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Germans hoarding mountains of gold
Photo: DPA

Germans hoarding mountains of gold

Published: 12 Dec 2012 12:23 GMT+01:00
Updated: 12 Dec 2012 12:23 GMT+01:00

Like Scrooge McDuck or the dragon Smaug in J. R. R. Tolkien's The Hobbit, Germans are gathering vast quantities of gold - a study showed that the average German owns close to €6,000 worth of the shiny metal.

Even though Europe's largest economy has weathered the world economic crisis relatively well, Germans have still been extra jittery about their savings, a study by the Steinbeis Research Center for Financial Services in Berlin revealed.

Around 32 percent of the gold owned in Germany in the form of bars and coins was accumulated since the financial and economic crises began, the study concluded.

Commissioned by precious metal trading group Heraeus, the study also found that people with surplus cash are becoming gold-greedier. The number of Germans with a net monthly income over €4,000 who say they intend to invest in gold has doubled in the current year.

On average, every German owns around 117 grammes of gold, comprising 55 grammes of jewellery and 62 grammes of bars and coins, the study, which surveyed 2,000 people, found. Taken together with gold securities, the average German owns some €5,750 of gold.

Including the German federal bank's gold holdings, that means the Germans have gathered seven percent of the world's gold.

Gold is considered a safe investment in times of economic stress because the precious metal is thought to keep its value over a long period, can be collected and kept safe personally, and can be traded easily.

Some 69 percent of Germans have invested in gold, and roughly half of these keep at least some the metal in their homes. Around 47 percent keep their gold in a private locker in a bank. Around nine percent, meanwhile, keep some of their precious metals with a specialized gold trader.

Rich people are more likely to invest in gold bars, while those on lower incomes are more likely to buy gold coins.

The Local/bk

The Local (news@thelocal.de)

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Your comments about this article

15:34 December 12, 2012 by reallybigdog
Hum and to think that this news would spark an idea in criminals at home and abroad to believe that there is gold in them der homes they could be a stealin!! Jump to Dec 2013..... a sharp spike in home related break-ins across Germany has officials completely stumped as to the cause, more news on this story at 11.....
16:51 December 12, 2012 by IchBinKönig
Germans trying to protect their financial well being from the people they elect. But why does the articles headline use the word 'Hoarding'? It makes it sound like they are doing something wrong. Not sharing, Greedy, like Scrooge McDuck. Is it a sin now to want to be financially independent? without the Government fleecing you at every turn? I guess to some, it is a sin.
17:20 December 12, 2012 by Berlin fuer alles
Sounds like I am not the only one who does not trust Dr. Merkyl and Mr. Hyde's financial policy.
17:29 December 12, 2012 by raandy
Gold is commodity to have during turbulent financial times. The Germans are thinking more about the possibility of a currency problem in the future than a economy collapse.

I wonder where they learned about hoarding gold? Six thousand euros worth for the average German is substancial.
17:49 December 12, 2012 by GloriousNewsComrades
As Lenin said,

¦quot;The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.¦quot;

The Rich people are hoarding, hiding and protecting their money from the Proletariat's Government. It is time for the Proletariat to reclaim this Gold! This is why Gold is illegal in all Communist countries. Come, comrades, it is time!
19:11 December 12, 2012 by Englishted
According to the bible (very old untrue story) greed is one of the seven deadly sins,also known as the capital vices hence capitalism (ok I made that bit up but it is true though ).

There you are king old chap.
20:52 December 12, 2012 by Tonne
I do love averages; they tell you so little! In Germany in 2008, 10% of the population owned 53% of the wealth and 50% owned less than 1% of the wealth, and the proportion of wealth owned by the richest 10% was growing.

So, "on average every German owns €5750 of gold"? I think not.
21:59 December 12, 2012 by Bigfoot76
The test group is clearly flawed. This is very poor statistical/study work done by Steinbeis Research Center for Financial Services.
23:39 December 12, 2012 by gorongoza
Hey, you guys at The Local are now reporting nonsense. You talking of the average German "hoarding some EUR.6 000,00 gold" ! THIS STUDY IS TERRIBLY FLAWED.

Native Germans I know are experiencing hardships at the moment and for you guys to splash such a headline "mountains of gold" is an insult to these souls. Average German - how did this study arrive at this average thing? Utter BULLS..T !
03:36 December 13, 2012 by Hendrich Stein
If you look at the charts amid its spikes and falls, historically, gold has remained a flat investment relative to currency.

Banks neglect this who are increasingly hoarding gold today. It is not an investment until it is sold at a higher value than it was bought. Historically, excluding today's bubble like many in the past, it is no investment at all, and usually worth what it was back in the 1800's relative to that currency for example.
22:00 December 13, 2012 by blacksunne88
I'd like to hear about the mountains of German gold hoarded in the American Fed in New York, and the sizable piles in Paris and London, too. THE LOCAL should do an expose of these hoardings. Is the money still there? Why does the Fed refuse to allow German officials to inspect it? have the solid gold bars been replaced with gold plated simulacra?
00:56 December 15, 2012 by Paul Felix Schott
MOUNTAINS? MAYBE LITTLE HILLS OK STOCKPILES. IT SHOULD BE FOOD & WATER ,

And knowledge of the Lord's Word Read the Bible.

Help others and read the Lord's word to them while you still can.

The Lord's Little Helper

Paul Felix Schott
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