Gold in Paper Form: Xetra-Gold vs. EUWAX Gold II – Costs, Spread, Delivery, Taxes

Why “paper gold”?

Anyone who wants to hold gold in a brokerage account in Germany often ends up with physically backed gold ETCs. They track the gold price closely, are easy to trade, and spare many investors the organizational effort involved in storage, insurance, and transport. At the same time, “paper gold” is not all the same: with some products you pay ongoing custody costs, with others the costs are more heavily embedded in the spread (bid/ask spread), and when it comes to taxes the specific structure (especially the delivery entitlement) is decisive.

This article compares two classics: Xetra-Gold (DE000A0S9GB0) and EUWAX Gold II (DE000EWG2LD7). At their core, both are bearer bonds (ETCs) and therefore not special assets like an ETF — a point many people overlook when searching for “gold ETF”. JustETF explicitly classifies EUWAX Gold II as an ETC.

Key takeaway: The practical difference rarely shows up in the chart — but rather in friction costs (spread & fees), in the delivery process, and in the legal / tax classification.

“The difference rarely shows up in the chart — but in spread, fees, delivery, and tax logic.”

Comparison of Xetra-Gold vs. EUWAX Gold II

If you only want to take one sentence with you: Xetra-Gold is often the “more precise trading instrument” (tight spread), while EUWAX Gold II is more of a “cost minimalist” (no ongoing costs) — and the best choice depends on how and how long you hold gold in your brokerage account.

“Xetra-Gold often optimizes entry / exit via a tight spread — EUWAX Gold II often optimizes holding time via 0% ongoing costs.”

What exactly am I buying?

Xetra-Gold: structure and cost mechanics

Xetra-Gold is a gold ETC that tracks the gold price and anchors an entitlement to physical delivery in its structure. The Deutsche Börse product documents cite a structural depository / custody fee in the custody process of 0.025% per calendar month (in the relationship between Clearstream / custodian). What matters for you as an investor: depending on the broker, this fee may take effect “internally” or appear as a separate charge in your account. A clear source is the Xetra-Gold factsheet from Deutsche Börse (PDF).

Practical effect: Over long holding periods, this cost component adds up to a measurable performance gap versus the spot gold price. In return, Xetra-Gold is often very close to the market price in practice, because trading takes place in a highly liquid, professional environment.

“With Xetra-Gold, the spread is often the ‘good news’ chapter — holding-period costs are more the ‘hidden chapter’.”

EUWAX Gold II: 0% ongoing costs — but different friction

EUWAX Gold II positions itself clearly as an ETC with no ongoing product costs: no ongoing custody, administration, or insurance costs, plus free physical delivery from 100 g (and whole-number multiples) within Germany — each according to the factsheet. The most important primary source is the EUWAX Gold II factsheet (PDF).

However, that does not mean “free of charge”. With products that have no ongoing costs, part of the economic friction often shifts into other components — typically into pricing (spread), trading-venue fees, or costs related to physical delivery below the free thresholds.

“0% ongoing costs does not mean 0% costs — it means: the costs sit elsewhere.”

Costs in practice: spread, ongoing fees, broker charges

Spread: the most visible (and often underestimated) cost item

The spread is the difference between the bid and ask price. If you buy and immediately sell again, you lose roughly the spread (simplified). For gold ETCs this is especially relevant because investors often trade larger amounts or tactically buy/sell.

Practical experience: Xetra-Gold is often known for tight spreads, especially during core trading hours and on the appropriate venue. EUWAX Gold II can also be liquid, but depending on venue and time of day it more often shows more noticeable spreads. That is not a “weakness” per se — it is a different cost profile.

Remember: Those who trade frequently feel the spread more. Those who hold for a long time feel ongoing fees more.

“Those who trade frequently pay the spread more; those who hold for a long time pay the ongoing structure more.”

Ongoing costs: “storage fee” vs. “no ongoing costs”

The most common aha-moment in this comparison: with Xetra-Gold, a structural custody / depository fee exists in the background (typically 0.025% per month), while EUWAX Gold II shows no ongoing costs according to the factsheet. What matters for you is whether your broker passes these Xetra-Gold costs on visibly or whether they take effect “within the product” or in the settlement/custody process.

