(DCNF)—Germany fully bought into the green energy transition, but its economy is now showing serious signs of weakness as a prolonged energy crisis runs its course.
The country is aiming to have its energy supply and demand reach “net-zero” emissions by 2050, relying on sources like wind, solar and hydrogen fuels after former Prime Minister Angela Merkel decided in 2011 to eventually shutter the country’s nuclear power plant fleet. Despite the German government’s regulatory and spending blitz to usher in the green transition, the country is not on track to meet its climate goals, but its decision to rely on intermittent green energy generation has contributed to an ongoing energy crisis that is crippling its economy.
“Hollowing out the economy is not benefiting the German people, nor is it helping climate change,” Diana Furtchtgott-Roth, Director of the Center for Energy, Climate and Environment at the Heritage Foundation, told the Daily Caller News Foundation. “It is not reducing emissions, because manufacturing is being shifted to other nations, like China and India, that use dirtier energy. The German economy is going down, and their people do not have the jobs and economic opportunities that they used to.”
Germany Rules Out Keeping Nuclear Power On Despite Energy Crisis https://t.co/dYUfJrJhQK
— Daily Caller (@DailyCaller) September 8, 2022
Germany ultimately closed the last of its nuclear power plants in April 2023. Several months later, the German government announced that it would activate coal-fired power plants to ensure adequate supply through this winter.
The signs of Germany’s economic withering are numerous, perhaps most visible in the fact that it shrank in 2023 after growing by less than 2% in 2022, according to Euronews. The country is facing the high borrowing costs and inflationary pressures that are dogging many of the West’s economies, but sticky energy inflation remains the key factor in the country’s economic malaise, both for consumers and corporations, according to Reuters.
In the third quarter of 2023, the German electricity sector generated 20% less power than it did in the same period in 2022, according to the GMK Center. On the demand side, Germany’s 2023 energy consumption was about 8% lower than 2022’s levels, and about 25% lower than energy consumption in 1990, according to Clean Energy Wire.
The country’s consumer price index for electricity is nearly 50% higher in December 2023 than it was in January 2021, according to data from Eurostat. Executives of industrial companies are warning that high energy costs are making their continued presence in Germany potentially untenable, while many firms are beginning to move their operations out of Germany, according to Politico.
Germany’s November 2023 manufacturing Purchasing Managers’ Index (PMI), which is “a gauge of overall business conditions based on measures of new orders, output, employment, supplier delivery times and stocks of purchases,” indicate that executives across the entire sector are decidedly pessimistic about their future prospects and the vitality of the sector, according to S&P Global. It is difficult to understate the potential ramifications of the decline of German manufacturing given that the country earned its reputation as Europe’s economic powerhouse primarily on the strength of its manufacturing sector, which has typically provided about 20% of the country’s annual gross domestic product since 1991, according to World Bank data analyzed by Macrotrends.
Germany’s manufacturers are not the only ones feeling the pinch. German farmers recently engaged in a weeklong wave of protest across the country, voicing their anger about the government’s proposal to plug a massive budget gap by eliminating subsidies that allow them to stay in business.
The budget gap especially threatens climate-related initiatives, many of which still require government subsidies to have a chance at succeeding even after the government has already spent hundreds of billions of euros on the green agenda, according to The New York Times.
Meanwhile, the country’s residential real estate prices have fallen precipitously over the past year or so, according to Reuters. The third quarter of 2023 saw residential real estate prices dropped by 10% year over year, a development which Reuters describes as a “grim sign” for the German economy.
While Germany’s energy crisis was many years in the making, Russia’s ongoing war with Ukraine kicked it into overdrive. Before the war started, Germany had become reliant on cheap Russian natural gas, even amid warnings — including one from former U.S. President Donald Trump — that depending on Russian exports would afford Russian President Vladimir Putin significant geopolitical leverage over Europe.
The conflict is still raging, and it remains unclear when it will end or what the terms of concluding the war will look like. One such sticking point is whether or not Russia and Ukraine will be able to renegotiate a natural gas transit deal to replace the current agreement, which expires in 2024, according to Bloomberg News.
The current Russia-Ukraine transit agreement allows for Russian gas to flow through Ukraine and into other European countries in exchange for Russian fee payments to Ukraine, according to Bloomberg. Without a new deal in place, Germany and Western Europe may be at risk of enduring another supply pinch, prompting German Economy and Energy Minister Robert Habeck to warn in June that “there is no secure scenario for how things will turn out” for the German economy if it is unprepared for another round of supply disruption.
The meager economic outlook and energy crisis is also shaking up German politics. The Alternative for Germany (AfD), the country’s leading right-wing populist party, has seen its popularity more than double since the Russian invasion commenced, according to polling data aggregated by Politico. About 80% of the German population is unsatisfied with the performance of the current coalition, and more than half of the country wants elections to occur before 2025, their currently scheduled date, according to Bloomberg News.
