Gold bars are selling like hotcakes in shops and vending machines in South Korea

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

The largest chain of convenience stores in the country, CU, collaborated with Korea Minting and Security Printing Corporation (KOMSCO) to offer customers mini gold bars – and these are selling like hot cakes, writes News.ro.

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A variety of fingernail-sized gold bars ranging in weight from 0.1 grams to 1.87 grams have been on sale at CU outlets since 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 1 gram ingots sold out in two days, according to local news.

The bars come with greeting messages, birthday wishes and even designs for personality types.

People in their 30s have been the most active in purchasing these gold bars, accounting for more than 41% of total sales since their launch, according to the Pocket CU phone app.

Those in their 40s account for 35.2% of sales, followed by those in their 50s with 15.6%. People aged 20 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 report. This was the strongest quarterly increase in South Korean gold purchases in two years, the WGC noted.

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Other convenience stores are also riding the bullion demand wave.

At the GS25 convenience store chain in South Korea, customers can buy small gold bars from vending machines.

“Usually in times of economic uncertainty, when the local currency depreciates, demand for physical gold jewelry increases as domestic investors look for safe haven asset investments,” said Heng Koon How, Head of Markets Strategy, Global Economy and market research at UOB.

Gold prices rose to a record 456,000 won ($335.3) per 3.75 grams, or 0.13 ounces, according to the Korea Gold Exchange. In contrast, the Korean won has depreciated more than 5% against the US dollar this year, currently trading at 1,358.7 to the dollar.

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

Consumers in Asia’s biggest economy, China, also bought gold, with collecting small, 1-gram bars in glass jars becoming a trend among the country’s youth.

China also leads consumer demand for bullion, with the country overtaking India in 2023 to become the world’s largest buyer of gold jewellery.

Separately, last year in the US, the giant Costco became a popular buying place for one-ounce gold bars, at prices of almost $1,900.