Demand for gold bars soaring

Seoul-Korea (April 16)  Gold has become an attractive investment product again amid the increasing geopolitical risks on the Korean Peninsula, fueled by North Korea's possible nuclear test, according to the Korea Exchange (KRX) Sunday.

In particular, gold bars weighing only 10 or 100 grams have been selling like hot cakes in recent weeks as they are easy to carry in an emergency. In addition to the heightening military tension between the United States and North Korea, the Syrian conflict and other geopolitical uncertainties have caused a surge in the value of the precious metal.

The local bourse operator said about 400 mini-gold bars were sold daily this month, up sharply from a daily average of 100 in March. Normally, 1-kilogram gold bars account for the majority of the sales but the ones weighing less than one kilogram have gained popularity among investors because they are easy to carry in the case of an emergency, it said.

Last Friday, the one kilogram gold bar was sold for 54 million won ($47,370), while buyers paid 5.4 million won for the 100 gram bar and 550,000 won for 10 gram bar.

"An increasing number of wealthy investors in their 50s and 60s, seeking safer assets, have bought mini gold bars over the past two weeks, expressing concerns over growing possibility that the United States could attack the North over the latter's missile and nuclear tests," a KRX official said. "In addition to mini gold bars, the sales of 1 kilogram bars have jumped sharply."

Propelled by soaring demand, the price of gold has been heading north, according to the KRX, which said 3.75 grams of gold was sold for 223,000 won last Friday, the highest since last August. The value of gold has been jumping elsewhere, particularly, since April 7 when the United States fired missiles at a Syrian airfield suspected of carrying out a chemical weapons attack on civilians.

"If the status quo remains unchanged, the demand for gold bars will continue to rise. So will their prices," the official said.

Source: TheKoreanTimes