Why German investors love gold shares and bullion

A 2024 study by the World Gold Council found that 38% of German investors have bought or held gold—making it the third most popular investment after savings accounts and stocks. Their reasons echo those of central banks and institutional investors: gold protects against inflation, is easy to trade, offers better long-term returns than cash, and helps diversify portfolios.

As of April 21, 2025, gold prices have soared past US $3,400 per ounce—a record high. The 12% gain in the past month and 45% jump over the past year is driven by safe-haven demand amid global trade tensions and a weakening U.S. dollar.

Germany’s deep-rooted relationship with gold remains strong. The Deutsche Bundesbank holds the world’s second-largest gold reserves, behind only the U.S. Federal Reserve. These reserves reflect both strategic foresight and a cultural memory shaped by hyperinflation and economic turmoil, reinforcing gold’s appeal as a stable, tangible asset.

Germany's affinity for gold—rooted in history, economics, and psychology—continues to shape both private and institutional investment strategies as the global outlook remains uncertain.

BNP Paribas recently highlighted five reasons for continued bullishness on gold and these are some of the reasons also cited by German gold investors.

1. Central Bank Activity
   The global easing cycle and central bank gold purchases are expected to continue supporting prices.
2. Economic Policies
   Inflationary government policies, rising deficits, and trade concerns bolster gold's safe-haven appeal.
3. Geopolitical Tensions
   Ongoing conflicts in regions like Ukraine and the Middle East maintain uncertainty.
4. Market Trends
   Despite short-term corrections, long-term fundamentals—such as dovish central bank policies—remain positive.
5. Investor Demand
   Strong interest from retail and institutional buyers persists. ETF holdings remain 25% below 2020 highs, and China’s central bank resumed gold purchases in late 2024.

Most Actively Traded Dual-Listed Gold Miners on Frankfurt and German Stock Exchanges.
German and European investors continue to be very strong buyers of global gold exploration and mining companies with a dual listing on Frankfurt Stock Exchange.
Some of these include:​