Have you ever wondered How to Buy Gold in Germany as an Investment ? Because every time the news gets scary, whether it’s inflation, bank collapses, or global unrest people start talking about gold?
It’s like gold is this ancient, unshakable fallback plan. Especially in Germany, where people have a long-standing love affair with gold.
So, let me share everything you need to know about How to Buy Gold in Germany (As an Investment) from coins and bars to digital options and ETFs.
Why Do People Invest in Gold Anyway?
Let’s start with a simple but important question: what’s the point of gold in your investment portfolio?
Gold is not a growth asset. It doesn’t earn interest, doesn’t pay dividends. It doesn’t build compounding returns like stocks or real estate.
So why do investors especially in conservative markets like Germany still swear by it?
Because gold is a hedge. It’s not about making you rich. It’s about protecting what you already have. Gold holds its value when currencies weaken. When inflation rises. When banks look shaky. Historically, it’s one of the few assets that doesn’t rely on governments, central banks, or company earnings.
It’s financial peace of mind. A type of insurance. Something you tuck away and hope you never need.
That’s why most financial advisors recommend keeping somewhere between 5 to 10 percent of your portfolio in gold or other precious metals. Not because it will outperform everything else, but because it’s not correlated with everything else.
Germany’s Gold-Friendly Landscape
And Here’s something surprising to many newcomers: Germany is a fantastic place to buy investment gold.
Why? First of all, there’s no VAT on investment-grade gold. In many countries, you’d pay 10 to 20 percent in taxes when buying gold. In Germany, if it meets purity requirements (at least 99.5% for bars and coins considered legal tender), it’s exempt from VAT.
That already puts you at a better starting point. Combine that with high consumer protection laws and a population that genuinely trusts physical gold, and you’ve got one of the most mature gold markets in the world.
Now let’s look at the three main ways you can invest in gold as a resident in Germany:
- Physical gold (bars and coins)
- Gold-backed ETFs or ETCs
- Digital or vaulted gold through online platforms
Related Guide: ETF Investing in Germany
Buying Physical Gold in Germany
Let’s talk about the classic: holding actual, tangible gold. It’s simple and for many people, the most emotionally reassuring way to invest.
In Germany, you can buy gold bars and coins from a wide range of reputable dealers. The most well-known include:
- Degussa
- Pro Aurum
- Heubach Edelmetalle
- ESG Edelmetalle
You can visit physical branches in most major cities or order online. If you go in person, you can literally walk in, pay with cash (up to €1,999 anonymously), and walk out with a gold bar in your pocket. It feels like something out of a spy movie, but it’s 100% legal.
If you pay more than €2,000, the dealer is required by law to take your ID for documentation. That’s part of Germany’s effort to prevent money laundering but for regular investors, it’s nothing to worry about.
What to Buy Physical Gold in Germany?
For beginners, 1-ounce coins are usually the sweet spot. Popular choices include:
- Krugerrand (South Africa)
- Maple Leaf (Canada)
- Vienna Philharmonic (Austria)
- Britannia (UK)
These are widely recognized, easy to sell, and have relatively low premiums over the spot price. If your budget is tighter, you can start with smaller coins, just keep in mind that the smaller the denomination, the higher the markup.
If you prefer bars, stick with LBMA-certified manufacturers like Heraeus, Umicore, or Valcambi. They’re respected globally and easy to resell.
Where to Store Physical Gold in Germany?
This is the part most people overlook.
If you’re buying physical gold, where you keep it matters. Keeping thousands of euros worth of gold in a drawer? Not smart.
So what are Your options:
- At home, in a fireproof safe (make sure you get special insurance!)
- Bank safety deposit box which would cost around €30 to €100/year
- Private storage services, like those offered by Degussa or Pro Aurum
Some storage services even allow you to store gold outside Germany usually in Switzerland, for added political diversification.
Buying Gold ETFs and ETCs in Germany
Let’s say you don’t want coins and don’t want a safe. You just want the exposure to gold’s price without the fuss. You can look into gold-backed ETFs and ETCs.
In Germany, one of the most popular is Xetra-Gold (ISIN: DE000A0S9GB0). It’s not technically an ETF, but an ETC (exchange-traded commodity). The best part is that each unit you buy is backed by real, physical gold held in a vault in Frankfurt.
