Federal Finance Minister wants to protect precious metal investors | Gold reporter


Olaf Scholz wants to strengthen consumer protection for financial investments. In a press statement, the Federal Minister of Finance also goes into business with precious metals.

Federal Finance Minister Olaf Scholz: Business models in which precious metals are invested and interest is paid should be better supervised. But: Gold products with promised interest are always suspect (Photo: Federal Ministry of Finance / Photo Library / Thomas Koehler)!

Consumer protection for precious metals?

Federal Finance Minister Olf Scholz made a press statement on Thursday in Berlin on the control of financial markets and, in this context, on consumer protection measures. Surprisingly, he addressed the topic of precious metals. There have been several fraud scandals in this sector in recent years, especially that of the Berlin BWF Foundation (Goldreporter reported). And the insolvency of the gold dealer PIM Gold last year brought many investors heavy losses and resulted in legal consequences (PIM Gold – BaFin warned in 2018; Anwalt.de).


“We want to ensure that business models in which precious metals are invested and where interest is paid at the end of the term [ausgezahlt wird; Anm. d. Red] will be regarded as an investment, which then simply has the consequence that many regulations of consumer protection and supervision apply that would not apply today ”. That is well-intentioned, because the Federal Financial Supervisory Authority (BaFin) has had a hard time with investment forms in gold and silver. According to Anwalt.de, BaFin said in 2015 to a financial magazine: “Precious metal purchases that are not investments and also do not require a permit are outside the scope of competence of BaFin.” The only question is how well the BMF fulfills the framework conditions for gold and silver Plant knows.

Gold and interest: that doesn’t fit!

Because gold savings plans, for example, which are linked by the provider with an interest promise, should generally be viewed with great skepticism by investors. The argument that is often used against gold that it does not generate any interest is completely correct in terms of content. Gold as physical property has no third party or default risk that would require interest. Even more: fund or savings plan operators who promise private investors a return of whatever kind in the context of gold investment products must be viewed as dubious. Because returns can only result from an increase in the price of gold. And it is impossible for operators to predict this development.

That’s how it’s done!

In other words: If you want to invest safely in gold or silver, you can buy real bars and coins from renowned dealers and take care of the storage yourself. Precious metal is to be seen primarily as a physical asset. It is not a financial product. This is exactly why BaFin is not responsible for pure (usually highly reputable) gold storage transactions. You can read more about this in our guide “Locker and Depot Storage” (Attention: Special price offer until October 12, 2020).

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