For today’s Daily Dose of Business News, I’ll be writing about a CNN Money article with the title “Germany reclaims gold hidden from Soviets in New York vaults“
The article is good news to Germans around the world. It seems that the future generations of Germans are in good hands with the move. It brings in a lot confidence and stability on the market because gold bars can easily be traded worldwide.
Germany’s Government is aiming to boost the morale and confidence of their countrymen in this move. I am now wondering why would the Germans have the need for such a morale booster. Are the people feeling the effects of the #Brexit or is it possible that their people don’t have a trust in their Government?
If I am a German, I would be happy upon hearing the news. This would mean that the country is paying off the debts in international banks (if they have any), and that the country is secure enough from terrorist attacks for the leaders to take such a bold move without thinking of possibilities of attacks. The move would only be bad if and only if (possible, but least likely to happen) Germany is preparing for war. I said least likely to happen because to assure their allies and the world, Germany would not withdraw all their gold bars from New York, they plan to remain some gold bars in New York and London.
Withdrawing the gold would not affect either the Euro or the Dollar negatively since after the Cold War, gold was decoupled with the dollar. Thus, if ever it might affect the Euro, it would only mean that the Euro’s value would continue to grow because those around 600 tons of gold would be an addition to Germany’s riches.
Wow, 600 tons of gold, and how many tons of gold has been harvested around the world already? I really do wonder. How many tons remain in the bank and how many are being made as jewelries? I cannot quantify it, but there’s one thing for certain, German’s are definitely in good hands.