Globally, family businesses embody much more than financial value. They represent legacy, tradition, reputation, and a deep sense of purpose that goes beyond any balance sheet. Still, despite their resilience, only around 30% of family businesses survive the transfer into the second generation, and less than 15% make it to the third generation (FamilyBusiness.org, 2021).
The proportion of family businesses in Germany is estimated to be between 86 and 88 %. In the next three years, 43% of German family businesses are due to transfer company or shares. More than half of larger businesses with more than 250 employees are planning for a generational change in this time period (Ifo Institute, 2024). Among best known family businesses in Germany one can find names such as ALDI (Albrecht family); BMW Group (Quandt / Klatten family), Robert Bosch (Bosch family) and Heraeus Holding, which is also an important partner and supplier of precious metals to another family business Elementum Group (Pravica family).
Why is succession so difficult? This is because transferring a business is not merely an economic transaction. It is the handover of trust, responsibility, and vision. In this delicate process, some families are rediscovering an ancient but surprisingly modern companion for the future: gold and silver. These two timeless assets are proving useful not only as hedges against uncertainty (i.e. inflation or other forms of depreciation of assets) but also as symbolic and very practical bridges from generation to generation.
Beyond Ownership Transfer: The Real Meaning of Succession
When succession planning begins, most families focus on more technical and administrative aspects: transfer of shares, managing tax obligations, and nominating new executives and board members. While these are essential, they address only the formal process of transition. However, the essence of succession is somewhere else: (i) preserving asset values, (ii) ensuring business continuity, and (iii) maintaining harmony among heirs.
Many family businesses are highly illiquid. Capital is tied up in machinery, real estate, or intellectual property. When the time comes to pass the baton, liquidity challenges often emerge. Buying out heirs, not interested in the business, paying inheritance taxes, or stabilizing the company during leadership change are all big cash burners. These pressures which can be enormous, can harm relationships or even force the sale of family assets.
This is where diversified wealth structures become of a critical importance. By allocating part of family wealth into tangible, non-business assets, such as precious metals, founders can introduce flexibility and fairness into the inheritance process. As the World Economic Forum (2023) notes, successful transitions depend not just on legal structure but on “clear governance and a shared sense of stewardship.”
Gold and Silver: Symbols and Strategies of Continuity
Gold and silver are different from any other assets. Their value is neither dependent on political systems nor on the performance of financial markets. For centuries, they have been regarded as synonymous of stability and enduring wealth.
From a symbolic perspective, gold and silver represent durability, scarcity, and trust. These are qualities that reflect the values of a strong family business. They are physical, tangible, immutable, and immune to digital volatility or physical degradation offering a reassuring sense of permanence.
From this strategic perspective, precious metals serve multiple purposes:
- They hedge against inflation and currency depreciation, protecting family wealth during economic turbulence.
- They add liquidity outside the core business, enabling smoother intergenerational wealth transfers.
- They are tangible so that heirs can literally hold part of the family’s history in their hands.
Families whose wealth is concentrated in non-liquid assets like production, agriculture, or real estate, can find in gold and silver a way to balance risk. As a recent analysis from Goldmarket.fr (2024) put it, “Gold and silver remain the pillars of long-term heritage preservation and anchors of trust in a world where everything else is negotiable.”
Bridging Generations Through Shared Values
A family business succession is not only about transferring control but it’s about connecting generations. Investing in precious metals can become a shared exercise in stewardship, promoting intergenerational dialogue and mutual respect.
For founders, gold and silver represent discipline and prudence. This is a reminder of the principles on which the business was built. For younger heirs, who often prefer digital or higher-risk investments, these metals offer a lesson in patience, stability, and the long-range view.
Many family advisors now recommend creating a family wealth council. This is a space where members discuss not only business strategy but also shared assets and investment philosophy and strategy which is embedded in their family agreed risk appetite framework. In such settings, building a family precious metals portfolio can be more than an investment decision. It becomes an educational tool. Symbolically, the act of gifting or co-owning gold and silver carries deep meaning. It is a tangible expression of trust between generations, binding them through shared values and long-term vision.
Including Precious Metals in a Succession Plan
Integrating gold and silver into a family’s succession strategy requires thoughtful design. Experts generally suggest allocating 5–10% of total family assets to precious metals (Nasdaq, 2023), though the ideal share depends on overall wealth and liquidity needs.
There can be two formats with different meaning: (i) physical bullion (coins, bars) offers the emotional weight of ownership and can be handed down directly or stored in a vault or (ii) paper forms (ETFs, mining stocks) are more liquid but less symbolic and harder to control their real asset-based value.
Storage and legal structure are also of a key importance. Families may opt for private vaults, safe deposit boxes, or professional custodianship. Inheritance laws and taxation on capital gains for physical metals vary by country (Investopedia, 2023), so professional advice is essential.
Crucially, heirs must understand the purpose of holding such assets. Gold and silver are not meant for speculation but for intergenerational stability. They remind each generation that wealth preservation is a marathon, not a sprint.
A Legacy That Shines Beyond the Business
The true test of a family enterprise is not whether it grows, but whether it lasts. As founders pass on, the greatest gift they can leave is not only a profitable business but also a culture of prudence, balance, and foresight. Gold and silver, modest in appearance but timeless in essence, combine all these values. They stand as quiet witnesses to the passage of time: solid, stable, and immune to fashion.
In an age when family businesses face both global volatility and generational shifts, these ancient metals offer something modern finance cannot: a bridge between past and future. The enduring shine of gold and silver reminds us that legacy is not just about inheritance. It is about the continuity of trust, value, and vision. And in that sense, perhaps every ounce of gold or silver in a family vault tells the same story: the story of a legacy that refuses to fade.
References
- World Economic Forum (2023). 3 Ways Family Businesses Can Improve Their Succession
- FamilyBusiness.org (2021). Family Business Succession Planning: 10 Golden Rules
- Goldmarket.fr (2024). Gold and Silver: Pillars of Long-Term Heritage Preservation
- Investopedia (2023). Taxes on Physical Gold and Silver Investments
- Ifo Institute / Foundation for Family Businesses (2024). Almost Half of Family Businesses in Germany Are About to Pass to the Next Generation
- Nasdaq (2023). Why Millennials and Gen Z Are Investing in Gold and Silver
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Prof. Dr. Jaka Vadnjal
Board Member of Elementum International AG
Prof. Dr. Jaka Vadnjal is an independent business consultant, mainly in the field of finance and investments. In addition to his consulting work, he also held several executive positions, including CEO at LON Bank, Chairman of the Board at SOP and Dean at GEA College of Entrepreneurship, where he has been teaching for the last 27 years. During his career, he worked as a consultant for several private companies and governments in the Western Balkans. He received his PhD from the University of Ljubljana (Slovenia) and studied at Babson College (USA), Stirling and Humberside University (UK) and INSEAD Business School (France). He published more than two hundred professional articles in the fields of economics, finance and investments. He is the author of 40 articles in scientific journals and is also the co-author of several business textbooks.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The amended cover picture has been obtained and licenced from 123rf.com.
