The Rise of Gold Bars in South Korea’s Convenience Stores

South Korea’s convenience stores are now offering a new and unexpected item on their menu – gold bars. The country’s largest convenience store chain, CU, has teamed up with the Korea Minting and Security Printing Corporation (KOMSCO) to provide customers with mini gold bars, and they have been flying off the shelves. These finger-nail sized gold bars come in various weights ranging from 0.1 gram to 1.87 gram, with prices varying depending on the weight. For example, a 1.87 gram bar sells for 225,000 won ($165.76) and a 0.5 gram bar sells for 77,000 won. The 1 gram bars, priced at 113,000 won each, were sold out within just two days of hitting the shelves.

According to reports from CU’s commerce phone app, Pocket CU, consumers in their 30s were the most active in purchasing these gold bars, making up over 41% of total sales. The demographic breakdown goes on to show that those in their 40s accounted for 35.2% of the sales, followed by individuals in their 50s at 15.6%. Surprisingly, people in their 20s only made up 6.8% of all sales. This skew towards older buyers could indicate a trend where more mature investors are seeking to diversify their assets in uncertain economic times.

The surge in demand for gold bars and coins in South Korea is part of a larger trend that saw a 27% increase year on year in the first quarter of this year, according to the World Gold Council. This rise in demand is attributed to the escalating prices of gold, prompting investors to turn to the precious metal as a safe haven asset. The depreciation of the local currency also plays a role, making gold a more attractive investment option. Head of markets strategy at UOB, Heng Koon How, notes that in times of economic uncertainty, the demand for gold tends to rise as investors seek stability and protection for their wealth.

The interest in gold as an investment is not limited to South Korea. Countries like China are also experiencing a surge in gold purchases, with the collecting of small gold beans in glass jars becoming a trend among the youth. The trend of younger investors turning to gold is not surprising, as economies in Asia grapple with inflation and financial uncertainty. Gold prices have reached record highs, prompting investors of all ages to explore diversification strategies and asset protection through investments in precious metals.

The convenience and accessibility of gold bars in South Korea’s convenience stores have made investing in gold more appealing to a wider range of consumers. The prevalence of economic uncertainty and rising gold prices have driven the demand for gold as a safe haven asset. As more investors, especially younger ones, look to diversify their portfolios and protect their assets, the trend of investing in gold is likely to continue growing. Ultimately, the rise of gold bars in convenience stores reflects a larger global trend of increased interest in gold as a valuable investment option.