With their own gold coin inventories depleted, the Germans, if not most Europeans now, are buying South African Krugerrands. This may supply them for a while until they also become depleted. Keep in mind that the Germans have some experience with forecasting hyperinflation, collapsing economies, and the approach of dictatorships.

This week in the gold pits will be memorable as the banksters will attempt to stuff gold back into its paper box.

Regards - VHF

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Germans Lead New Gold Rush

Paul A. Ebeling Jnr.

May 16, 2010

German Gold dealers and banks have been desperate to get their hands on Krugerrands, the world’s most popular Gold coin, and have been besieging the South African Rand Refinery all week.

“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.

Frank Ziegler, head of precious metals at BayernLB, one of Germany’s largest wholesale suppliers of gold, says: “People are buying Krugerrands like crazy.” The frenzy pushed gold prices to a nominal high of $1,248.95 a troy ounce on Friday while the euro price surged through €1,000 oz for the first time.

Adjusted for Inflation Gold prices are still a long way from their all-time high above US$2,300 an ounce in Y 1980.

Although coins account for a small part of the market, they are one of the best indicators of investor sentiment towards the precious metal. And right now gold is in massive demand from investors who see it as the ultimate haven at a time of market turmoil and as one of the best hedges against a possible resurgence of inflation.