Shops in South Korea have a new popular product on offer – gold bars
Shops in South Korea have a popular new product on offer – gold bars.
The country’s largest convenience store chain, CU, has partnered with Korea Minting and Security Printing Corporation (KOMSCO) to offer customers mini gold bars — and they’re selling like hot cakes, according to CNBC.
Weighing between 0.1 and 1.87 grams, they went on sale at CU outlets starting in April. A 1.87-gram ingot sells for 225,000 won ($165.76), and a 0.5-gram one sells for 77,000 won. Priced at 113,000 won each, the one-gram ones sold out in two days. They are accompanied by greeting messages, birthday wishes and even patterns for personalization types.
People in their 30s have been the most active buyers of these gold bars, accounting for more than 41% of all sales since their launch, according to mobile trading app Pocket CU. 40-year-olds account for 35.2% of sales, followed by 50-year-old buyers with 15.6%.
Data from the World Gold Council (WGC) showed demand for bullion and coins in South Korea rose 27% from 2023 to 5 tonnes in the first quarter of this year, amid rising prices for the precious metal.
And other convenience stores are on the bullion wave. In the GS25 chain, customers can buy small gold bars from vending machines.
“People are looking for safe haven assets”
“Usually during times of economic uncertainty, when the local currency depreciates, demand for gold will increase as people look for safe-haven assets,” said Heng Koon How, head of markets strategy at United Overseas Bank.
According to the Korea Gold Exchange, the price of gold rose to a record high of 456,000 won ($335.3) for 3.75 grams, or 0.13 ounces. In contrast, the won weakened by more than 5% against the US dollar.
Shaokai Fan, WGC Global Head of Central Banks, noted a recent trend of increased investment interest among a younger cohort in Asia, even as gold prices hit record highs.
“Many Asian economies are facing inflation and financial uncertainty for the first time in a generation. It makes sense that many younger investors are exploring gold as a way to diversify and protect their assets.”
On the other hand, in the US last year, retail warehouse giant Costco became a popular one-stop shop for one-ounce gold bars priced at nearly $1,900.
