2023-08-01 08:00:00
gold bars and coins
Germans bought less gold in the second quarter.
(Photo: dpa)
Frankfurt German investors are buying less gold, according to the World Gold Council (WGC) gold demand report. Accordingly, they bought 78 percent less gold bars and coins in the second quarter of this year than in the same period last year. Demand fell to 10.9 tons from 48.9 tons in the second quarter of 2022.
German reluctance to buy the precious metal is the most negative factor affecting global gold demand this year, says WGC chief market strategist John Reade. However, the decline was preceded by several years of strong demand.
Reade sees several reasons why German investors are currently asking fewer bars and coins. On the one hand, many investors would hold more cash reserves due to the weak economic situation in Germany. “In addition, there is the strong interest rate environment,” says Reade. “Investors are once again receiving interest on their savings from the banks.” This is a difficult environment for gold, which does not generate any current income.
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