EDITOR'S NOTE: It’s estimated that around 10.8% of the American population own gold. A 2017 LA Times article claims a figure close to that percentage. But still, we can’t be certain. There’s a lot of secrecy surrounding this “private” investment, especially when it comes to legacy gold, so the truth is that nobody knows for sure. But the approximation tells us that gold is far from a mainstream allocation. The article below supports estimates that German households own almost twice as much gold as the American population. Value preservation was the number one motivator behind the investment. Impressively, there was a surge in German Gen Z gold investment during the pandemic. And according to the study, over 93% of all gold holders are satisfied with their allocations. Gold may be down slightly from its 2022 highs. But year-to-date, gold is outperforming Bitcoin (and possibly all other crypto investments) and the S&P 500. Both the US and Germany face similar economic circumstances. So, what accounts for the difference between the two when it comes to safe-haven allocations?
Commissioned by Reisebank from Berlin-based Steinbeis University, the study reveals that German private households now own more than 9,089 tonnes of gold. The last time corresponding data had been collected via a survey was in 2019. At that time, the market researchers had come to 8,900 tons of German gold ownership, which would have added 189 tonnes. In the current study, one speaks of an increase of 270 tonnes.
Gold of the Germans
- German private households hold more than 6 percent of the world’s gold reserves, the equivalent of 616 billion euros at last count;
- The share of gold bars and gold coins in this gold ownership is estimated at 41.7 percent. Total: 5,194 tonnes. In the 2019 study, it was still 55 percent or 4,925 tonnes;
- 93.2% are satisfied with their gold investment (2019: 91%);
- More than three-quarters of respondents plan to purchase more gold. (In 2019 – 78%)
- On average, each gold investor invested €4,250 over the past two years;
- 5% were first-time buyers.
- Priority reasons given for gold investments were value preservation (43.9%), protection against inflation (33%), aesthetics (31.1%) and the aspect of “holding a real, value-dense investment in your hands” (29.7%).
- During the pandemic, the percentage of “Generation Z“ investors (born between 1995 and 2010) increased from 15.6 % to 23.3%.
Spot gold is down 0.8% to $1,776.66 per ounce by 1 p.m. ET Tuesday. US gold futures also fell 0.8% to $1,776.40 per ounce.
Originally published on Mining.