To say that the global financial crisis had a seismic effect on markets is almost a truism. But the events of 2008 reshaped investor behaviour too, not least in Germany.
As a nation which values long-term wealth preservation, Germany has a long tradition of gold investment. Around the turn of the century however, German investors discovered a new-found fascination for equities and interest in gold waned. Banks, historic distributors of physical assets, closed down or minimised their gold desks and investment demand fell to generational lows.
The financial crisis transformed that mindset, reminding German investors of the properties that had attracted them to gold in the past – its resilience in the face of disaster; its lack of correlation with other assets; its immunity from credit risk; and above all, its reliability as a wealth generation tool.
Since that time, the German gold market has gone from strength to strength, boosted by a rich ecosphere that facilitates gold investment online, in stores, at banks and via ETFs.
In this edition of Gold Investor, we explore Germany’s relationship with gold, showcasing that, when conditions are right, a gold market can experience rapid development, to the benefit of stakeholders across the value chain.