As international gold prices continue to soar, money is flowing into bank gold banking. According to reports, more than 53 billion won has poured into commercial bank gold banking just one month into the new year. This surge is attributed to indications that a global tariff war initiated by U.S. President Donald Trump is escalating, leading to a record high in gold prices, which are considered a safe asset.
According to the financial sector on the 6th, the balance of gold banking at three domestic commercial banks (KB Kookmin Bank, Shinhan Bank, and Woori Bank) was reported to be 835.3 billion won at the end of January. This is an increase from approximately 782.2 billion won at the end of December last year, marking a shift of 53.1 billion won into gold banking within a month.
Gold banking is a 'gold account' that allows investment in gold similar to bank deposits. It is offered by KB Kookmin Bank, Shinhan Bank, and Woori Bank. One of the advantages is that customers do not have to physically purchase gold; instead, banks buy gold according to market prices and accumulate it in the account, facilitating small-scale investments without the need to store gold.
As gold prices steadily rose last year, the balance in gold banking continued to increase. At the end of January 2024, it was at the level of 566.8 billion won. Compared to that time, it has increased by 47%. The number of gold banking accounts has also seen a rise of over 20,000 within a year, indicating growing interest.
Gold prices have reached an all-time high in February. The Trump administration imposed an additional 10% tariff on China, which has prompted China to respond. As of 4th, in U.S. local time, the spot price of gold reached $2,845.14 per ounce, setting a new record. The gold futures price also increased, with the closing price for April futures at the New York Mercantile Exchange reaching $2,875.80 per ounce, up 0.7% from the previous day.
The gold price traded on the domestic exchange reflects a similar trend. According to the Korea Exchange, as of 9:55 a.m. on the 6th, gold was trading at 150,000 won per gram, up 1.47% from the previous trading day (147,820 won). The previous day's spot price of gold per gram was 147,820 won, marking the highest closing price on record.
The continuous rise in gold prices last year and the reason for the further increase is that uncertainty in the global economy has driven a significant rise in demand for safe assets. Following President Trump's inauguration last month, the upward trend in gold prices accelerated due to concerns over the tariff war. At the same time, the price of Bitcoin, dubbed 'digital gold,' which once surpassed $109,000, plunged to around $96,000, indicating heightened insecurity regarding other assets and a shift toward investments in safe assets.
A representative from a commercial bank noted, "As economic uncertainty stemming from Trump increases, the movement to purchase gold may intensify; however, since prices have already risen significantly, the potential for further increases might be limited. Nonetheless, investing in bank gold banking is much more convenient than holding gold, which is why capital appears to be flowing into gold during this rising market."