Gold as an investment

Gold has been a store of value for thousands of years – but is it also a good investment?

For gold:

✅ "Safe haven": often rises when shares fall (crisis protection)
✅ Inflation protection: purchasing power is preserved in the long run
✅ Tax-free in Germany after a 1-year holding period (physical gold and gold ETCs)
✅ No counterparty risk (gold always has value)

Against gold:

❌ No interest, no dividends (gold doesn't work for you)
❌ Long-term return: only 3–5% per year (shares: 7–9%)
❌ Storage: physical gold must be kept safe (safe, safe deposit box)
❌ Volatile: the gold price fluctuates – not a "safe" value in the short term

Forms:

• Physical: gold coins, gold bars (advantage: tax-free after 1 year)
• Gold ETC: Xetra-Gold (exchange-traded, backed by physical gold, tax-free after 1 year)
• Gold ETF: not directly possible in Germany (segregated asset rules)

Recommendation: at most 5–10% of your portfolio in gold – as insurance, not as your main investment.