Investors’ gold holdings at Deutsche Boerse climb to 216.9 tonnes

Investors’ gold holdings at Deutsche Boerse, the Frankfurt-based marketplace organizer for the trading of shares and other securities, went up by almost 7 percent year-on-year and stood at 216.9 tonnes at the end of last year, the German company said on Tuesday.

With assets under custody amounting to 10.7 billion euros (13.14 billion U.S. dollars) at the end of last year, the so-called Xetra-Gold was the “leading physically backed gold security in Europe,” Deutsche Boerse noted.

“In 2020, we have once again achieved a record in the holdings of Xetra-Gold. The peak was reached in the summer, driven by the high level of uncertainty as a result of the pandemic,” said Steffen Orben, managing director of Deutsche Boerse Commodities.

Gold holdings increase every time investors buy Xetra-Gold shares via the stock exchange. For each share certificate, one gram of gold is deposited in the central vault for German securities in Frankfurt, according to Deutsche Boerse.

Xetra-Gold investors are “entitled to delivery of the securitized physical gold,” Deutsche Boerse noted. Since the launch of Xetra-Gold in 2007, investors have made use of the entitlement 1,479 times and a total of 6.8 tonnes of gold have been delivered.

Gold prices went up from around 1,550 U.S. dollars per ounce at the beginning of last year to above 1,900 U.S. dollars at the end of 2020.