"Buy While It's Cheap"... Retail Investors Snap Up KRW 30 Billion in Bank Gold Bars as Prices Fall, Flocking In at a Frenzy

About four times the monthly average from 2022 to 2024
The “small-scale gold investment” boom grows alongside gold banking

As gold prices, which had been on a steep upward run, have eased, investors hoping for a rebound are continuing to “buy the dip.” Gold bars sold by banks, which were once in short supply, have recently continued to sell at a pace of around KRW 30 billion a month.

2026 Byeongo Year Gold Bar. Yonhap News

According to the financial industry on the 5th, gold bar sales at the five major banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank—totaled KRW 32.2 billion in May, KRW 32.7 billion in June, KRW 31.4 billion in July, KRW 33.5 billion in August, and KRW 29.1 billion in September. Excluding last year, when gold prices surged, monthly sales averaged about KRW 8.5 billion over the three years from 2022 to 2024. By comparison, recent sales have grown to about four times that level.

Monthly sales of KRW 30 billion despite gold price correction...Demand to buy the dip persists

Gold bar sales have declined somewhat from previous levels as gold prices have retreated from their highs this year, but investor enthusiasm remains strong. A banking industry official explained, “As gold prices have fallen, demand from buyers seeking to purchase at lower prices in anticipation of a future rebound has continued.”

Banks are also expanding their gold bar suppliers and product ranges to meet rising demand for gold investments. Hana Bank began offering a new service on September 29 to broker the sale and purchase of gold bars from Samsung Gold Exchange. This adds Samsung Gold Exchange to its existing supplier, Korea Gold Exchange.

The gold bars supplied through Samsung Gold Exchange come in four sizes: 3.75 grams, 10 grams, 37.5 grams, and 100 grams. They can be purchased at Hana Bank branches. KB Kookmin Bank also resumed gold bar sales through its mobile app and internet banking on September 10. Woori Bank added 3.75-gram and 37.5-gram gold bars from Korea Gold Exchange in July, expanding its lineup to five products. Shinhan Bank added 112.5-gram, 375-gram, and 500-gram products in May, bringing the total number of gold bars it brokers for Korea Gold Exchange to seven.

Last year, “we couldn’t keep them in stock”...Banks expand supply networks

A customer visiting the Korea Gold Exchange's Jongno branch in Jongno-gu, Seoul, looks at mini gold bars. Photo by Kang Jinhyeong.

The decline in gold prices has had several causes. Because gold does not earn interest, it becomes relatively less attractive when U.S. Treasury yields rise. The 10-year U.S. Treasury yield surged to the 5% range, increasing downward pressure on gold prices. In addition, concerns about inflation stemming from high oil prices kept open the possibility of further tightening by the Federal Reserve (Fed).

Against this backdrop, banks are expanding their gold bar supply networks in response to the shortages that lasted from last year through the first half of this year. When gold prices surged in October last year and suppliers ran short of stock, NH NongHyup Bank halted sales of small gold bars and sold only 100-gram and 1-kilogram products through the end of the year.

Shinhan Bank also sold only 37.5-gram products for a time because of supply shortages, while KB Kookmin Bank, Hana Bank, and Woori Bank had to focus mainly on 1-kilogram gold bars through early this year. Supply conditions improved somewhat this year, allowing sales to resume, but shortages continued through the first half. As recently as April, customers at KB Kookmin Bank, Shinhan Bank, and Woori Bank could generally purchase only 1-kilogram products.

Having missed sales opportunities last year when they could not secure gold bars in customers’ preferred weights during the price surge, banks are expanding both their supplier base and the range of weights they offer. A banking industry official said, “There is a growing need to diversify suppliers and the weights available in advance to prevent missed sales opportunities due to supply shortages when gold prices surge.”

KRW 1.6 trillion in gold banking...Small-scale gold investment products also expand

1g investment gold nuggets and 0.5g bean-shaped gold are trading in the 100,000- to 200,000-won range. Korea Gold Exchange website.

Investment demand is also continuing through “gold banking,” which allows customers to buy and sell gold through bank accounts, in addition to physical gold bars. The gold banking balances at KB Kookmin Bank, Shinhan Bank, and Woori Bank surged from KRW 1.9296 trillion at the end of last year to KRW 2.4434 trillion at the end of January this year. The balance later declined as gold prices corrected, but stood at KRW 1.6714 trillion at the end of September. That was about 47% higher than the KRW 1.1394 trillion recorded at the end of September last year.

Banks are diversifying the weights they sell and the ways customers can invest, targeting those looking to start investing in gold with small amounts. KB Kookmin Bank added a 37.5-gram gold bar to a product offered in partnership with Korea Gold Exchange in August, while Woori Bank introduced a 3.75-gram product in July. Shinhan Bank has also expanded its selection by adding products in various weights.

KakaoBank launched a service on September 11 in partnership with Geumbang, a physical gold trading platform, allowing customers to save up for gold in small amounts over a set period. KakaoBank

On September 11, KakaoBank partnered with Geumbang, a physical gold trading platform, to launch “Save Gold,” a service that lets customers set a target weight and buy gold in installments over 26 weeks. Users can choose a target weight of 1, 2, 3, 5, or 10 don, then make weekly purchases in installments over six months at the prevailing gold price. The gold they purchase is secured as physical gold and stored in a professional vault operated by the Korea Securities Depository and its partner.

Amid intensifying investor enthusiasm, experts said, “Rising interest rates are generally a headwind for gold prices, but since the market has already priced in the possibility of further rate hikes to some extent, gold prices may not fall significantly even if actual monetary tightening continues.” With economic uncertainty and geopolitical risks persisting, demand for gold as part of asset allocation is expected to continue for the time being.

This content was produced with the assistance of AI translation services.