Korea Gold Exchange "Gold Bar Sales Increase 160%"... Active Gold Trading

[Asia Economy Reporter Hyungsoo Park] As stock market volatility increases, interest in gold investment is growing.

According to Korea Gold Exchange, a subsidiary of ITCEN Group, the sales volume of its gold bars distributed through commercial banks reached 85kg in January this year, a 160% increase compared to the same period last year. Sales in the home shopping sector also surged.

Kim Hyun-mo, CEO of Korea Gold Exchange, said, "Recently, inquiries about gold bar purchases from asset holders have increased through franchise stores including the Cheongdam branch of Korea Gold Exchange," adding, "These inquiries are turning into actual purchases, and we are accelerating efforts to secure inventory in response."

The growing interest appears to be due to the KOSPI index falling and gold prices rising. The KOSPI index closed at an all-time high of 3305.21 on July 6, 2021, but dropped about 18% to 2704.48 on the 14th of this month. During the same period, gold prices rose 8% from 285,000 KRW to 310,000 KRW.

Since recording 266,500 KRW on March 31 last year, gold prices have been on a gradual upward trend. Inflation concerns, fluctuations in international energy prices due to the Ukraine regional conflict, and the bankruptcy crisis of Chinese real estate companies are influencing gold prices.

Song Jong-gil, Executive Director of Korea Gold Exchange, explained, "The international gold price started this year at $1,830 per ounce, initially declining but then rebounding," adding, "This month, trading has been occurring at levels exceeding $1,870 per ounce."

He continued, "With central banks of major countries continuing to purchase gold, the international gold price this year is being strongly supported by inflation concerns," and said, "it would be a reasonable judgment to place weight on the upward trend."

The London Bullion Market Association (LBMA) foresees that gold prices this year will not be affected by COVID-19 and geopolitical tensions and projects the highest average price at $1,965 per ounce. German advanced materials company Heraeus expects gold prices to rise up to $2,120 this year.

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