Inexpensive gold, inflation concerns overlap and popularity… Shortage of gold bars in banks

Input 2021.03.16 15:31

Gold bars sold by commercial banks are showing shortage. As stock market volatility increased and inflation (increased inflation) anxiety spread, the sentiment to avert risk through gold spread. In addition, investors are flocking to look for a’low price buy’ opportunity while the gold price is moving sideways at a low level.

According to banknotes on the 16th, Woori Bank recently announced that the supply of 10g and 100g gold bars has been temporarily delayed. Previously, if you ordered a gold bar, you could receive it within up to 7 business days, but the delivery period was extended by up to two weeks by the end of this month. Gold bars are produced by Korea Gold Exchange 3M. Other commercial banks that receive gold bars from the same place are in a similar situation.

The reason for the disruption in the supply of gold bars was that demand increased significantly compared to the quantity produced by the Korea Gold Exchange 3M. A commercial bank official said, “Due to the drop in gold prices, the amount of money that the Korea Gold Exchange 3M needs to make has doubled compared to the previous one.” China is the world’s largest gold consumer, and Korea also imports a certain amount.

According to the New York Merchandise Exchange on the 15th (local time), gold closed at $1728.90 per troy ounce, up $9.40 (0.54%) from the previous trading day. Although it is the highest since the 2nd ($1733.10), it is still about 16% ($318.4) lower than that of August 6 ($2051.50), which was the highest in the past year.

If you want to own gold spots such as gold bars, you have to pay various taxes such as transfer tax, and there is a burden of storage. Accordingly, indirect gold investment products are also attracting attention. Kim Hyun-seop, deputy chief of KB Kookmin Bank’s Dogok Star PB Center, said, “In order to cope with the rise in inflation, there were many asset-priced customers who showed interest in gold investment but hesitated because of the high price.” “There is a tendency to buy in installments through products that are sold,” he said.

For the same reason, the sales volume of gold banking (gold passbook) handled by banks is also increasing. Gold banking is a derivatives financial product that deposits in grams of gold holdings while depositing KRW or dollar into an account according to the gold and silver market prices announced by banks. KB Kookmin, Shinhan, and Woori Bank’s accumulated gold banking sales weight as of the 9th was 1,36kg. This is an increase of more than 11% from 9010kg from last December.