Deutsche Börse: Gold stocks are falling - financial experts see the market environment as the reason

Deutsche Börse: Gold stocks are falling - financial experts see the market environment as the reason

According to a report by www.finanzen.net, the gold treasure held by Deutsche Börse for investors has shrunk again. At the end of December 2023, 198.7 tons of the precious metal were stored in the company's vaults in Frankfurt. A year earlier it was 231 tonnes, and as of June 30, 2022, stocks had reached 242 tonnes.

The managing director of Deutsche Börse Commodities, Michael König, explained the downward trend as a “normal reaction” of investors to the market environment. The interest rate turnaround has created new, short-term return opportunities. In addition, the price of gold in euros was higher than ever before, which could have led to investors taking profits or switching to overnight and fixed-term deposits as interest rates rose.

Since 2007, almost eight tons of gold have been delivered to investors, and at the end of 2023, the gold treasure held by Deutsche Börse for investors was worth a total of 11.9 billion euros.

The declining gold holdings at Deutsche Börse could have various effects on the market and investors. The falling stocks indicate a change in investor behavior, which was influenced by the increased return opportunities as a result of the interest rate turnaround and the high gold price.

It could also be a sign that investors are restructuring their portfolios to respond to changing market conditions. The delivery of gold to investors shows that some investors prefer physical gold rather than investing in gold securities.

All of these factors could cause increased volatility in the gold market and also affect gold prices. Investors and industry experts should therefore closely monitor the development of gold holdings at Deutsche Börse, as this could indicate long-term changes in investor behavior and the gold markets.