Germany's fascination with gold. Holding steady amid market highs
Despite a recent slight decline in Germany's gold reserves, the allure of this metal continues to soar. This year, Germany registered a record amount of gold, totalling 9,034 tonnes. It's seen as a secure investment, especially during uncertain times.
German citizens' private gold holdings, including jewellery, gold bars, or coins, have recently experienced a minor decrease. Nevertheless, they remain impressively robust.
A study conducted earlier this year by scientists from the Steinbeis-Hochschule in Berlin on behalf of the Frankfurter Reisebank revealed that Germany possesses 9,034 tonnes of gold.
Gold market prices remain stable and elevated, with significant increases observed in recent months. This upswing has led to heightened investor activity, as many opt to sell their holdings to capitalize on the price gains.
The analysis indicates that because of the high gold prices, more people are selling the metal than buying it. At the time of the study, on January 29, 2024, Germany's gold reserves were estimated to be worth approximately 750 billion euros.
The study illustrates that investors purchasing gold (38 per cent) do so mainly to safeguard against inflation and crises, including armed conflicts.
From the beginning of the year until the end of April, gold's price surged to $2,431 per ounce (31.1 grams). Presently, the price hovers around $2,300 (approximately £1,923). Despite this, three-quarters (75.2 per cent) of gold investors expressed their intent to continue acquiring this precious commodity.