The German Federal Ministry for Economic Affairs and Climate Action did not respond immediately to a request for comment.
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Why Bullion Beats Numismatics and Collectible for Your Safe or IRA
Precious metals continue to attract Americans seeking reliable ways to protect their wealth amid inflation, geopolitical risks, and stock market swings. Whether stored in a home safe or held inside a self-directed IRA, physical gold and silver deliver tangible value that paper or digital assets often lack. Yet investors must choose carefully between bullion—pure bars and coins valued mainly for their metal content—and numismatics or collectibles, where rarity, history, and collector demand heavily influence pricing.
Advisor Bullion serves as a dependable source for straightforward, high-quality bullion. The company specializes in physical gold, silver, platinum, and palladium, emphasizing transparent pricing and products that deliver maximum metal content for every dollar spent. This approach makes it ideal for both personal holdings and retirement accounts.
Bullion consists of refined precious metals in standard forms like one-ounce coins (American Gold Eagles, Silver Eagles, Canadian Maple Leafs) or bars. Their value tracks closely to the current spot price of the metal. A typical gold bullion coin trades near the live gold spot price plus a small premium. This structure keeps costs clear and predictable.
Numismatic coins and collectibles add substantial value from factors such as age, rarity, minting errors, or historical significance. A pre-1933 U.S. gold coin or graded proof piece can carry premiums of 30%, 50%, or even 200% above melt value. While this appeals to hobbyists, it creates complexity. Pricing depends on subjective grading, collector trends, and auction results instead of daily spot prices.
For investors focused on wealth preservation and retirement security rather than building a collection, bullion often delivers better results.
Lower Costs and Better Liquidity for Home Storage
When keeping metals in a home safe or private vault, liquidity and efficiency count. Bullion offers clear benefits:
- You acquire more actual gold or silver per dollar invested. Numismatics divert a large share of your money into rarity premiums and massive sales commission, reducing your metal exposure.
- Selling bullion involves tight bid-ask spreads, so you recover nearly full spot value with minimal fees. Collectibles require finding the right buyer and may sell at a discount if demand for that specific item weakens.
- Bullion prices remain transparent and update with global spot markets. You can track gold near current levels or silver accordingly and know exactly where your holdings stand. Numismatic values are priced by the Gold IRA companies with hefty margins applied.
- Standardized coins and bars store efficiently and divide easily for partial sales. Rare coins often need protective slabs and controlled conditions, adding hassle and expense.
- Bullion enjoys worldwide acceptance. A 1-oz Gold Maple Leaf or Silver Eagle sells quickly to dealers anywhere. Niche numismatic pieces may appeal only to limited buyers, slowing liquidation when speed matters.
In times when quick access to value becomes important, bullion’s simplicity stands out.
Stronger Fit for Precious Metals IRAs
Precious metals IRAs continue gaining traction as investors diversify retirement portfolios beyond stocks and bonds. IRS rules permit certain bullion products in self-directed IRAs if they meet purity standards (.995 fine for gold, .999 for silver) and are held by an approved custodian. Eligible items include American Gold and Silver Eagles plus many generic bars and rounds from recognized mints.
Numismatic and most collectible coins generally face heavy scrutiny from custodians due to valuation disputes and elevated markups. These higher premiums mean less actual metal ends up working inside the account.
Bullion avoids these issues. Its value links directly to verifiable spot prices, which simplifies reporting and lowers the risk of regulatory challenges. More of your IRA contribution purchases real metal instead of dealer profits or speculative upside. Over time, owning additional ounces that appreciate with the metal itself can create meaningful outperformance compared with high-premium alternatives that deliver fewer ounces.
Regulatory guidance from the CFTC and state securities offices repeatedly cautions against aggressive sales of expensive numismatics or “semi-numismatic” coins for IRAs. For retirement planning, transparent bullion from established providers reduces risk and aligns better with long-term goals.
How to Get Started with Bullion
Begin by clarifying your goals. Are you protecting savings in a safe, or moving part of a retirement account into a precious metals IRA? Focus on the number of ounces you can acquire at current prices rather than chasing marked-up collectibles.
Diversify sensibly: use gold for core preservation and silver for its blend of industrial and monetary qualities. Mix coins for easier divisibility with bars for lower per-ounce costs on larger buys. Arrange secure storage—whether at home with proper insurance or through professional facilities.
As economic uncertainties linger and faith in conventional assets erodes, bullion continues proving its worth as a dependable store of value. Its direct approach avoids the hype that sometimes surrounds collectible markets and keeps the focus on the metal itself.
For investors prepared to strengthen their portfolios, Advisor Bullion supplies the expertise and selection needed to acquire high-quality bullion efficiently. Whether building personal holdings or integrating metals into an IRA, their emphasis on transparent, investment-grade products helps secure more ounces today that support greater financial security tomorrow. In a complicated financial landscape, bullion’s clarity and reliability make it the smarter foundation for protecting what matters most.