Recently, South Korea’s convenience stores have started offering a unique item on their menu – gold bars. Collaborating with the Korea Minting and Security Printing Corporation (KOMSCO), the country’s largest convenience store chain, CU, has introduced mini gold bars, which have become immensely popular among customers. These miniature gold bars, ranging from 0.1 gram to 1.87 grams, are selling like hot cakes since their launch in April. With different sizes and price points, these gold bars come adorned with congratulatory messages, birthday wishes, and personalized designs, catering to a wide range of customers.
Traditionally, gold has been seen as a safe-haven asset during times of economic uncertainty. However, the demographics of gold buyers are shifting, especially in South Korea. According to CU’s commerce phone app Pocket CU, individuals in their 30s are the most active in purchasing these gold bars, accounting for over 41% of total sales. This is followed by customers in their 40s at 35.2%, individuals in their 50s at 15.6%, and those in their 20s at 6.8%. This indicates a growing interest in gold investment among younger generations, who are exploring gold as a way to diversify and protect their assets in the wake of financial uncertainties.
The World Gold Council reported a 27% year-on-year increase in the demand for gold bars and coins in South Korea during the first quarter of this year. This surge in demand can be attributed to the rising prices of gold globally. Moreover, as the Korean won depreciates against the dollar, domestic investors are turning to gold as a safe haven asset to protect their wealth. Prices of gold in South Korea have reached record levels, with the Korea Gold Exchange quoting a price of 456,000 won ($335.3) for 3.75 grams or 0.13 ounces of gold. This trend reflects a broader shift towards alternative assets like gold in the face of economic instability.
South Korea is not the only country witnessing a surge in gold investment among younger demographics. The World Gold Council highlighted a global trend of growing interest in gold among younger investors, particularly in Asia. Economic uncertainties, inflation concerns, and volatile financial markets have prompted a new generation of investors to turn to gold as a means of diversification and asset protection. China, for instance, has seen a rise in the purchase of small gold beans in glass jars among its youth, indicating a similar shift towards gold investment in the region.
The increasing demand for gold bars in South Korea’s convenience stores reflects a larger trend of gold investment among younger demographics seeking to safeguard their assets in turbulent economic times. As global markets continue to grapple with uncertainty and volatility, gold remains a reliable asset for wealth preservation and diversification. The accessibility of gold bars in everyday locations like convenience stores makes it easier for a broader base of investors to participate in this alternative investment option. Whether as a collector’s item, a gift, or a long-term investment, gold bars have found a new market in South Korea’s retail landscape.
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