Gold reserves of Xetra-Gold (ISIN: DE000A0S9GB0) fell in the first half of 2024. They now stand at 175.5 tonnes, indicating a contraction of 23.2 tonnes year-on-year.
At the beginning of 2024, reserves were still 198.7 tons of gold. Over five years, reserves have fallen by 18.8 tonnes, while the price of gold per gram in euros has increased by a total of 75%.
“In the last half of the year, there were mainly outflows of gold securities in North America and Europe, as many investors sold their stocks at peak levels. At the same time, the global bull buying frenzy among central banks continues, especially in Asia. This drives the price of gold to new all-time highs – to the detriment of investors, who are now bypassed by the gold price rally.
We see that, especially due to the recent European Central Bank interest rate decision, Xetra-Gold is once again recording increases in reserves. Although a trend reversal is not yet certain, gold remains a long-term portfolio hedge and should make up 5-10% of a retail investor’s portfolio,” says Steffen Orben, CEO of Deutsche Börse Commodities, publisher of Xetra – Gold.
Xetra-Gold is the fifth largest exchange-traded gold (ETC) in the world and the largest in continental Europe with physical backing. Holdings increase each time investors buy shares of Xetra-Gold on the stock market. For each share, exactly one gram of gold is deposited in the central vault. Xetra-Gold’s assets under management amounted to €12.3 billion at the end of the first half of 2024. Xetra-Gold’s investors also have the right to deliver the physical gold represented by their shares.
Since Xetra-Gold was introduced in 2007, investors have exercised this option 1,841 times. A total of 7.9 tons of gold was delivered.
In September 2015, the Federal Fiscal Court ruled that profits from the sale or acquisition of Xetra-Gold are not subject to withholding tax after a minimum holding period of one year. Therefore, the purchase and redemption or sale is taxed in the same way as the direct purchase or sale of physical gold – such as, for example, gold bars or gold coins.