The majority of German private investors believe that an investment in gold held for at least three years is more promising than any other asset class. This is according to the recently published results of a representative Forsa Institute survey commissioned by the precious metals trading platform pro aurum. As recently as last year, the annual survey painted a different picture, when respondents rated stocks as the most attractive asset class.
30 percent consider gold most promising long-term asset
At 30 percent, gold ranks ahead of stocks in the recent survey. By comparison, only 26 percent of respondents attribute the highest long-term return potential to stocks. Lagging behind at 17 percent of respondents are investment funds, whilst investment forms perceived as safe, such as fixed-term and term deposits, are preferred by 6 percent of respondents. Bonds – often seen as an alternative to gold, particularly by risk-averse private investors – were cited as the best investment option by only 4 percent of respondents.
How are German private investors’ portfolios structured?
While the question regarding the most attractive asset classes was aimed more at market sentiment, the survey also examined the actual investment situation of gold. Currently, 21 percent of German private investors are invested in gold, with a clear upward trend: the number of gold investors has tripled since 2016. This development comes as little surprise, since 80 percent of respondents consider gold to be a good addition to a portfolio. 77 percent regard gold as a safe investment, while 66 percent view the precious metal as a suitable investment for the risk-averse. The potential contribution of gold to portfolio returns is also an important factor: At 60 percent, more private investors than ever cited it among their reasons for investing in gold.