A helpful practical check: look in your broker’s schedule of fees and services to see whether there is a specific “custody fee” for Xetra-Gold, or review statements for regular charges.

“It’s not the question ‘Does the fee exist?’, but ‘Who shows it to you where?’ that determines your perceived cost truth.”

Broker level: why “savings plan”, “Trade Republic”, “Scalable” & Co. can change your costs

Many questions revolve less around the product itself than around implementation at the broker: “savings plan”, “free”, “spread”, “realtime”, or specific names like Trade Republic/Scalable/ING. That is logical: the best product logic is of little help if your broker charges high venue fees, unfavorable spreads outside core hours, or additional costs for delivery.

An approach that has proven itself: (1) check where the product is traded (Xetra, Stuttgart, OTC), (2) trade as much as possible during core hours, (3) compare the effective total costs (order + spread + ongoing + delivery if applicable).

“With gold ETCs, the broker is often the third player — alongside the issuer and the exchange.”

Liquidity: how “easily” can you get in and out?

Liquidity does not only mean “high volume”, but also: tight spreads, sufficient size in the order book, and reliable quoting — especially in volatile phases. Xetra-Gold often benefits from the Xetra environment and very broad market participation. EUWAX Gold II is also established, but more shaped by trading venue and timing.

What you can check live: (a) current bid/ask spread, (b) sizes on the first order-book levels, (c) whether the price behaves plausibly versus spot gold.

“The best price is not created by hope — but by trading time, trading venue, and discipline.”

Physical delivery: entitlement, process, costs — and the most common pitfalls

Both products are popular precisely because they anchor the entitlement to physical delivery in their terms (or structure it as an in-kind performance claim). This point plays a central role not only psychologically (“emergency option”), but also in tax arguments.

EUWAX Gold II: “free delivery from 100 g” — what does that mean in practice?

According to the factsheet, delivery is free within Germany from 100 g or a whole-number multiple. Below that, or in special cases, fees may apply, and in addition your custodian bank may charge its own fees for processing. That is why it makes sense to understand delivery as a process with multiple stations: issuer/custodian (product logic) + custodian bank (processing) + logistics/insurance (transport). (Details in the factsheet)¹

“Delivery is not a button — it is a process involving issuer, custodian bank, and logistics.”

Xetra-Gold: delivery is possible, but a cost/process check is mandatory

Physical delivery is also generally предусмотрено for Xetra-Gold. In practice, however, you should clarify in advance what your broker charges for processing and which fees may arise in the delivery / settlement process. Depending on the setup, delivery costs can significantly influence the “deliver or sell” decision. Tax case law for Xetra-Gold has, among other things, focused on whether redemption constitutes an in-kind performance (see BFH case law).²

“With Xetra-Gold, delivery is possible — but without a cost check it can become an expensive ‘surprise option’.”

Tax-free after one year: how “court-proof” is that?

The question “tax-free after 12 months?” is a perennial topic for gold in Germany. The background is the distinction between (a) taxation as investment income and (b) private disposal transactions with a speculation period — and the boundary depends in detail on structure, the nature of the claim, and product terms. For gold ETCs, the debate is often framed around the delivery entitlement / in-kind performance claim.

Xetra-Gold: BFH case law as a stability anchor

Many consider Xetra-Gold more “court-proof” because there are several relevant decisions by the Federal Fiscal Court (BFH). Central is, for example, the BFH judgment of 12 May 2015 (VIII R 4/15) on the tax classification in the context of Xetra-Gold.³ For redemption / delivery, a BFH decision from 2018 (IX R 33/17) is also known, which addresses redemption in the in-kind performance context.⁴

Important: even if case law is a strong argument, practical implementation in day-to-day brokerage operations is a second layer. In individual cases, some brokers still withhold withholding tax (e.g., out of caution or due to standard processes), so you may need to correct this via your tax return.

“Court-proof does not mean ‘broker-proof’: administrative practice can lag behind in individual cases.”

EUWAX Gold II: tax logic is plausible — but document carefully

The EUWAX Gold II factsheet notes that after selling following a 12-month holding period, “as a rule” no tax is withheld (wording deliberately not absolute). That is an important signal — nevertheless: document holding periods, purchase dates, and statements cleanly, and check whether your broker withholds anything. For larger amounts, consulting a tax professional is advisable.

“The best tax logic only helps if your documents prove the holding period beyond doubt.”

What could change?

Tax “certainty” is never absolute for securities. Changes can arise from legislation, administrative practice, or product terms. A warning sign would be, for example, if a product changes the delivery entitlement or effectively devalues it. Another risk is simply this: the market mixes “gold ETF”, “gold ETC”, and “gold certificate” in perception — even though the rules can differ significantly. You can find a current classification of the “gold ETF in Germany” situation and common alternatives in a financial press overview.⁵

“Not every product with a gold label has the same tax logic — the terms are the law in miniature.”

Risks: the overlooked chapter (ETC ≠ special assets)

Both products are ETCs and thus typically bearer bonds. That means: there is issuer risk. Physical backing reduces risks, but does not automatically eliminate them, because the specific legal construction matters (ownership position, trust / collateral structure, access in insolvency, etc.).

A robust practical approach is to read the primary documents: factsheet, base prospectus, KID/KIID (if available), and product terms. For the “Good Delivery” quality standard for bars, the LBMA framework also plays a role.⁶

“Physically backed is reassuring — but legal details decide how reassuring it really is.”

Which product is suitable for whom?

If you are unsure, many investors choose a pragmatic compromise: a core position in the preferred “holding-period product” (often EUWAX Gold II), and for tactical buying/selling an instrument with a particularly tight spread (often Xetra-Gold). That is not a must — but it is a comprehensible logic.

“The best choice is rarely ‘Product A or B’ — often it is ‘core position plus tactics’.”

FAQ: short answers to the most common questions

Is EUWAX Gold II really “free”?

According to the factsheet, EUWAX Gold II has no ongoing custody / administration / insurance costs. Nevertheless, costs arise via spread, order fees, and potentially delivery / custodian-bank fees.

Does Xetra-Gold have ongoing storage costs?

In the custody structure, custody/depository fees are stated (typically 0.025% per calendar month in the custody process). Whether you see these in your account depends on the broker (factsheet as a primary source).

Can I have physical gold delivered with both products?

In principle yes, but the process and costs differ. EUWAX Gold II states free delivery from 100 g (DE) in the factsheet. With Xetra-Gold, you should clarify costs and process with your broker in advance.

Is selling after one year tax-free?

The classification depends on structure and practice. Xetra-Gold has relevant BFH case law. The EUWAX Gold II factsheet notes that after selling following a 12-month holding period, as a rule no tax is withheld. In individual cases, broker practice may differ.

Conclusion in three sentences

If you primarily trade or place great value on a tight spread, Xetra-Gold is often the more precise tool. If you primarily hold and want to minimize ongoing costs, EUWAX Gold II is often the obvious choice due to its 0% ongoing costs (according to the factsheet). In both cases, a quick reality check is worthwhile: trading venue, time of day, effective total costs, and — if relevant — your specific delivery process.

“Xetra-Gold is often the better trading instrument, EUWAX Gold II often the better holding-period instrument.”

Footnotes

1. EUWAX Gold II factsheet (May 2025): free delivery from 100 g and “no ongoing costs”. — External link ↩
2. BFH line of decisions on redemption/delivery (in-kind performance claim as context). — External link ↩
3. Federal Fiscal Court (BFH), judgment of 12 May 2015, VIII R 4/15 (Xetra-Gold tax classification). — External link ↩
4. Federal Fiscal Court (BFH), judgment of 06 February 2018, IX R 33/17 (redemption/delivery, guiding principle). — External link ↩
5. Financial press overview of gold ETFs/alternatives incl. Xetra-Gold and EUWAX Gold II (current summary). — External link ↩
6. LBMA Good Delivery: standardization/quality assurance for gold bars (background to the bar standard). — External link ↩
7. Deutsche Börse: Xetra-Gold factsheet (PDF) with fee note in the custody structure. — External link ↩