Korea Gold Exchange Benefits from Rising Gold Prices... Trading Volume Increases 28 Times

Silver Prices Fluctuate Due to Demand for Solar Panels and More
Silver Bar Investments Also Surge

[Asia Economy Reporter Lim Jeong-su] Korea Gold Exchange, incorporated into the ITCEN Group, is expected to greatly benefit from the rise in gold prices. The volume of gold transactions increased about 28 times compared to last year, and transaction fee income is expected to be substantial.

According to the Gold Exchange, the average international gold price per ounce rose sharply from $1,269.6 in 2018 to $1,392.6 last year, and $1,794.32 this year. Recently, gold prices have reached their highest level since November 2011.

The surge in gold prices has led to a rapid increase in gold sales for capital gains. This year, the volume of gold transactions reached 38,211 cases (approximately 3,600 kg), which is 37 times more in number of cases and 28 times more in quantity compared to 1,045 cases (about 127 kg) last year.

A representative from the Gold Exchange explained, "With the spread of the novel coronavirus infection (COVID-19), more people are working from home, and the volume of e-commerce online mall transactions at the Gold Exchange has also increased by 1,256 cases compared to the previous year," adding, "This corresponds to an increase of about 6.8 billion KRW in sales revenue."

The Gold Exchange currently attributes the rise in gold prices to the rapid increase in confirmed cases of the novel infectious disease (C-19) undergoing a second wave worldwide. Due to concerns over a global economic recession and the inevitability of additional quantitative easing (QE) policies by central banks in various countries, investors are increasing demand for gold as a safe-haven asset.

Along with the increase in gold transaction volume, silver bar sales have also surged significantly. Silver sales increased from 8.78 tons in 2018 to 36.5 tons in 2019, and have accumulated to 38 tons so far this year. By early July this year, sales volume had already surpassed the total sales of the previous year.

The Gold Exchange forecasts that silver demand will continue to rise due to the increasing trend of solar panels. The amount of silver used in solar panels increased from about 2,100 tons in 2011 to 3,110 tons in 2019.

A representative from the Gold Exchange explained, "By 2025, solar power generation capacity is expected to double from the current level, resulting in the use of approximately 6,200 tons of silver," adding, "This accounts for 22% of the total annual global industrial silver consumption." He further added, "For these reasons, major specialized institutions are placing weight on the possibility of silver price increases."

This content was produced with the assistance of AI translation services.