Wednesday, May 12, 2010

Rumor: Germany to Ditch Euro and Return to Mark

From The Prudent Investor(ViaZH)

A web page of precious metals prices provider 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.

It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.
German website had another market-sparkling comment from a forum participant who said has reintroduced a DEM option since about a week. Check it out here.
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.
That this rumor has added more fuel to the gold run just shows how confused markets  are right now.

Folks, Germany returning to the mark is bearish for gold. The German mark would be viewed as an island of stability. The flight from the euro and gold into the mark would be spectacular. German bunds remain a short-term play on this scenario.


  1. "Folks, Germany returning to the mark is bearish for gold."

    Not of the mark is backed by Gold, even partially.

    Expect the unexpected, we live in crazy times.

  2. are you kidding? If Germany dumps the euro it would cause instant mega panic in all of europes fake paper. Gold iS AT all time highs with a defended euro and the promise of never ending bailouts, can you imagine the fear and doubt that woild come out of the largest member of the eu currency family called it quits. Gold would be hotter than ever