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Half-year report: Xetra-Gold achieves new record for gold holdings and assets under custody

Release date: 03 Jul 2019 | Deutsche Börse Commodities

Half-year report: Xetra-Gold achieves new record for gold holdings and assets under custody

Growth of around 13 tonnes year-to-date / Europe's largest gold security with physical deposit

The gold holdings of the exchange-traded Xetra-Gold bearer bond (ISIN: DE000A0S9GB0) rose to a new record of 194.3 tonnes as of 30 June. This is an increase of around 13 tonnes over the course of the year. At the turn of the year, 181.5 tonnes of gold were stored in the central vault for German securities in Frankfurt. This makes Xetra-Gold the leading physically deposited gold security in Europe.

Gold holdings increase whenever investors buy Xetra-Gold shares via the stock exchange. Exactly one gram of gold is deposited in the central vault for each unit certificate. After the recent strong increase in the gold price, the assets managed by Xetra-Gold currently amount to 7.7 billion euros - which is also a new all-time high.

"The first half-year was very satisfactory, both the gold holdings and the assets under custody of Xetra-Gold reached a new record value", says Steffen Orben, Managing Director of Deutsche Börse Commodities GmbH, the issuer of Xetra-Gold. "The development over the past years show that gold has developed into an independent asset class in the portfolio. Stock markets are currently reaching new highs, so investors are following suit with their gold shares in the portfolio. Studies show that about five percent gold in the portfolio is considered a sensible addition in times of crisis".

According to Orben, the uncertainty on the capital markets remains despite the price rises on the stock markets, which is why gold remains interesting for investors. "In addition, more and more asset managers, family offices and private investors are showing interest in gold as a separate asset class," Orben continues.

Xetra-Gold investors have claim to the delivery of the securitised physical gold. Since the introduction of Xetra-Gold in 2007, investors have made use of it 1,033 times. A total of 5.05 tonnes of gold were delivered.

Of all the commodities (Exchange Traded Commodities, ETC) traded on the German Xetra market, Xetra-Gold is the security with the highest turnover. In the first half of 2019, order book turnover amounted to €1.53 billion.

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. Thus, the purchase and redemption or selling of Xetra-Gold is to be assessed for tax purposes as a direct purchase and sale of physical gold – such as gold bars or gold coins.


Further information can be found at www.xetra-gold.com.
 


About Xetra-Gold
Xetra Gold (ISIN: DE000A0S9GB0) is a 100% gold-backed bearer note issued by Deutsche Börse Commodities GmbH that grants the right to physical delivery of gold. Each individual Xetra-Gold note grants the investor the right to demand the delivery of one gram of physical gold from the issuer. The issuer holds a corresponding amount of physical gold and a limited amount of gold leaf rights for each Xetra Gold note. The fact that Xetra-Gold takes the form of a security makes it fungible and as easy to transfer as a share. Insurance undertakings in Germany are also allowed to purchase Xetra-Gold for their restricted assets in the amount of up to five percent of their commodities investment. The international derivatives exchange Eurex offers futures and options on Xetra-Gold. Xetra-Gold is admitted for sale to the public in Austria, Luxembourg and the UK, as well as Germany. The full details on Xetra-Gold bearer notes, particularly on the terms and conditions, as well as on the issuer, can be found in the prospectus. The prospect including supplements or updates can be obtained free of charge at Deutsche Börse Commodities GmbH, Mergenthalerallee 61, 65760 Eschborn, Germany, or downloaded under www.xetra-gold.com.

About Deutsche Börse Commodities GmbH
Xetra-Gold issuer Deutsche Börse Commodities GmbH, based in Eschborn/Frankfurt, 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 manufactures gold bars, is also a partner. The issuer’s sole business purpose is to provide the market with Xetra-Gold, the bearer note backed 100 percent by physical gold, and to enable efficient, transparent and cost-effective trading of this securitisation of physical gold.