As gold prices surged sharply last year and investors snapped up gold spot exchange-traded funds (ETFs), the balance of gold spot ETFs held by individual clients at major securities firms was found to be nearing 3 trillion won.

As the Donald Trump administration launches an investigation into Fed Chair Jerome Powell, concerns over the Federal Reserve's independence grow and gold hits a record high. On the 12th (local time), on the New York Mercantile Exchange, the spot gold price broke through $4,600 per ounce and closed at $4,609.58, up 2.2% from the previous session; during the session it surged to $4,629.94, setting an all-time record. The photo shows gold products on display at Korea Gold Exchange in Jongno-gu, Seoul, on the 13th afternoon. /Courtesy of News1

An analysis of data received on the 19th from the office of Kim Sang-hoon of the People Power Party showed that as of the end of last year, the value of gold spot ETF holdings in general accounts, individual savings accounts (ISA), individual retirement pensions (IRP), and pension savings accounts at the top 10 securities firms (Daishin, Meritz, Mirae, Samsung, Shinhan, Kiwoom, Korea Investment & Securities Co., Hana, KB, NH) reached 2.9931 trillion won.

Investors in particular concentrated on buying gold spot ETFs through general investment accounts. By account type, 48.05% of the total amount was concentrated in general accounts.

Notably, the "gold-tech" boom through IRP and pension savings accounts for retirement preparation was also strong. A total of 37.97% of holdings was tied up in these pension accounts, while the share of ISA accounts, which offer strong tax benefits, was 13.98%.

Graphic=Jeong Seo-hee

Gold prices began a full-blown surge last year. From early last year to year-end, gold prices jumped a whopping 60%. As global geopolitical tensions rose, money poured into gold, the representative safe-haven asset.

Domestic investors in particular focused on gold spot ETFs, which allow easy investment in physical gold. There are currently two gold spot ETF products launched domestically. They are the ACE KRX Gold Spot ETF first introduced in 2021 by Korea Investment Management, and the TIGER KRX Gold Spot ETF introduced last year by Mirae Asset Management.

Recently, these ETFs each topped 4 trillion won and 1 trillion won in assets under management (AUM). The ACE KRX Gold Spot ETF's AUM was tallied at 4.1365 trillion won. This ETF surpassed 3 trillion won in AUM in Nov. last year, meaning it increased by 1 trillion won in about two months. The TIGER KRX Gold Spot ETF's AUM was also tallied at 1.15 trillion won.

Gold prices have continued to rise this year. The Korea Exchange (KRX) gold spot price stood at 221,930 won per gram on the day, up 6.29% from early this year.

Sim Su-bin, a Kiwoom Securities researcher, said, "As Iran's geopolitical risk has come to the fore and risk-off sentiment has strengthened, the U.S. December consumer price index was released in line with market expectations," noting, "This reflects continued expectations that the U.S. Federal Reserve (Fed) will maintain a rate-cutting stance."

※ This article has been translated by AI. Share your feedback here.