Gold grilles arranged in the Korean Gold trade in Seoul, South Korea.
SEONGJoon Cho | Bloomberg | Getty Images
South Korea’s state mint is struggling with a lack of gold bar in the midst of a strong demand for precious metal.
Korea mint and security printing corporation (Komsco), which is responsible for the production and distribution of various security products, suspended sales of gold bars Last month.
Komco has attributed the suspension to problems with the procurement of raw material supply, the Google translation states on its website. Mint usually supplies the lever strips Korean commercial banks, shops and network shopping centers.
Slot machines for sale In the capital of Seoul, allegedly sold out the nail -sized gold grids, according to local mediaWhile consumers did their best to buy property with a safe haveen.
“The sudden jump of demand for gold in South Korea has led to Korean banks to temporarily suspend the sale of gold bar at the request of Komsco, because there are not enough gold bars in the country to fulfill local demand,” said Robin Tsui, APAC Gold Strategist on Global Advisors State Street.
The demand was largely managed by retail investors, said CNBC industry observers, and many have inserted themselves into property as protection against domestic political unrest and concern for economic and geopolitical insecurity caused by Tariffs of US President Donald Trump.
If you are worried about the foreign currency foreign currency, you move on to gold. If you are not sure of your stock market, you would switch to gold.
South Korean President Yoon Suk Yeol is currently awaiting a verdict on the impeution after his short -term statement on martial arts law 3. December.
MPs also voted for pimp Vertear of President Han Duck-Soo at the end of last year, inserting the country into the renewed political turbulence. Another acting president of South Korea after Han, Choi Sang-Mok, faced some opposition to the public about what they see as actions interfere with the effort to catch yon.
Domestic restlessness of South Korea came with Trump’s return to the White House and, along with her, the appearance of a trade war escalation.
Gold proven protection against depreciation of local currency led to greater demand due to the “fast depreciation” of Korean conquered, especially in the last quarter of 2024, said Ray Jia, head of research at the World Council for Gold.
Golden Rod advertisement at the Gold Exchange Korean store in Seoul, South Korea, on Friday, October 13, 2023.
Bloomberg | Bloomberg | Getty Images
Investments in the bar and coins in South Korea rose 29% in the fourth quarter last year to 5.9 tons, according to data provided by the World Gold Council, which coincided with 11% of the Korean Vicelinary Department of the US Dollar during, according to the LSEG data.
In the meantime, Market observers told CNBC that the capital of South Korea’s capital market was not too exciting for local investors.
“If you are worried about the deval currency, switch to gold. If you are not sure of your shares market, you would switch to gold,” said Bernard Dahdah, analyst of noble metals in Natixis.
While the reference value of South Kopiem Kosice recorded a 2% rise of December 3, the index recorded an exodus of 224.88 billion won ($ 155.9 million) among individual investors between December 3 Data from the stock market. This is compared to 10% profit on the video of the price of gold in the same period.
“Gold’s superior yields due to domestic shares have encouraged more demand for gold,” said Tsui State Street Global Advisors.
Regional gold deficiency
Although in recent months they have recognized more gold demand, some say it is also a wider problem of supply.
A strong American demand for gold in recent months has been Remarking of the lever from several countries While traders are trying to supply in preparation for Trump Tariffs in Canada and Mexico.
“There are a regional deficiency of gold, led by London, but now South Korea, because Metal goes to the US and thus there is less supply in these markets,” said the head of the MKS Pamp strategy Nicky Shiels.
Korean refineries and wholesalers probably got a phone call and said, “We will buy you a whole stock on a good premium, paste it on the plane and send it to New York.”
John Reade
World Golden Council
Complicating factor is that traders hoping to move gold to American comex depositors They largely deliver a kilogram of rods towhich are usually available only in selected regions in Asia and the Middle East.
“Korean refineries and wholesalers probably got a phone call and said,” We will buy you a whole stock on a good premium, paste it on the plane and send it to New York, “said the market strategist of the Golden Council for Asia and Europe, John Reade.
In addition, a greater incentive to produce larger pounds that usually accept Comex warehouses can encourage refineries to be transferred to the production of these larger shipping bars instead, TSUI said.
