German Financial Watchdog Says Gold Is Not Money

Friday, August 20, 2010

Can it get anymore idiotic?
The German financial watchdog BaFin has ruled that German mutual fund company DWS may not sell its DWS-Gold fund anymore publicly, because it holds 50% of its funds in gold. BaFin considers gold a commodity of which funds may only hold a maximum share of 30%, Austrian Börse-Express reported.
Maybe these "experts" walk over to the German Bundesbank or the ECB and get a lesson about the #1 item in their balance sheets (hint: look on the left side's top).
The German Bundesbank holds some 3,151 metric tons on gold, which is by far their biggest currency reserve. The ECB would be bankrupt by now, had their gold stash not a value of €352 billion as of last count, despite reckless selling in the last 10 years.
The Bundesbank has not sold any gold under the CBGSA as other not so smart European central banks did, selling the best performing asset of the last 10, 20 or 40 years. Germany's money guardians at the Bundesbank - undeniably the best inflation watchdog before the inception of the Euro - fight every attempt by debt-addicted politicians who want to sell gold for short term financing needs with claws and teeth. They only release a few kilos/tons every year for the legally required minting of gold coins that usually get gobbled up by German small private investors on the day of release.

GRAPH: Gold was the best performing currency/asset/commodity in the last 10 years, trading at €965 at the time of writing.
And you want to make me believe there is no political conspiracy to keep the public away from the only currency that has been voluntarily accepted worldwide in the last 2,800 years?
I am still waiting for "expert" counter-proof that all European fiat currencies have devalued to (near) zero within a human's lifespan in the last 3 centuries.
This "expert" decision comes at a time when Germans, sensitized from hyper inflation in the Weimar Republic when everybody lost everything, have been emptying gold and silver coin shops since 2 years, experiencing waiting times of up to one month until they can collect their real and sound money.
I repeat my stance that this a political cabal against gold because a price of €965 per ounce as of today is a good reminder that the Euro is just a doomed piece of paper waiting for total devaluation because the ECB has been printing too much of it.
In the last 11 years the Eurozone economy grew an accumulated 17% whereas the balance sheet of the ECB roughly tripled. So who is still in the deflation camp?


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