabilizing , after touching highs in October last year , with even speculation that we were living in a bubble in the price of this asset. The fact that gold has always been seen as a safe haven has made traditionally during times of crisis , investors seek to protect their investments against a possible loss of confidence of paper money.

Well, this is what I think must have been Germany, which has repatriated negligible amount of gold from Paris and New York. A decision that has been quite unnoticed among the media but in my opinion , is more important than it is being dando.Y is that one might ask , why at this time?

It is not the first time the Bundesbank shows his strong opposition to the ECB's policy of buying bonds , considering a misguided policy that could lead to hyperinflation and loss of confidence of paper money without remedy, with the specter of hyperinflation experienced disastrous as a result of their participation in the First World War . Therefore, the Bundesbank has decided to give a sign of strength and , during the war of currencies, has decided to repatriate some of the gold that you have in France and the United States, specifically 3,400 tons valued at 178.000 million.

There are multiple interpretations of the decision taken by the Central Bank of Germany . They may have wanted to convey an image of strength against investors or orthodox policy , but that has more strength is that fear the situation will collapse and that, in this scenario , countries nationalize the gold that other countries have deposited their Central Banks. In any case , this has been a knock on effect to what they believe could be a financial collapse . Will they happening ? Only time will tell.

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