As an investment option, gold has always been immensely popular among German folks. More and more Germans every year are opting to buy gold mainly to protect their wealth.
What does the GoldHub survey suggest?
GoldHub is an initiative put forward by the World Gold Council to collaborate tools, data for research analysts researching gold. GoldHub conducted a worldwide survey where more than 12,000 people took part. This survey, conducted by 2000 German investors, found that Germans buy gold from the best gold investment companies for two reasons, mainly to protect their wealth from market risks and also to enjoy better market returns.
This particular survey has also focused on the factors which drive investors to purchase more gold. Gold was perceived to be a safe and durable investment option, and it is a traditional and effective measure of risk management. Germany stands second in the world when it comes to the highest number of per-capita private gold investors, and Switzerland is the first in this aspect.
Also, Germans are found to be comparatively wealthy, and this supports their action of buying more gold than most parts of the world. The survey revealed that along with 32% of high-income Germans investors, 19% from the low-income group were also upbeat about investing in gold.
The most astonishing part of the survey was out of 2000 Germans who voiced their opinions, 77% said they would again make gold investments. About 41% have already invested in gold, and the remaining who previously did not make any gold purchases were willing to do so in the upcoming year.
The outbreak of COVID-19 and its impact on the buying behavior of gold investors
The report was generated about 1-2 years before the outbreak of coronavirus and nonetheless to say, after the pandemic, things have started looking a bit different. While the first confirmed case of Germany was announced on the 27th of January, 2020, a curfew was not declared until the late of March. Although if we talk about the current scenario we would feel that the restrictions have been eased the situation is far off from improving because lockdown has been imposed almost recently.
Germany is currently in a state of recession and to help the ailing economy standup it has announced a package of about ?130 billion. Surprisingly the pandemic has proved to be a trigger to the existing demand of gold because the buying behavior of gold investors is not found to be affected.
Before the restrictions were imposed, the Irish Times reported that the German investors are standing in long queues in front of gold stores to make purchases before the economy goes into the standstill mode.
Right now, as many parts of Europe brace themselves for the second wave of coronavirus infections, there has been an increase in German investors turning to buy gold. This is their safe bet for protecting their wealth with the hope of getting a decent ROI in due time.
