Precious metal - Deutsche Börse: Investors' gold holdings fall significantly
The gold deposits of investors and investors at the German Stock Exchange continue to decline significantly. As of June 30th of the current year, the company had stored 175.5 tons of gold in its vaults in Frankfurt, according to the German Stock Exchange. This was 23.2 tons less than at the beginning of the year (198.7 tons). Over a five-year period, the stockpile had decreased by 18.8 tons, while the gold price per gram in Euro had risen overall by 75 percent, the German Stock Exchange explained further.
In the past six months, there have been outflows of gold-backed securities mainly in North America and Europe, as many investors sold their holdings at record highs, said Steffen Orben, Managing Director of Deutsche Börse Commodities, the issuer of Xetra-Gold. "At the same time, the global gold buying craze by central banks is unbroken, especially in the Asian region." This drives the gold price to new record highs – to the detriment of investors, for whom the gold rally is now passing by. The gold price in US dollars has risen by about 20 percent in just twelve months, and by around 13 percent since the beginning of the year.
Gold offers neither interest nor dividends. With interest rates on savings accounts and checking accounts having risen again after the long period of low interest rates, some investors shifted their money. Recently, precious metals experienced a surge in value due to the many crises worldwide and the prospect of persistently low interest rates from central banks.
The German Stock Exchange stores new gold in its vaults whenever investors buy the Xetra-Gold bond. For each bond certificate, one gram of gold is deposited. A gold-backed paper traded on the stock exchange, such as Euwax Gold, is also offered by the Stock Exchange Stuttgart. According to the statements, the gold stockpile held by investors from the German Stock Exchange had a total value of 12.3 billion Euros at the end of the first half of 2024.
- Despite the significant decline in gold deposits in Frankfurt, Germany, the gold price per gram in Euro has increased by 75% over a five-year period.
- Steffen Orben, Managing Director of Deutsche Börse Commodities, noted that there have been outflows of gold-backed securities primarily in North America and Europe.
- The German Stock Exchange, specifically its Frankfurt location, serves as a storage facility for investors' gold, with each Xetra-Gold bond certificate representing one gram of gold.
- Central banks in the Asian region continue to show a strong interest in gold purchasing, contributing to the rising gold price and potential disadvantage for investors in regions like North America and Europe.
- The value of the gold stockpile held by investors from the German Stock Exchange reached a total of 12.3 billion Euros at the end of the first half of 2024.
- Gold as an investment option does not offer any interest or dividends, and some investors may opt to shift their money to savings accounts or checking accounts with increased interest rates.
