FRANKFURT (dpa-AFX) – After the sharp rise in the price of gold in 2024, many investors are cashing out. The stock of gold held with the Deutsche Borse for the stock exchange-traded Xetra-Gold fell significantly at the end of the year to 166.5 tonnes. This is around 32 tonnes less than at the end of 2023, indicated the Dax group. “It is especially in recent months that the high price of gold, among other things, has prompted sales,” explains Steffen Orben, Managing Director of Deutsche Borse Commodities GmbH, issuer of Xetra-Gold.
Xetra-Gold is a physically guaranteed security. Every time investors buy the bearer bond, the gold stock increases in Deutsche Borse’s central vault: one gram of the precious metal is deposited for each share certificate. Xetra-Gold is, according to the company, the largest European gold security with physical deposit.
The price of gold hits the ceiling in 2024
Last year, gold allowed investors to make huge profits. The price of gold rose about 27% in the space of twelve months, reaching a record high of $2,790 per ounce (about 31.1 grams) in late October, before retreating somewhat. This boom can be explained by the numerous crises in the world, particularly in the Middle East, and by the prospect of a reduction in interest rates from central banks. Gold does not earn interest or dividends. Therefore, falling government bond yields, for example, strengthen demand for the precious metal.
While Deutsche Borse’s gold stock declined, Xetra Gold’s assets under management increased sharply following the price rise: it increased by 13% compared to the previous year to reach around 13.5 billion euros.
-Gold, a popular crisis currency
For investors, gold securities are a popular alternative to gold bars and coins. The Stuttgart Stock Exchange also offers an exchange-traded security based on gold (“Euwax Gold”). Many asset managers recommend gold as a portfolio complement and as protection against crises /als/DP/jha.
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