The New Safe Haven: Why Germany’s Youth Are Betting Big on Gold
If you assume the younger generation is solely focused on the next crypto pump or AI moonshot, think again. Amidst a backdrop of global military conflicts, shifting US trade policies, and economic anxiety, young Germans are leading a surprising flight to safety.
According to the new “Investment Barometer 2025” by Deutsche Börse Commodities, gold has emerged as the top asset class for 25- to 34-year-olds, outpacing traditional favorites like real estate and savings accounts.
The Anxiety Factor
The driving force behind this shift is a pervasive sense of unease. The study reveals that two-thirds of Germans currently feel insecure about their financial future. With the geopolitical landscape looking shaky, the appetite for risk is plummeting.
While savings accounts and ETFs remain the standard safe harbors for the general population, gold has clawed its way back into the top three investment choices for the first time since 2022. If handed a windfall of 25,000 euros today, nearly as many Germans would buy gold (27%) as would put it in a savings account (31%). Meanwhile, confidence in real estate and individual stocks is waning. Despite the digital noise, cryptocurrencies remain a niche player, attracting only 6% of the general vote.
A Generational Shift
The most striking data comes from the younger demographic. For those between 25 and 34, gold isn’t just an alternative; it is the number one choice. They trust the precious metal more than bank deposits or funds.
This isn’t just about short-term flipping, either. This generation is taking a long view. Almost half of young investors now view gold as a critical component of their retirement planning, a rate significantly higher than the national average. Interestingly, they are also bringing modern values to this ancient asset: one in five young investors cites sustainability and ESG criteria as a reason for their interest in gold.
Stabilizing the Portfolio
Steffen Orben, Managing Director at Deutsche Börse Commodities, notes that this sentiment aligns with market performance. With gold values rising over 50% in 2025 so far, the “flight to safety” has paid off.
“The barometer shows that a consistent majority perceive the financial markets as uncertain,”
Orben explains. He suggests that the old rule of thumb – allocating five to ten percent of a portfolio to gold – remains the best strategy for weathering the storm.
Whether through physical bars or exchange-traded commodities like Xetra-Gold, which offer the liquidity of a security with the backing of physical assets, the message from 2025 is clear. When the world feels unpredictable, the youngest investors are looking for the oldest form of stability.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.