The Germans and the Gold
Germans have a special relationship with gold. The German Central Bank holds the second largest gold reserves globally after the USA. And up to roughly 40% of the Germans hold physical investment gold in the form of bars or coins.
The reasons for the positive attitude of Germans towards gold lie in history. In the 20th century, Germans experienced two currency reforms. In 1924, hyperinflation was finally stopped following a conversion of the old currency to the new one with an exchange ratio of 1.000.000.000 to 1. The second currency reform happened in 1948 following the World War II.
Recently, two representative surveys of German investors were published. One by a German consumer advice center and the other one by ReiseBank, a German bank engaged in precious metals trading.
Key findings of the study by the consumer advice center of the state Hessen are:
- According to this survey, 10% of respondents have already invested in gold.
- Demand for gold investments and other real assets such as real estate is rising.
- 28% of Germans can imagine investing in gold.
- 87% of respondents view gold as a safe investment in uncertain times.
- 67% of respondents saw a risk in private custody , followed by the price volatility of the precious metal, where 44 percent saw a risk.
- 74% of consumers with a positive opinion on gold would consider a supervision of gold investments as important.
Key results from the study by ReiseBank and Steinbeis University are:
- 38% of Germans own physical gold in the form of bars or coins as an investment.
- Gold holdings held by German private individuals have reached a new high of almost 8,700 tonnes, whereof about 55% are held in physical bars or coins.
- The current value of the overall gold holdings is equal to about 375 billion Euros.
- 93% of those who have ever purchased gold are satisfied with their investment, a significant increase compared to previous years.
- 80% percent of Germans, who own investment gold, want to keep their gold, almost as many plan to buy even more gold.
- Value preservation and inflation protection are the main motivators for purchases.
- 95% of the buyers agree completely or at least partly to a safe haven function of gold.
- 90% buyers them also see upside potential for the price of gold.
- 78% of gold buyers say they want to continue buying gold, 26% want to do so in the near future.
More information on the two studies can be found here:
Survey on behalf of the Hessen consumer advice centre, July 2019:
https://www.marktwaechter.de/pressemeldung/gold-als-geldanlage-zieht-eher-juengere
Gold study of ReiseBank, April 2019: