Risk considerations
Investors should note that the Xtrackers ETFs are not capital protected or guaranteed and investors in each Xtrackers ETF should be prepared and able to sustain losses up to the total capital invested. The value of an investment in an Xtrackers ETF may go down as well as up and past performance does not predict future returns. Investment in Xtrackers ETFs involve risks. For a list of related risks please click on the Risks and Terms tab.
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Possible
protection
against loss of purchasing power
Commodity ETCs can
diversify
your portfolio
Physical custody of
precious metal bars
for physically backed ETCs
What are precious metals
Precious metals such as gold, silver and platinum have been recognised as valuable resources and stores of wealth for thousands of years. Their rarity, durability and unique industrial properties continue to make them essential materials in global markets.
- Gold is traditionally regarded as a safe-haven and is mainly used in the jewellery industry and as a currency reserve. Currently the world’s largest gold producer at around 380 tonnes annually is China.[1]
- Silver plays a dual role as both an investment metal and a critical industrial input, especially in electronics, photovoltaics and electrical applications. Over half of the annual demand of 28,000 tonnes is accounted for by industrial applications. Mexico leads the way in silver production, followed by Peru and China.[2]
- Platinum, on the other hand, is one of the rarest precious metals and is highly valued for its exceptional corrosion resistance and catalytic properties, making it essential in automotive and industrial applications. South Africa holds by far the largest share of global platinum‑group metal reserves with almost 80 per cent[3] of global platinum reserves and production.[4]
Why can it make sense to invest in precious metals?
As an addition to a portfolio, precious metals can contribute to risk diversification. However, different metals behave differently, especially in terms of volatility, correlation with traditional assets, and sensitivity to economic cycles. Gold normally fluctuates less than other precious metals such as silver or platinum.[5]
How can I invest in precious metals?
Precious metals can generally be traded in various ways. The choice depends primarily on your personal situation and your goals when investing in gold, silver or platinum.
1 Buying physical precious metals
You can buy physical precious metals from banks and gold dealers. After purchase, you may either store the metals yourself, accepting the security and insurance risks, or use professional storage options such as bank safe‑deposit boxes or institutional‑grade vaults.
2 Trade precious metals via futures markets
Like other commodities, precious metals are traded on global capital markets via futures contracts.
3 Investing in mining and commodity‑related shares
Another way to gain exposure is through publicly listed mining companies that produce gold, silver, platinum, and other metals. You can invest in listed producers via the stock exchange. However, mining stocks and sector ETFs are subject to high volatility and may lose value even when precious metal prices rise.
4 Buying precious metal ETCs
Through your bank or broker, you can invest in exchange-traded commodities (ETCs) that track the price of individual precious metals. These products allow you to participate in the performance of precious metals without having to worry about the physical storage of the commodities. These securities trade like shares on major exchanges. While they offer convenience and direct price exposure, ETCs still carry risks such as market volatility, tracking differences, and issuer credit risk.
How do precious metal ETCs work?
ETC stands for Exchange Traded Commodity. Gold ETCs, silver ETCs and other precious metal ETCs are exchange-traded securities that track the performance of precious metals such as gold, silver or platinum. To trade, all you need is a securities account with your bank or an online broker.
ETCs differ structurally from ETFs: while ETFs are investment funds, ETCs are debt securities. When investing in an ETC, investors are exposed to the credit risk of the issuer. To reduce the risk of your investment, you can invest in physically backed precious metal ETCs. In this case, the provider stores the corresponding precious metal bars in vaults.[6] Physically backed precious metal ETCs offer a direct link to the spot price of the respective precious metal. Information on the bars held in custody can usually be found on the issuer's website.
Risks of precious metal ETCs
As with all financial investments, precious metal ETCs also involve various risks. The prices of precious metals can fluctuate significantly and are often more volatile than other asset classes.[7] Non-currency-hedged ETCs expose investors to exchange rate risk, as commodities such as gold, silver and platinum are usually traded worldwide in US dollars.[8] Precious metal ETCs do not pay interest or dividends, and annual fees are charged.[9] When you invest in a precious metal ETC, you do not become the owner of the physical precious metal. An important difference to ETFs is that ETCs do not constitute a special fund. This means there is an issuer risk: if the provider becomes insolvent, there is theoretically a risk of total loss. In the case of physically backed ETCs, the deposited precious metal is intended to minimise this risk.[10]
Digression: How do gold ETCs work?
