In April, the gold investment market saw an unexpectedly strong recovery. Data from the Gold Investor Index Germany (GII DE) provided by BullionVault indicates a 240 percent increase in the number of new first-time buyers compared to last year’s average. Despite the gold price hitting a new all-time high and a surge in investor numbers, German investors remain cautious.

The price of gold reached a new record in April, averaging €2,178 per fine ounce, marking a 9.7 percent increase from March.

“The spring rebound in German gold investments is indeed remarkable, but it still lags behind the resurgence seen in other Western countries, starting from a very low baseline,” comments Adrian Ash, Head of Research at BullionVault.

Gold Investor Index: Buyers Outnumber Sellers
The German Gold Investor Index climbed to 52.4 in April, a jump of 31 points from March. This swift rise—the fastest since February 2023—recovers four-fifths of the previous decline, indicating more buyers than sellers.

April saw the number of new first-time buyers in Germany rise by 240 percent compared to the past 12 months’ average. However, this pales in comparison to increases seen in other Western countries such as the United Kingdom, France, and the United States, where the number of first-time buyers rose by 959, 881, and 395 percent, respectively.

“The fact that the gold price has reached new all-time highs in April and remains at levels that were record-breaking just a month ago underscores strong demand from Asian investors and savers, especially in China,” Ash explains. Central banks in emerging markets continue to accumulate gold bars, as conflicts in Ukraine and Gaza heighten geopolitical and financial tensions among major powers.

Geopolitical Tensions Fuel Gold Price Surge
The ongoing geopolitical situation has further spurred demand for gold among Asian investors, with China playing a key role in driving gold prices. “Private sector demand appears to be saturated, especially given rising bank interest rates and recent peaks in the DAX. Nevertheless, profit-taking slowed considerably in April,” says Ash. The deteriorating geopolitical landscape might make potential sellers cautious, even as gold prices continue to rise and set new records.

The Silver Investor Index in Germany also rose in April to 48.2, indicating more sellers than buyers for the second consecutive month. The recovery from March’s low was only 18 points, less than a third of the decline in March.

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