A New Record: Xetra-Gold Achieves 232 Tonnes Gold Holdings

Deutsche Börse recently announced that the exchange-traded bearer bond Xetra-Gold has achieved a new record with its gold holdings skyrocketing to 232 tonnes, representing an increase of 15.1 tonnes over the course of the year. This new record has made Xetra-Gold the leading physically deposited gold security in Europe.

The stock increases whenever investors buy Xetra-Gold shares on the stock exchange. For each unit certificate, exactly one gram of gold is deposited in the central vault. Xetra-Gold's assets under management currently amount to €11.6 billion.

Xetra-Gold (ISIN: DE000A0S9GB0) is a bearer bond issued by Deutsche Börse Commodities GmbH, which is 100 percent backed by gold. Xetra-Gold investors are entitled to delivery of the securitised physical gold. Each individual Xetra-Gold note grants the investor the right to require the issuer to deliver one gram of gold. Since the introduction of Xetra-Gold in 2007, investors have made use of this right 1,545 times and a total of 6.9 tonnes of gold have been delivered. With a trading volume of €1.87 billion, Xetra-Gold ranks sixth among the most traded securities in the ETF & ETP segment on Xetra. 

In September 2015, the German Federal Fiscal Court announced that gains from the sale or redemption of Xetra-Gold after a minimum holding period of one year would not be subject to withholding tax. The purchase and redemption or selling of Xetra-Gold is thus assessed for tax purposes as a direct purchase and sale of physical gold – such as gold bars or gold coins.

"The gold price had come under pressure due to the increase in real interest rates in the USA. Due to the rise in inflation and an attractive price level compared to other commodities, investors have now rediscovered gold as a tangible asset. Demand for Xetra-Gold has risen sharply, both from institutional and private investors. Our gold holdings have currently reached a new record of 232 tonnes," says Steffen Orben, Managing Director of Deutsche Börse Commodities GmbH, the issuer of Xetra-Gold.