No. Surely not. A part finished web page on Kitco yesterday, showed gold valued in Deutsche Marks. This then spread market rumour and conjecture and the gold price spiked again. I cannot believe that the German government is about to scrap the Euro and effectively tear up scores of EU treaties, because of the PIIGS. There would have to be a renegotiation to unwind the dollar and the ECB would have to upsticks from Frankfurt. The whole thing would be a total calamity and an unprecedented disaster.
More worrying is that people actually believe this. My view is that gold has deviated from its normal trading pattern and that this unquestioning spike cannot be trusted. Traditionally, the gold price will increase due to a weaker dollar or impending inflation. Gold is presently going up as the dollar strengthens and inflation is not a factor. This deviation will not be long term. In the short/medium term, there will be a correction followed by a strengthening based upon traditional reasoning and not punting.
A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64.
And there is still more material feeding the rumour. German leftist politician Gregor Gysi announced on TV that there may be an important announcement to be made on Friday. The video below is in German.
In a literal translation Gysi did not say that Germany will reintroduce the Mark but made a curiosity-inspiring statement, saying that there may be some very important news that will be announced on Friday.
A poster claiming to be an employee of Deutsche Bank wrote that the bank received a container full with new German Marks banknotes and coins. He wrote he will publish a picture of the new Marks on Thursday morning. He also said the currency change would happen this weekend with German chancellor Angela Merkel scheduled to give a speech to the nation on Friday evening.
As we see the rapid destruction of the next fiat currency - all of them have failed in the past 3 centuries - rocketing precious metals prices prove once more there is no other safe haven when the going gets really tough.
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