How private investors invest in paper gold

The magic of gold: In the money museum of the Deutsche Bundesbank in Frankfurt
Image: Wolfgang Eilmes

Would you like to invest in gold but don’t have a safe at home? There are securities on gold. But which ones?

Gold is on the verge of becoming the asset of 2020. In mid-March, the gold price plummeted due to the corona crisis with share prices. But since then things have been going up again – again because of Corona. In particular, the fear of a second wave of the pandemic has recently spurred demand for the precious metal. Gold is already quite expensive. Those who have gold are more happy than those who want to buy it. Nevertheless, there are still analysts who predict a further increase in the gold price from just under 1,800 to 2,000 dollars per troy ounce (31.1 grams) or more. Deutsche Bank still expects a “moderate” increase in the gold price by the end of the year, as Ulrich Stephan says, chief investment strategist for private and corporate customers.

Christian Siedenbiedel

For many private investors, however, gold is more like insurance for very bad times. They are less focused on short-term speculation gains. For them, physical gold is the investment object of choice: especially because of the prospect of being able to access their bars and coins at any time, even in difficult times. However, physical gold also has disadvantages: you need a safe or a safe deposit box or you have to hide it really well. In addition, the spread between purchase and sale price is quite high, especially in the crisis.


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