After gold price recovery: Rising demand for Xetra-Gold

The gold price, which has been rising again since the end of September, has also significantly increased the demand for Xetra-Gold (ISIN: DE000A0S9GB0). The holdings of Europe's leading gold-backed security have exceeded the 180-ton mark. The assets under custody currently amount to 6.2 billion euros.

"The gold price ranged in midsummer for a long time around 1,200 US dollars per troy ounce, a psychologically important mark - because that was the lowest level for almost two years," explains Michael König, Managing Director of Deutsche Börse Commodities GmbH, the issuer of Xetra-Gold. "In recent weeks there has been a clear correction on the stock markets due to emerging geopolitical risks and the return of inflation. As a result, the gold price has also recovered and the demand for gold funds has risen again. We are also experiencing this with Xetra-Gold."

At the beginning of the year, the holdings of Xetra-Gold were 175.0 tonnes. After a significant increase to 183.5 tonnes by the end of June, the holdings had declined again.

For every Xetra-Gold certificate that investors buy via the stock market, exactly one gram of gold is deposited in the Central Safe for German Securities in Frankfurt. On request, investors can also have their securitised gold delivered. Private investors in particular make use of this option.

Profits from the sale or redemption of Xetra-Gold after a minimum holding period of one year are not subject to withholding tax, as announced by the German Federal Fiscal Court in September 2015. Thus, the acquisition and redemption or sale are to be assessed for tax purposes as a direct acquisition and sale of physical gold - such as gold bars or gold coins.