Precious metals - Investors' gold holdings at Deutsche Börse shrink
The amount of gold held in custody for investors by Deutsche Börse has once again decreased. At the end of December 2023, 198.7 tons of the precious metal were stored in the company's vaults in Frankfurt, as Deutsche Börse announced on Thursday. A year earlier, the figure was 231 tons; as at 30 June 2022, holdings had reached a record high of 242 tons.
Deutsche Börse saw the downward trend as a "normal reaction" of investors to the market environment: "The turnaround in interest rates has created new, short-term yield opportunities," explained Michael König, Managing Director of Deutsche Börse Commodities, the issuer of Xetra-Gold.
In addition, the gold price in euros was higher than ever before. At the beginning of December, the gold price peaked at 2135 US dollars or 1950 euros per troy ounce (31.1 grams). Investors may therefore have both taken profits and shifted into overnight and fixed-term deposits in the wake of higher interest rates following the European Central Bank 's (ECB) interest rate turnaround in summer 2022.
Almost eight tons of gold delivered to investors since 2007
Whenever investors purchase the Xetra-Gold bond, the amount of gold in Deutsche Börse's vaults increases. One gram of the precious metal is deposited for each share certificate. Investors can also have their shares delivered: according to Deutsche Börse, investors have made use of this option 1819 times since the introduction of Xetra-Gold in 2007, with a total of 7.9 tons of gold delivered.
At the end of 2023, the gold held in custody for investors by Deutsche Börse was reportedly worth a total of €11.9 billion. The Stuttgart Stock Exchange also offers an exchange-traded security based on gold ("Euwax Gold").
Press releases Deutsche Börse Press release Deutsche Börse 5.7.2023 Press release Deutsche Börse 6.1.2023 Press release Deutsche Börse 5.7.2022 Information on "Xetra-Gold" Information on "Euwax Gold"
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- Michael König, Managing Director of Deutsche Börse Commodities, highlighted that the decrease in gold holdings could be a "normal reaction" of investors to the market environment, as new yield opportunities emerged due to the European Central Bank's (ECB) interest rate turnaround in summer 2022.
- Deutsche Börse is located in Frankfurt, Hesse, Germany, and it serves as a central hub for the storage and exchange of precious metals, such as gold.
- The German Stock Exchange, also known as the Frankfurt Stock Exchange, operates under the aegis of Deutsche Börse and plays a significant role in the trading of precious metal-based exchange-traded securities.
- Germany, being a prominent member of the European Union, has seen a downward trend in gold holdings, following a year-on-year decrease in investors' gold holdings at Deutsche Börse.
- Michael König also noted that the gold price in euros had reached an all-time high at the beginning of December 2023, which may have caused investors to take profits or shift their investments into other yield opportunities amidst higher interest rates.
Source: www.stern.de
