GfK, a German market research institute and one of the four largest market research organizations in the world, has conducted a study on consumer confidence in Germany.
 

German consumer confidence research

The study revealed that German consumer confidence is expected to hit a record low for the third consecutive month in September, as households brace for skyrocketing energy bills, GfK reported on Friday. GfK's consumer barometer showed a surprising drop of 5.6 points in July, reaching -36.5. Since its inception in 1991, the barometer—a survey of 2,000 German consumers—has never recorded such a low score.
 
Due to significantly higher costs for energy and food, households lack the financial resources for other purchases, according to GfK consumer expert Rolf Bürkl. Bürkl also warned that, from the consumer's perspective, the risk of a recession remains high.
 
The coming weeks and months are likely to worsen if the supply of fuels, particularly gas, falls short of meeting winter demand. This would further fuel inflation. For a sustainable recovery in consumer confidence, measures to combat inflation are essential. High energy prices and uncertainty about whether energy needs can be met make the likelihood of a recession even greater, the research group noted.
 

Source: www.tradingeconomics.com
 

Dutch consumer confidence

In the Netherlands, consumer confidence is nearly at its lowest recorded level, according to CBS. Consumers were particularly pessimistic about the next twelve months in March 2022. At -39, consumer confidence in March was far below the twenty-year average of -8. The highest recorded confidence level was in January 2000 (36), and the lowest was in March 2013 (-41).
 
In March, consumers were more pessimistic about the economy than they were in February, and willingness to make purchases reached -26, the lowest level in 8.5 years. Consumers were notably more negative about their financial situation over the next twelve months. They also found March to be a less favorable time for major purchases compared to February.
 

Gold

Gold is regarded as a safe haven during recessions. Increasingly, businesses and individuals turn to precious metals to build reliable assets for the future during times of financial turmoil.
 
Since the abolition of the gold standard in 1971, gold has risen by an average of 8% per year. Many investors also choose to include silver in their investment portfolios. Silver can be purchased in greater quantities, and the silver market is much more volatile than the gold market. Investing in silver is therefore considered an attractive option, given its potential for high returns.
 
Disclaimer: The Silver Mountain does not provide investment advice, and this article should not be considered as such. Past performance is no guarantee of future results.