Stunning Information About German Public Gold Demand

德國投資者在金價下跌三年來, 開始失耐性在沽出手上實金 !
是金價見底之兆 ?

kingworldnews.com

Today King World News is pleased to report on what is happening with gold demand in Germany.  The piece below is from Jürgen Fröhlich, Chief-Editor of goldreporter.de.  Jürgen shares some stunning information about what is taking place in Germany with regards to the buying and selling of physical gold.

 

By Jürgen Fröhlich, Chief-Editor of goldreporter.de

May 21 (King World News) - German Gold Retailers Report Rising Number Of Sellers

German gold retailers are reporting a rising number of customers are selling their gold.  Gold is coming back into the market from these weak hands.  Is this a bullish sign?

“Since about six months we have been noticing higher metal back flow from consumers and retail shops.  Occasionally our purchases are higher than our sales,” said Andreas Heubach, managing director of Nuremberg-based merchant Heubach Edelmetalle.  He added, “Many gold investors have the jitters.  Politicians have done a good job.”....

 

Confirmation comes from two of Germanys biggest precious metal retailers, Pro Aurum and Degussa Goldhandel GmbH:  “Earlier we accounted nine buyers out of ten costumers.  Within the last six month this ratio has changed.  Now 30 percent of our customers are sellers,” Pro Aurum spokesman Benjamin Summa stated.

Wolfgang Wrzesniok-Roßbach, managing director at Degussa Goldhandel is experiencing similar customer behavior:  “During the top months last year we had a ratio of 1:10, currently it is more like 1:3 to 1.5.”  He is referring to sellers versus buyers.  But he stresses, this does not ultimately have to represent a fading interest by gold investors:  “Obviously there are a rising number of customers selling scrap gold.  On the other hand, we might also grab more market share.”  Degussa Goldhandel reported revenue of 1.2 billion Euro for 2013.  This includes sales of UK-based trading house Sharps Pixley, which Degussa acquired in November 2013.

German gold demand peaked in Q4 2008 with 71 tons, and in Q3 2011 with 59.3 tons worth $3.24 billion according to figures by Thomson Reuters GFMS / World Gold Council.  At that time (Q3 2011) Germany ranked #3 worldwide after India (203.3 tons) and China (200.7 tons) in terms of gold bar and gold coin investment demand.  In Q4 2013 German gold demand went down to 27.4 tons worth $ 1.12 billion.”

King World News note:  Jürgen is correct.  In order for the next leg of the bull market to take hold, the weak hands have to sell.  This is a tedious process and hopefully it is nearing an end.  Regardless, it is bullish longer term.