Gold is considered a stable investment – but there is no interest or dividends on it. With the rise in interest rates, some investors are now apparently shifting to savings accounts and call money.
The gold holdings of investors at Deutsche Börse have continued to decrease. As of June 30 of the current year, 227 tons of the precious metal were stored in the company’s vaults in Frankfurt, as the German Stock Exchange announced on Wednesday. That was four tons less than at the beginning of the year. As of June 30, 2022, gold inventories had reached a record high of 242 tons.
Deutsche Börse explains the development by saying that the price of gold has come under pressure as a result of rising interest rates. “The slight decrease in inventory compared to the beginning of 2023 could be due to profit-taking in this context,” explained Michael König, Managing Director of Deutsche Börse Commodities, the issuer of Xetra-Gold.
There is no interest or dividends on gold. Since interest rates on savings accounts and call money have been rising again since last summer, some investors are switching.
Deutsche Börse always puts new gold in its vault when investors purchase the Xetra Gold bond. One gram of the precious metal is deposited for each share certificate. The Stuttgart Stock Exchange (“Euwax Gold”) also offers such an exchange-traded security based on gold. At the end of the first half of 2023, the gold treasure kept by Deutsche Börse for investors had a total value of 12.8 billion euros.
Announcement Deutsche Börse July 5, 2023 Announcement Deutsche Börse January 6, 2023 Announcement Deutsche Börse July 5, 2022 Information on “Xetra-Gold” Information on “Euwax Gold”
Source: Stern
