Selling gold in Germany, is it really worth it?

In the German border regions, over 90% of customers of precious metal buying businesses are French. However, it is important to remember that attractive offers can hide significant legal and tax risks. Caution is therefore required when selling gold in Germany. In Germany, it is possible to sell one’s gold in a few minutes and go home with thousands of euros in cash without signing a contract or providing identification, if the sale does not exceed €2,000.

The French cross the border to sell their gold at a gold counter in Germany, where the regulations are much less strict than in France. Payments are made directly, sometimes in cash, and there is no tax levied by Germany. However, the regulations on gold buying are much less strict than in France but there is no legal protection or right of withdrawal.

The former anonymous limit of €9,999.99 for gold purchases is obsolete since January 2020. All purchases of gold by a private person must be accompanied by the seller’s ID and the sales invoice must therefore be signed by the gold investor.

The Best Way to Sell Jewelry in Germany.

The best way to sell jewelry in Germany is to go to a reputable Pfandhaus (pawn shop). These shops will pay close to the current market value for the gold. It’s best to avoid small stores that look untrustworthy, often found between kebab shops and pubs.

A Pfandhaus operates similarly to an exchange. Instead of selling your jewelry, consider pawning it. You’ll receive the same amount of money, but you have the option to reclaim your item after six months, potentially receiving more money. Pfandhäuser will auction off your items after a few months if unclaimed. If the auction fetches more than the initial loan amount (minus fees), the surplus is yours. If you don’t claim it, the money goes to the state.

It’s a good idea to pawn vintage jewelry, as it’s currently a booming market. While pawn shops generally offer the material’s worth, antique jewelry shops might pay more due to the piece’s history. Despite their reputation, Pfandhäuser in Germany are highly regulated, minimizing the risk of losing your jewelry.

You can send your jewelry to a Pfandhaus for an appraisal and decide if the offer is acceptable. You are guaranteed a good price and a fair loan.

Buying gold in Germany.

When purchasing gold, it’s highly recommended to choose well-established and widely recognized coins such as the Britannia, Maple Leaf, Krugerrand, or Wiener Philharmoniker, as they tend to be more affordable and easily resold. For in-person purchases, you can buy up to €2000 without needing to provide identification at local dealers, which simplifies the process. However, to secure the best prices, it’s advisable to shop at specialist gold dealers like Pro Aurum, Philoro, or Degussa. These dealers offer competitive rates and expertise that general banks may lack. For the most accurate price comparisons, utilize resources like gold.de before finalizing your purchase. This approach will help you maximize your investment and ensure you get the best value for your money.

German Banks in the Gold Market

German banks play a crucial role in the German gold market. Nearly every bank in Germany buys and sells gold to private customers, with some also acting as gold wholesalers. Key players include state-owned regional banks (Landesbanks), savings banks (Sparkassen), cooperative banks (Volksbanken and Raiffeisenbanken), and commercial and investment banks like Commerzbank.

You can also buy gold euro coins from Germany in 1/8 oz, 1/4 oz, and 1/2 oz sizes, with denominations of €20, €50, and €100. These coins are typically sold close to the spot price for smaller sizes. Last year, the €100 coin was even sold for less than its melt value.

For purchasing, visit the official shop of the Ministry of Finance at Münze Deutschland. However, unlike bullion, these coins are not always available. They are sold only during specific time frames each year, and if orders exceed the mintage, it becomes a lottery whether you receive one or not.

Landesbanken

Landesbanken are owned by state governments and savings banks. There are eight Landesbanken, and all sell gold to savings banks in their regions. Three of these—Bayerische Landesbank (Bayern LB), Landesbank Baden-Württemberg (LBBW), and Landesbank Hessen-Thüringen (Helaba)—also distribute gold to other wholesalers, banks, and retailers.

• Bayern LB Headquartered in Munich, Bayern LB is a major physical gold dealer in German-speaking countries, dealing in over 800 precious metal products. It supplies gold to Sparkassen and Volksbanken, as well as directly to retailers and private investors. Bayern LB also offers precious metal savings plans and gold ounce accounts and buys scrap gold from the public.
• LBBW Based in Stuttgart, LBBW wholesales gold to the wider market and offers physical gold to its own customers and Sparkassen banks.
• HeLaBa With headquarters in Frankfurt and Erfurt, HeLaBa also acts as a gold wholesaler and distributor to its savings banks and other customers.

