Xetra-Gold celebrates 10th anniversary
- Europe's largest physically-backed gold security
- Rapid increase in gold reserve to more than 170 tonnes
- Bavaria and Hesse particularly like physical delivery of Xetra-Gold
Xetra-Gold, Europe's leading gold-backed security, celebrates its 10th anniversary. Frankfurt Stock Exchange's trading opened today by the ringing of the stock exchange bell in honour of the occasion. After a recent significant rise in demand for gold on the part of private as well as institutional investors, currently more than 170 tonnes of Xetra-Gold valuing over €6 billion are stored in the German central vault for securities in Frankfurt. That figure stood at 59.25 tonnes at the start of 2016.
The Xetra-Gold physically-backed bearer note enables investors to participate in euro gold price performance. One unit certificate represents exactly one gram of gold in euros, which is stored in the German central vault for securities for each certificate.
Xetra-Gold investors are entitled to physical delivery of the certificated gold volume. Investors have exercised this right 965 times since Xetra-Gold was introduced in 2007, resulting in delivery of a total of 4.8 tonnes of gold. Bavaria and Hesse particularly enjoy having the gold at home, with over half of physical delivery made to these states. Xetra-Gold has the highest turnover of all commodities traded on the Xetra platform – known as exchange traded commodities or ETCs. Order book turnover for the first six months of 2017 totalled some €1.78 billion.
Xetra-Gold issuer Deutsche Börse Commodities GmbH is a joint venture between Deutsche Börse AG and banking partners Commerzbank AG, Deutsche Bank AG, DZ Bank AG, B. Metzler seel. Sohn & Co. KGaA, and Swiss-based bank Vontobel. Umicore AG & Co. KG, a Group subsidiary of Umicore s.a. which operates several gold refineries across the globe and manufac-tures gold bars, is also a partner.
In September 2015, the Federal Fiscal Court announced that gains from the sale or redemption of Xetra-Gold after a holding period of one year would not be subject to capital gain compensa-tion tax (Abgeltungssteuer). Thus, for tax purposes, the purchase and redemption or sale of Xetra-Gold is to be treated as a direct purchase or direct sale of physical gold, as, for example, of gold bars or gold coins.