Germans are more likely to buy gold than stocks?

Germans would be more likely to buy gold than stocks, according to a new Survey by research agency Kantar Emnid on behalf of Deutsche Börse Commodities. Respondents were asked what they would consider if they were allowed to invest an amount of €25,000. This survey showed that most people would invest this amount in real estate, namely 32% of the respondents. Buying gold came in second place with 29%, which is why stocks scored better.

Of all respondents, 25% say they will invest the money (or part of it) in stocks or mutual funds. The traditional savings account still appears to be an option for 23% of those surveyed, even though it currently no longer yields interest. That also says something about the savings mentality of the Germans, who like to keep a financial buffer in reserve.

Gold vs Stocks

The slight preference for Buy gold relative to equities is noteworthy, as equities have delivered higher returns so far this year. Germans apparently attach great importance to the precious metal, which is known as a safe haven in times of crisis. Gold is also a way to protect assets against inflation.

Many Germans have a strong connection to gold from a historical perspective, as older generations still know the stories of hyperinflation in the Weimar Republic. The money then became completely worthless in a few years, causing savers to see their assets evaporate. Although share prices went through the roof due to hyperinflation, shares also lost a large part of their value in terms of real purchasing power.

Trust

Despite the high level of interest in gold, Germans are generally positive about the economy and their wealth position. A majority of 60% say the situation on the financial markets is very uncertain at the moment. That seems like a lot, but it's less than it was a few years ago. Previous polls in 2017 and 2019 put that share at 68% and 85%, respectively.

With regard to their personal financial situation, most respondents are positive about the future. Only 18% say they are worried about their financial position. It is also striking that the respondents worry less about it the larger their wealth. One possible explanation for this is that wealthy people can own more financial assets that generate returns and that they face little financial risk.

Germans are more likely to invest €25,000 in gold than in stocks (Source: Deutsche Börse Commodities)

This contribution was made from Geotrendlines