Both Bayern LB and LBBW are Ordinary members of the London Bullion Market Association (LBMA). Other Landesbanken include Nord LB, Bremer LB, Landesbank Berlin (LBB), Landesbank Saar (SaarLB), and HSH Nordbank, which supply gold primarily to their regional Sparkassen.

Reisebank

A subsidiary of DZ Bank, Reisebank supplies gold products to Volksbanken/Raiffeisenbanken and is one of the top three gold dealers in Germany. Its network includes over 1,200 cooperative banks, more than 100 branches, and an online store.

German Commercial Banks

• Commerzbank Commerzbank is one of the top three bullion banks globally and an Ordinary Member of the LBMA. Its gold trading business operates from Luxembourg, with desks in New York and Singapore. Commerzbank is a shareholder in the Swiss precious metals refinery Argor-Heraeus, facilitating the supply of Argor-Heraeus products. Alsoo a little bit it is too expensive.
• Deutsche Bank Although no longer an LBMA member, Deutsche Bank remains active in the German gold market, selling gold to its customers and some smaller banks. It is also an authorized representative for several mints and refineries, including South Africa’s Rand Refinery.
• Hypovereinsbank (HVB) Headquartered in Munich and also known as UniCredit Bank AG, HVB sells gold to its customers.

Private Banking

Private banks such as Hauck & Aufhäuser and Bankhaus Lampe facilitate gold transactions for their clients, often in partnership with German gold wholesalers.

Precious Metals Specialists

Large non-bank wholesale gold distributors in Germany include Ziemann Valor, Pro Aurum, and ESG Edelmetall.

• Ziemann Valor Part of the Ziemann Gruppe, it supplies precious metals to German banks and coin dealers and operates an online store.
• Pro Aurum With outlets in major German cities and branches in Switzerland, Austria, and the Czech Republic, Pro Aurum is a significant non-bank precious metals dealer.
• ESG Edelmetalle Located near Karlsruhe, ESG is a scrap metals refiner and producer, known for the gold Combibar, and also a trader in gold. ESG offers some of the best prices and ensures high safety standards. Additionally, all the coins and bars they sell come with their own fitting capsules.
• Degussa A major national gold retailer with international branches, Degussa owns a recently acquired refinery in Pforzheim, processing scrap metals for the jewelry sector.
• MP Edelmetalle This retailer operates offices in several German cities, including Köln and Düsseldorf.

Interaction Within the German Gold Market

• Nearly all German banks buy investment gold and sell gold to customers.
• Landesbanken act as wholesalers to their savings banks.
• Bayern LB, LBBW, and Helaba also wholesale to other banks and retailers.
• Reisebank wholesales to cooperative banks.
• Commercial banks like Commerzbank wholesale to the general market.
• Banks purchase gold from mints, refineries, and international wholesalers.
• Private customers buy gold from various banks and retailers.

Distributors/Representatives

Authorized distributors for international mints and refineries in Germany include Deutsche Bank, Bayern LB, LBBW, and Degussa, among others. These entities partner with international mints to distribute gold products in Germany.

The attractive offers from gold counters can be tempting, but it is important to remain vigilant.

Although the German tax authorities do not levy a tax on the transaction, it is important to declare the sale in France and pay the CRDS at 0.5% and the TPV at 34.5% of the gain amount, as well as the TFM at 11% of the sale price if the origin of the gold is unknown.

When crossing the border, it is mandatory to orally report the possession of gold to the German customs and to fill out a CIRFA form or the procedures via the DALIA online service in France. Customs officials may temporarily retain or confiscate illegally transported gold or cash, and the fine may reach 50% of the value of the goods.

A more flexible German regulation, but less protective.

However, if you want to sell gold on the other side of the Rhine, you will also be less legally protected. Unlike in France, the merchant in Germany is not obliged to inform you precisely about prices, nor to respect certain protective rules such as the establishment of a written contract, the respect of a withdrawal period or the recording of the transaction and your identity in a register (except if the transaction amount exceeds €2,000). It is therefore important to inquire about the gold counter, the conditions of the planned buying contract, and to compare offers.

In order to enforce an EU directive on money laundering, cash transactions must be significantly limited. Since January 1, 2020, gold can only be bought anonymously for a maximum amount of €2,000 if the payment is in cash. However, this law only applies to the purchase of gold by a private individual and not to the resale.