Precious metal: Deutsche Börse: Investors’ gold holdings fall significantly

The gold holdings of investors at Deutsche Börse continue to fall significantly. As of June 30 of the current year, 175.5 tons of the precious metal were stored in the company’s vaults in Frankfurt, Deutsche Börse announced. That was 23.2 tons less than at the beginning of the year (198.7 tons). Over five years, the holdings have fallen by 18.8 tons, while the gold price per gram in euros has risen by 75 percent overall, Deutsche Börse further explains.

In the past six months, there were outflows of gold securities, particularly in North America and Europe, as many investors sold their shares 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 spree among central banks continues unabated, especially in Asia.” This is driving the price of gold to ever new highs – to the detriment of investors who are now being bypassed by the gold price rally. The price of gold in US dollars has risen by a good 20 percent within twelve months, and by around 13 percent since the beginning of the year.

Gold pays neither interest nor dividends. Since interest rates on savings accounts and call money had risen again after the long period of low interest rates, some investors had shifted their money around. Precious metals have recently experienced a boom in light of the many crises worldwide and the prospect of central banks’ key interest rates tending to fall.

Deutsche Börse puts new gold into its vault whenever investors purchase the Xetra Gold bond. One gram of the precious metal is deposited for each share certificate. The Stuttgart Stock Exchange also offers such a gold-based exchange-traded security (“Euwax Gold”). At the end of the first half of 2024, the gold holdings held by Deutsche Börse for investors had a total value of 12.3 billion euros.