"If you exchange ten don of dolbanji, the total fee is 90,000 won, which includes an analysis fee of 60,000 won and a processing fee of 30,000 won. You can take home a gold bar for that amount."

Gold bar products are displayed at the Korea Gold Exchange in Jongno-gu, Seoul. Photo by Yonhap News

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On September 21, at a jewelry shop in the precious metals district of Jongno-gu, Seoul, a "gold exchange" was taking place. Customers were exchanging gold items they had at home, such as dolbanji (traditional Korean baby rings) and gold necklaces, for gold bars. The shop staff weighed the gold items brought in by customers to confirm the amount in don, then calculated the analysis fee and gold bar processing fee for each item using a calculator. Choi (64), who exchanged a two-don pure gold ring for a two-don gold bar, said, "I visited my regular shop to exchange my mother-in-law's ring for a gold bar," adding, "I thought a gold bar would be easier to store for a long time than an unused ring, so I came with a friend to the jewelry shop."

An employee is organizing pure gold products at the Korea Gold Exchange in Jongno-gu, Seoul. Photo by Yonhap News Agency

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As gold prices continue to hit record highs, more people are exchanging gold jewelry at home for gold bars. With the rise in gold prices, there is a movement to view gold as a long-term investment tool and to turn unused gold into assets. Instead of selling gold products and then purchasing gold bars, customers can simply pay the analysis fee and gold bar processing fee to exchange them directly. Inquiries at five jewelry shops in Jongno that offer gold exchange services showed that the cost to exchange ten don of dolbanji ranged from a minimum of 90,000 won to a maximum of 170,000 won. A detailed breakdown revealed that the analysis fee averaged between 60,000 and 70,000 won, while the gold bar processing fee ranged from 30,000 to 100,000 won.

This is because gold bars have an advantage in valuation when trading compared to gold products. A shop owner in his forties in Jongno explained, "Even if a gold product is made of pure gold, about 0.01% of solder is used in the manufacturing process. When trading, this non-gold portion is excluded, so as gold becomes more expensive, the analysis fee structure rises accordingly." Ji Yeonhwa (63) said, "I quickly lose interest in accessories and rarely wear them, but having a gold bar gives me peace of mind. When my gold ring at home became a gold bar, it felt like I had acquired a real asset." Kim (55), who was standing nearby, commented, "Compared to gold keys or dolbanji, gold bars are more refined and take up less space, making them a more stable asset."

The price of gold has risen about 40% this year alone, with the price of one don (3.75g) surpassing 700,000 won.

As of the 25th, the purchase price of one don of gold at the Korea Gold Exchange is 747,000 won.

Kim Jungsik, Professor Emeritus of Economics at Yonsei University, explained, "With the increase in dollar supply and expanded liquidity, along with difficulties in the U.S. economy, demand for tangible assets is rising."

"Unlike gold products that become cheaper when crafted and sold, gold bars have no crafting fees, making them attractive for investment purposes, which seems to have increased demand." Getty Image Bank