South Korea’s Convenience Stores Become Gold Mines: Mini Gold Bars Sell Like Hot Cakes
A Golden Opportunity
South Korea’s bustling convenience stores are not just selling snacks and drinks anymore. They’ve become unlikely havens for a precious commodity: gold. CU, the country’s largest convenience store chain, has partnered with the Korea Minting and Security Printing Corporation (KOMSCO) to offer tiny gold bars to its customers. And they’re flying off the shelves faster than you can say “treasure chest.”
Precious Fingernails
These miniature bars, ranging in weight from 0.1 gram to 1.87 grams, have been a hot commodity since they hit the shelves in April. They’re available in various sizes, with prices ranging from 77,000 won (5.76) for a 0.5 gram bar to 225,000 won (5.3) for a 1.87 gram bar.
- 50% of Purchases: People in their 30s and 40s have been the most eager to grab these precious nuggets, accounting for over 80% of sales.
- Sold-Out Success: 1 gram bars, priced at 113,000 won each, sold out within a mere two days, demonstrating the high demand for these unique treasures.
- Gold with a Personal Touch: The bars come with personalized messages like congratulations, birthday wishes, and even personality-specific designs, making them perfect for special occasions or as a thoughtful gesture.
Gold Fever in South Korea
This sudden obsession with gold among young South Koreans mirrors a broader trend of increased interest in precious metals. In the first quarter of 2023, South Korea’s demand for gold coins and bars surged by 27% year-on-year, reaching 5 tons. This was the sharpest quarterly increase in over two years, according to the World Gold Council (WGC).
It makes sense that many younger investors are exploring gold as a way to diversify and protect their assets.Shaokai FanWorld Gold Council Head of Central Banks
Global Gold Craze
South Korea isn’t alone in its newfound love for gold. Other convenience stores in the country, such as GS25, have jumped on the gold bandwagon, offering small gold wafers through vending machines.
This global gold frenzy is partly driven by economic uncertainty, as investors seek safe haven assets to protect their wealth. Moreover, in many Asian countries like South Korea and China, gold holds cultural and social significance, making it a popular choice for investments and gift-giving.
Diversify Your Portfolio with Gold
Head of markets strategy Heng Koon How of UOB encourages investors to consider diversifying their portfolios with gold, especially during times of financial uncertainty. “Gold has historically been a hedge against inflation and currency depreciation,” How says.
Whether it’s mini bars in South Korea or gram-sized beans in China, the demand for gold remains robust, appealing to both young and old investors who seek to safeguard their financial futures while giving a nod to tradition. So, next time you’re craving a snack or a precious asset, head to your nearest convenience store and grab yourself a piece of the gold rush!
Data sourced from: cnbc.com
