Gold bars sold at convenience storers in South Korea
By Ryan General
South Korea’s young investors are getting into gold by buying bite-sized bars sold at convenience stores and vending machines.
Key points:
- Sales of small gold bars (0.1-1.87 grams) are booming in South Korea, targeting younger demographics.
- Rising geopolitical tensions and inflation are driving Koreans towards gold as a safe investment.
- Gold vending machines and stores in Seoul offer easy access for budget-conscious investors.
The details:
- Gold prices in Korea have recently hit record highs, reaching a record 456,000 won ($ 333) per 3.75 grams (0.13 ounces) on Friday. The trend is attributed to due to a combination of factors, including geopolitical tensions in the Middle East, escalating conflict between Iran and Israel and surging high inflation.
- CU, South Korea’s biggest convenience store chain, partnered with the Korea Minting and Security Printing Corporation to offer mini gold bars priced from 77,000 Korean won ($56.40) for the smaller ones and to 113,000 won ($82.67) for the 1-gram bars. Since the program’s launch on April 1, 42% of the products available were sold in 15 days. One-gram bars, which even come with personalized messages, reportedly sold out in just two days.
- GS25 convenience stores also offer tiny gold wafers in vending machines.
- Younger demographics are leading the charge, with those in their 20s and 30s accounting for 41.3% of the gold bar purchases from CU. Gen Z investors in China are also buying small gold products.
What’s next:
- Analysts predict gold prices could continue to rise, with some forecasting a 30-50% increase by 2025.
Tangent:
- This surge in demand for physical gold indicates a growing distrust in traditional fiat currencies, particularly among younger generations.
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