The gold price, which has been rising again since the end of September, has also significantly increased the demand for Xetra-Gold (ISIN: DE000A0S9GB0). The holdings of Europe’s leading gold-backed security have exceeded the 180-ton mark. The assets under custody currently amount to 6.2 billion euros.
“The gold price ranged in midsummer for a long time around 1,200 US dollars per troy ounce, a psychologically important mark – because that was the lowest level for almost two years,” explains Michael König, Managing Director of Deutsche Börse Commodities GmbH, the issuer of Xetra-Gold. “In recent weeks there has been a clear correction on the stock markets due to emerging geopolitical risks and the return of inflation. As a result, the gold price has also recovered and the demand for gold funds has risen again. We are also experiencing this with Xetra-Gold.”
At the beginning of the year, the holdings of Xetra-Gold were 175.0 tonnes. After a significant increase to 183.5 tonnes by the end of June, the holdings had declined again.
For every Xetra-Gold certificate that investors buy via the stock market, exactly one gram of gold is deposited in the Central Safe for German Securities in Frankfurt. On request, investors can also have their securitised gold delivered. Private investors in particular make use of this option.
Profits from the sale or redemption of Xetra-Gold after a minimum holding period of one year are not subject to withholding tax, as announced by the German Federal Fiscal Court in September 2015. Thus, the acquisition and redemption or sale are to be assessed for tax purposes as a direct acquisition and sale of physical gold – such as gold bars or gold coins.
Further information can be found at www.xetra-gold.com
Xetra® and Xetra-Gold® are registered trademarks of Deutsche Börse AG.
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.