Gold bars are displayed at the Korea Gold Exchange store in Seoul, South Korea, Friday, Oct. 13, 2023.
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In addition to ramen and sausages, a new hot item is on the menu at Korean convenience stores – gold bars.
CU, the country’s largest convenience store chain, has been partnering with the Korea Minting and Security Printing Corporation (KOMSCO) to offer mini gold bars to customers, and they are selling very well.
Variety A gold bar the size of a fingernail Products weighing between 0.1 grams and 1.87 grams have been sold in CU stores since April. A 1.87-gram gold bar sells for 225,000 won ($165.76), and a 0.5-gram gold bar costs 77,000 won.
1 gram gold bars sell for 113,000 won each Sold out in two daysAccording to local news reports. The bars come with congratulatory messages, birthday wishes, and even designs for personality types.
People in their 30s are the most active buyers of these gold bars, accounting for more than 41% of total gold bar sales since their launch, according to Pocket CU, CU’s business mobile app. People in their 40s accounted for 35.2% of sales, followed by people in their 50s at 15.6%. People in their 20s accounted for 6.8% of all sales.
The World Gold Council said in a report that South Korea’s demand for gold bars and coins increased by 27% year-on-year to 5 tons in the first quarter of this year due to rising gold prices. recent reports. The World Gold Council noted that this was the largest quarterly increase in gold buying in South Korea in more than two years.
It makes sense that many young investors are exploring gold as a way to diversify and protect their assets.
Shaokai Fan
World Gold Council Central Bank President
Other convenience stores are jumping on the gold and silver wave.At the GS25 convenience store chain in South Korea, customers can purchase small gold wafer from vending machine.
Heng Koon How, head of market strategy, global economics and markets research at UOB, said: “Usually during times of economic uncertainty, when local currencies depreciate, demand for gold physical jewelery will increase as domestic investors seek investments in safe-haven assets. .
according to Korea Gold Exchange, gold prices soared to a record level of 456,000 won ($335.3) per 3.75 grams, or 0.13 ounces. on the contrary, won It has fallen more than 5% against the U.S. dollar so far this year and currently trades at 1,358.7 against the U.S. dollar.
The World Gold Council pointed out that although gold prices have reached record highs, investment interest among young people in Asia has recently shown a growing trend.
“Many Asian economies are dealing with inflation and financial uncertainty for the first time in a generation,” Fan Shaokai, global head of central banking at the World Gold Council, told CNBC via email. “Many younger investors are exploring gold as a diversification asset. And it makes sense as a way to protect.”
Consumers in China, Asia’s largest economy, have also been buying gold, Collect 1 gram of small beans Packaging in glass jars has become a trend among the country’s youth. China also leads consumer demand for gold, with the country set to overtake India in 2023 to become the world’s largest buyer of gold jewelry.
Separately, in the United States last year, retail warehousing giant Costco became a popular one-stop shop with one-ounce gold bars priced at nearly $1,900.
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