South Korea’s convenience stores have seen a new addition to their menu items – gold bars. The country’s largest convenience store chain, CU, has partnered with the Korea Minting and Security Printing Corporation (KOMSCO) to offer customers mini gold bars that have been selling rapidly. These small gold bars, ranging from 0.1 gram to 1.87 gram, are now available for purchase at CU outlets. Priced between 77,000 won and 225,000 won, these gold bars are adorned with congratulatory messages, birthday wishes, and even personalized designs.
The demand for gold bars and coins in South Korea saw a 27% increase year on year in the first quarter of this year. This surge in purchasing gold was triggered by the rising prices of the yellow metal. Customers in their 30s were the most active in buying these gold bars, making up over 41% of the total sales since the launch. This was followed by individuals in their 40s at 35.2%, those in their 50s at 15.6%, and lastly, people in their 20s at 6.8%. This shift in consumer behavior towards investing in gold signifies a move towards diversification and asset protection.
Aside from CU, other convenience store chains in South Korea are also capitalizing on the surge in demand for gold. The GS25 convenience store chain, for example, offers customers the option to purchase small gold wafers from vending machines. During times of economic uncertainty, such as when the local currency depreciates, the demand for physical gold jewelry rises as investors seek safe haven assets. The Korea Gold Exchange reported a record surge in gold prices, reaching 456,000 won for 3.75 grams or 0.13 ounces.
The trend of investing in gold is not limited to South Korea. Globally, there has been a rise in investment interest among a younger cohort in Asia as gold prices continue to soar. This shift is driven by inflation and financial uncertainty in many Asian economies, prompting investors to diversify their portfolios and protect their assets. In China, for instance, the collecting of 1 gram small beans in glass jars has become a popular trend among the country’s youth. Additionally, China has overtaken India as the world’s largest buyer of gold jewelry. In the U.S., retail giant Costco saw success in selling one ounce gold bars priced at close to $1,900, indicating a global interest in gold investment.
The rise of gold bars in South Korean convenience stores reflects a broader trend of increasing interest in gold investment worldwide. As economic uncertainties persist and gold prices reach record highs, investors are turning to gold as a safe haven asset and a means of diversifying their portfolios. With convenience stores making gold bars easily accessible to the public, it is evident that the appeal of gold investment transcends borders and age groups, making it a popular choice among both seasoned investors and younger generations alike.
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