South Korean investors are increasingly turning to gold as a safe-haven asset. (Image courtesy of Yonhap)
SEOUL, Dec. 13 (Korea Bizwire) – South Korean investors are increasingly turning to gold as a safe-haven asset, driven by a combination of domestic political turbulence and international geopolitical tensions. The trend comes as gold prices show signs of rebounding after a brief November dip, bolstered by news of renewed Chinese gold purchases following October’s record highs.
According to a Korea Economic Daily survey conducted through NH Investment & Securities, new gold trading accounts reached a yearly high of 6,527 in November, marking a 255.31% increase from January’s 1,837 accounts. The surge began in April with 3,651 new accounts as Middle East tensions escalated following Israel’s first attack on Iranian mainland, before seeing another sharp increase in October with 6,213 accounts.
The second half of 2024 has already surpassed the first half’s total of 14,562 accounts, with 22,846 new accounts opened between July and December 7. Active trading accounts have also shown consistent growth, rising from 8,095 in September to 16,875 in November.
Notably, younger investors are leading the gold rush, with those in their 30s accounting for 30.80% of all gold trades, followed by investors in their 40s (24.72%) and 50s (21.26%). Even investors in their 20s comprised 15.63% of trades. Significant individual purchases have been recorded, including a 600 million won investment by a customer in their 60s just before the U.S. presidential election.
Gold prices on the COMEX have risen 33% this year, with February futures closing at $2,718.40 on December 10, up 1.2%. The surge comes as China’s central bank reported its first gold purchase since May, adding 160,000 troy ounces to reach 72.96 million troy ounces (about 2,068 tonnes) at the end of November.
Macquarie Investment Bank has raised its gold price forecasts, projecting average prices of $2,650 per ounce in Q1 2025 (up 1.9%) and $2,800 in Q2 (up 12% from previous estimates). Analysts attribute the potential continued rise to Chinese demand recovery and inflation concerns in the U.S. following Donald Trump’s election victory.
M. H. Lee (mhlee@koreabizwire.com)
