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Withholding tax: escape from paper gold


Better to take it home: a noticeable number of investors had their gold delivered from Xetra Gold securities in August.
Image: AFP

While a lot of money flowed into gold securities all over the world in August, German investors withdrew their savings. The reason for this is the debate about a gold tax, which has now ended.

D.he August was once again strong for providers of securities on gold around the world. For the ninth month in a row, the Exchange Traded Funds (ETF) and Exchange Trade Commodities (ETC) on gold, also popularly known as “paper gold”, recorded impressive inflows. They topped up their stocks by a net 38.8 tons, and they received around 2.2 billion dollars in just one month. However, there is one exception: In Europe, investors withdrew gold from the funds – especially in Germany. 861 million euros flowed from funds in this country alone, as the industry organization “World Gold Council” reports. “Germany” is once again the exception in gold – this time the front runner in sales.

Xetra Gold was one of the three large German funds that had significant outflows. According to statistics, the well-known product of Deutsche Börse Commodities, a joint subsidiary of Deutsche Börse and several banks, had outflows of the equivalent of 314 million dollars in August. The gold stocks in the vaults, which are held in large bars weighing 12.5 kilograms, were reduced from 227 to 220 tons within a month.

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