Now, here’s the downside: you don’t get the same tax treatment as with physical gold.
If you hold physical gold for at least 12 months, any profit from selling it is 100% tax-free in Germany. But with ETFs and ETCs, gains are treated like any other investment they’re subject to Germany’s flat 25% capital gains tax (plus solidarity surcharge and possibly church tax).
So, for long-term holders, physical gold can be more tax efficient.
But for those who want convenience, liquidity, and security ETFs are a great choice.
One thing I need to add here is that gold ETCs with a physical delivery claim are treated in the same way as capital gains resulting from the direct purchase of physical gold. Xetra-Gold belongs to this category, meaning that profits from this ETC will be tax free after 1 year. Here is a list of other ETFs belonging to the same category.
Vaulted or Digital Gold in Germany
Now we’re in the in-between zone: you don’t want to deal with delivery and storage, but you do want actual ownership of physical gold.
Welcome to the world of vaulted gold.
There are many services that let you buy real, allocated gold stored in professional vaults. Often in Switzerland, Germany, or the Netherlands.
You get all the advantages of physical ownership without handling logistics. You can buy tiny amounts (even less than 1 gram), and sell instantly online. Fees are usually low: about 0.5% buying, 0.15% annual storage. And your gold is your gold not pooled, not a paper promise.
Just be sure to read the fine print. Some platforms offer “unallocated gold” meaning you don’t actually own a specific piece. You just have a claim. That’s not the same as real, allocated gold with your name on it.
The Hidden Costs of Buying Gold in Germany
Let’s talk about the things that sneak up on investors. Because gold isn’t totally cost-free, no matter how you buy it.
Premiums: You’ll always pay a bit more than the market price known as the “spot price.” For physical gold, expect 3% to 10% depending on size. Bars are usually cheaper than coins. Large bars (100g or 1kg) have the lowest per-gram cost.
Storage fees: If you store gold in a bank or vault, expect annual fees. These aren’t massive, but they add up over time.
Selling costs: Dealers buy back gold below spot price. The spread might be small (1-2%), but it matters especially for short-term trades.
Scams: Beware of sketchy online platforms offering “discount gold,” overpriced savings plans, or weird monthly subscriptions. If someone’s charging you 5% monthly “management fees,” then whats the point of that Investment? Reputable platforms exist just stick with those recognized by BaFin (Germany’s financial regulator)
Another option for Investing: How to Buy Real Estate in Germany
Is Now a Good Time to Buy Gold?
That’s the golden question (pun 100% intended).
Gold recently crossed €3,000 per ounce for the first time in Germany. That’s massive. It’s driven partly by central banks hoarding gold and economic uncertainty. Gold prices have come down back a little But does that mean it a good time to buy?
Not necessarily. Gold often moves in long cycles. And remember, the point of gold isn’t to chase gains. It’s to provide stability.
If you’re looking to hedge your euro-based savings, buying gradually through monthly purchases or small tranches can make more sense than trying to time the market.
And again, don’t go all in. Gold is a piece of the pie, not the whole meal.
Practical Steps to Get Started
Here’s your simple checklist:
- Decide how much you want to invest. 5-10% of your savings is a typical starting point.
- Choose the format: physical, ETF, or digital.
- If physical, pick your source: Degussa, Pro Aurum, gold.de (comparison site).
- Store your gold safely: either at home (safely!), in a bank box, or through vault storage.
- If ETF, open a brokerage account
- Always Keep your documentation. For physical gold, this helps prove the purchase date in case you want to sell tax-free after 12 months.
Now Gold won’t make your heart race like tech stocks. It won’t cash-flow like rental property. But it has something else going for it: resilience.
It just… sits there. Through crises, inflation, political chaos. And quietly holds its value. That’s why it’s been part of the German financial culture for decades and why more and more expats are looking into it now.
Whether you buy a few coins, stash a bar in a vault, or add a gold ETF to your portfolio, just know: you’ve got options. Real ones. And in uncertain times, that kind of clarity is worth its weight… well, in gold.
Disclaimer: None of the content in this article is meant to be considered as legal, tax or investment advice, as I am not a financial expert or a lawyer and am only sharing my experience with stock investing. The information is based on my own research and is only accurate at the time of posting this article but may not be accurate at the time you are reading it.