'Mini Gold' Gaining Attention with Record-High Prices... 100g Unit Transactions Double

by Son Seonhee

Published 12 Apr.2023 14:02(KST)

Updated 12 Apr.2023 14:24(KST)

As gold prices soar to record highs, the scale of transactions in the domestic gold market has also increased sharply. This is interpreted as a result of investors' rapidly growing interest in gold, a relatively safe asset, amid expanding uncertainty in the global financial markets and rising concerns about an economic recession.

'Mini Gold' Gaining Attention with Record-High Prices... 100g Unit Transactions Double

According to the Korea Exchange on the 12th, the transaction value in the KRX Gold Market over the recent month (March 10 to April 10) was 171.9 billion KRW, a 71.2% increase from 100.4 billion KRW in the previous month (February 7 to March 9). During the same period, the amount of gold traded rose by 59.7%, from 1.3 tons to 2.1 tons. As more market participants sought to trade gold, the number of active accounts with trading activity in the KRX Gold Market over the recent month reached 19,958, up 53.3% compared to the previous month.

The sharp increase in gold trading volume and transaction value is due to investors' heightened interest as gold prices surged to all-time highs. On March 9, just over a month ago, the price of 1kg gold in the KRX Gold Market was 76,950 KRW per gram, but on the 7th, it reached 86,330 KRW, setting a new record high since the establishment of the KRX Gold Market. Domestic gold prices are determined by a combination of international gold prices, exchange rates, and domestic supply and demand factors.

Notably, individual investors accounted for the largest share of total trading volume over the recent month at 46.2%, followed by institutions at 36.3%, and precious metals businesses at 15.6%. As individual investors became more active in gold trading, the trading volume of the 100g product (Mini Gold) more than doubled in a month, increasing from 40.6kg to 129.3kg.

A Korea Exchange official stated, "We will continue efforts to improve the system and revitalize the market in cooperation with related organizations to ensure that gold trading through the KRX Gold Market is conducted transparently and fairly." They added, "We plan to strengthen communication with market participants, including financial investment firms, precious metals businesses, and general investors, to actively resolve any difficulties encountered during trading."