Gold bars are sold like hot cakes in stores and vending machines in Korea

In addition to ramen and sausages, stores in South Korea have a new popular item on the menu – gold bars, reports CNBC.

The country’s largest convenience store chain, CU, has partnered with the Korea Mining and Security Printing Corporation (KOMSCO) to offer customers mini gold bars – and they’re selling like hotcakes.

A variety of fingernail-sized gold bars, weighing between 0.1 grams and 1.87 grams, have been on sale at CU outlets since April. A 1.87 gram stick sells for 225,000 won ($165.76), and a 0.5 gram stick sells for 77,000 won.

Priced at 113,000 won ($82.87) each, the 1-gram bar-shaped mini bars sold out in two days, according to local news reports. The bars come with congratulatory messages, birthday wishes and even designs for personality types.

People in their 30s and 40s have been the most active buyers of these gold bars, accounting for more than 41% of total sales since their launch, according to CU’s Pocket CU business phone app. Those in the 40-50 age range represent 35.2% of sales, followed by those aged 50-60 with 15.6%. Young people aged 20-30 represented 6.8% of total sales.

Demand for bullion and coins from South Korea rose 27% year-on-year to 5 tonnes in the first quarter of this year amid rising prices for the yellow metal, the World Gold Council said in a recent analysis. This was the strongest quarterly increase in South Korean gold purchases in two years, the WGC said.

Other convenience stores are also riding the bullion bandwagon. In the GS25 chain of convenience stores in South Korea, customers can buy small golden wafers from vending machines.

“Typically, in times of economic uncertainty, when the local currency depreciates, demand for physical gold jewelry will increase as domestic investors look for safe haven asset investments,” said Heng Koon How, Head of Market Strategy, global economy and market research at UOB.

The WGC has noted a recent trend of increased investment interest among younger investors in Asia, even as gold prices exceed record levels.

“Many Asian economies are facing inflation and financial uncertainty for the first time in a generation,” said Shaokai Fan, WGC head of central banks. “It makes sense that many younger investors are exploring gold as a way to diversify and protect their assets,” he added.

Consumers in Asia’s largest economy, China, have also bought gold, with collecting small 1-gram pieces in glass jars becoming a trend among young people. China also leads bullion demand, with the country overtaking India in 2023 to become the world’s largest buyer of gold jewellery.