Thursday, 24 April 2014

LN: Worried Czechs invest in gold en masse

ČTK |
12 December 2012

Prague, Dec 11 (CTK) - Czech gold sellers are having golden times that is just as a bad piece of news as that about increasing unemployment even though it may not seem so at first sight, Lenka Zlamalova writes in daily Lidove noviny (LN) today.

Unemployment in the Czech Republic grew from 8.5 percent in October to 8.7 percent in November.

Czechs will this year buy three to four tonnes of gold for some three to four billion crowns, LN writes elsewhere, adding that the "gold rush" broke out already last year when a similar amount was sold.

Zlamalova writes that the expensive metal is being bought by more and more people starting with lower middle layers up to billionaires.

It means in fact that they are afraid of the future developments and do not invest money, but only deposit it in a safe place, Zlamalova writes.

There are moments when it is possible to make healthy profits on gold because it is so cheap that it is justified to expect an increase in its price. But now, the situation is just opposite, Zlamalova writes.

The price of gold is a good barometer of the social atmosphere. Everyone in a difficult situation may see a greater value in certainty and calm than in profit, but for society the gold rush is an illness, Zlamalova writes.

The billions of crowns spent on gold are dead money that in a better atmosphere could be invested in things that are still unimaginable today such as iPads years ago, Zalamoval writes.

LN writes that banks have also started to offer investment gold to their clients.

Since July when the Ceska sporitelna (CS) savings bank launched its offer, "clients have bought investment gold worth almost 75 million crowns," LN quotes CS spokesman Jan Holinka as saying.

Banks also profit from the "gold boom" offering their safes where those who do not want to have gold at home for security reasons can store their precious metals, LN writes.

($1=19.517 crowns)

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