Gold has been valued for its scarcity, durability and long-standing use as a medium of exchange. Because it cannot be artificially reproduced and is extremely stable, it has historically been viewed as a reliable store of value and a safe haven during periods of financial and geopolitical uncertainty. Today, gold ETCs provide an accessible way for investors to participate in movements of the gold price. In principle, gold can also enhance portfolio diversification, as its price tends to exhibit low correlation with traditional assets such as equities and bonds. The long-term price development of gold shows how the precious metal has performed in recent periods of crisis[11]
Past performance is not a reliable indicator of future returns. Source: Bloomberg, DWS International GmbH, as at 31 May 2025
Xtrackers precious metal ETCs
If you want to invest in precious metals without much effort, Xtrackers offers a range of gold, silver or platinum ETCs. All Xtrackers precious metal ETCs are physically backed, where the real precious metal bars are stored in secured vaults under the oversight of trustees. Xtrackers gold ETCs also have another distinguishing feature. The gold bars deposited come from sustainable production processes and meet environmental criteria defined by the London Bullion Market Association (LBMA).
| Xtrackers ETC | ISIN | TER |
|---|---|---|
| ShortNameSC | DE000A2T0VU5 | 0.11% |
| ShortNameSC | DE000A2T5DZ1 | 0.24% |
| ShortNameSC | DE000A2UDH48 | 0.24% |
| ShortNameSC | GB00B5840F36 | 0.25% |
| ShortNameSC | DE000A1E0HR8 | 0.25% |
| ShortNameSC | DE000A1EK0G3 | 0.59% |
| ShortNameSC | DE000A2T0VS9 | 0.20% |
| ShortNameSC | DE000A2UDH55 | 0.73% |
| ShortNameSC | DE000A2T0VT7 | 0.38% |
| ShortNameSC | DE000A2UDH63 | 0.73% |
Depending on your individual goals, precious metal ETCs can be used flexibly as an addition to your portfolio – whether for possible portfolio hedging in uncertain market phases or as a long-term commodity component alongside equities and bonds. With Xtrackers precious metal ETCs, you can take control of the weighting of silver, platinum or gold in your portfolio. For systematic asset accumulation, you can also set up a savings plan and thus regularly save individual precious metals.
FAQs
Risks
Investors should be aware that Xtrackers ETCs represent collateralised securities with limited right of recourse. Their repayment depends on the underlying commodities in the case of physical Xtrackers ETCs, and on the deposited securities in the case of index-based Xtrackers ETCs. Such securities normally involve physical gold, but this can be replaced by approved financial instruments under certain circumstances.
Key Risk Factors
- An investment in an Xtrackers ETC may not be suitable for all investors. Xtrackers ETCs are not principal or capital protected investments, therefore investors should be prepared and able to sustain losses up to the total loss of the capital invested.
- Prices of precious metals are generally more volatile than prices of other asset classes. Substantial fluctuations of the value of the investment are possible even over short periods of time.
- Investments in ETC securities will not accrue any interest and performance is subject to the deduction of the product fee.
- Investing in ETC securities will not make an investor the owner of the relevant metal.
- Pricing of the ETC securities on the secondary market may be at a significant discount or premium compared to the Value per ETC Security (intrinsic value) published by the Issuer. Investments in Xtrackers ETCs involve numerous risks including but not limited to, general market risks relating to the relevant commodities, exchange rate risks, interest rate risks, inflationary risks, liquidity risks, and legal and regulatory risks.
- Movements in exchange rates can impact the value of your investment. If the currency of your country of residence is different from the currency in which the underlying investments of the fund are made, the value of your investment may increase or decrease subject to movements in exchange rates.
- Currency hedging component of ETC securities: In case the issuer has made a profit on a currency hedging component between relevant observation dates, the issuer and the investors will have an unsecured credit exposure to the Series Counterparty for such a profit being settled for up to two business days following each valuation day.
- In exceptional circumstances, gold collateral may be substituted for financial securities collateral by giving 60 days’ notice to securityholders.
- Xtrackers ETCs are exposed to swap counterparty risk. In the event of counterparty default e.g. as a result of insolvency, the Xtrackers ETC will be redeemed at the relevant value per security which may be less than the value of investors’ original investment. In addition, investors may lose more than any decline in the underlying index should the value of the collateral decline following a counterparty default. Therefore, investors should understand and evaluate the credit risk of Deutsche Bank AG as swap counterparty prior to making any investment.
- The value of an investment in Xtrackers ETC securities may go down as well as up. Past performance is not a reliable indicator of future performance.
- For a full description of risk factors, please refer to the relevant prospectus.