Market Report

Inflation up, interest down – savers face a doubled burden in 2017

The year 2017 starts with bad news for consumers and good news for gold owners: the latest inflation data are surprisingly strong, according to information from the Eurostat statistics, consumer prices rose by 1.1 percent in the past year. And Germany is at the forefront of inflation in Europe: Consumer prices rose by 1.7 percent in December alone.

The precious metal trader “Emporium” responds to the prognoses for gold prices in its “Market & Trends” newsletter.It observed a massive increase in demand for gold.According to the report, the quotation for the yellow metal increased by about four percent in the few days of the new year.Step by step, gold has worked its way back to the  1200 Dollar mark, a plunge below $ 1100 per ounce has become unlikely.

Inflation is now increasing noticeably again after years of rest.Consumers pay extra mainly at the gas station, and they are further burdened by the persistently low interest rates.This is how their saving credits are slowly devalued.

In 2017, according to estimates by Emporium, the European Central Bank will face a very special challenge: the inflation target of 2.0 percent has been reached, but the bond purchase program is expected to continue until the end of December 2017.And now it is said that it could be extended into 2018.According to the report, stock brokers will thus still be able to gamble with the cheap money of the ECB and provoke the next speculative bubble.

About the author

Sebastian Wieschowski