Fears as Deutsche Bank refuses clients' demand for physical gold

Deutsche Bank has been accused of breaking the terms of bond sales, say financial experts as the trouble-hit bank refused to hand to its own customers gold they have purchased through an investment venture. This has set off further alarm bells over Germany's economy as the bank faces plunging share prices and thousands of job cuts. Financial expert Max Keiser says the bank is "technically insolvent" and runs a "ponzi scheme", adding that Deutsche Bank "needs to go out of business because they are not solvent but politicians, including (Finance Minister) Schaeuble, allow for financial engineering products to come onto the market that mask insolvency... this is a dead bank walking." Reports suggest Deutsche Bank is considering a merger with Commerzbank. 

Deutsche Bank has been accused of refusing to hand over customer's gold

Germany's biggest bank has been accused of breaking the terms of bond sales by financial experts.

The trouble-hit bank is reportedly currently contemplating a merger with Germany's other mega-bank, Commerzbank.

Clients who have invested in the exchange-traded commodity "Xetra-Gold" have said they are having problems with the bank, according to German analytic website Godmode-Trader.

Xetra-Gold is a bond on the Deutsche Börse commodities market, and Deutsche Bank is a designated sponsor.