Germany Unwittingly Adopts A Silver Standard Due to Soaring Price

Monday, November 08, 2010

Silver's sky-shot to a new 30-year high of $27.73 per ounce has led to a new phenomenon in Germany. For the first time in history it is theretically possible to buy two last series of silver coins with a denomination of €10 and a silver content of 0.535 ounces for less than the silver equivalent. According to a report in German Daily "Welt" the soaring silver price has forced the German government to bring forward the starting time of sales of the 2 commemorative coins into October to save face. The coins now have a value of €10.66 but have to be sold at the denominated Euro value.
As this story is widely circulating in Germany it can be expected that these coins will be sold out by tomorrow.
Germany's time on a theoretical silver standard - the country was on a bi-metallic standard before the Weimar Republic in the 1920s - won't last long, though.
In order to counter soaring silver prices and keep the denominated value below the silver value the country has announced it will reduce the silver content to 10 grams or 0.3215 ounces in its commemorative silver coin line from January 2011.


Wikinvest Wire