Investors starting to favor gold and dollars

Home > Business > Economy

print dictionary print

Investors starting to favor gold and dollars

Gold bars are displayed at the Korea Gold Exchange in Jongno District, central Seoul, on Thursday. Gold traded at 68,190 won ($61.2) per gram (0.04 ounce) on Thursday, up 9.5 percent compared to March 5, when the price hit 62,300 won. [NEWS1]

Gold bars are displayed at the Korea Gold Exchange in Jongno District, central Seoul, on Thursday. Gold traded at 68,190 won ($61.2) per gram (0.04 ounce) on Thursday, up 9.5 percent compared to March 5, when the price hit 62,300 won. [NEWS1]

With the growing fear of inflation, wealthy people are rushing into safe haven assets — gold and the dollar.
 
A 68-year-old man, a CEO of a medium-sized company in Korea, ran to the Korea Gold Exchange in central Seoul to purchase 18 gold bars worth 1.4 billion won ($1.26 million) in early May.
 
“When the economy remains unstable, nothing is better than gold,” he said. “I have this strong conviction that the gold prices will jump if I hold for a long time.”
 
A total of 1.1 trillion won of gold was sold between January and May, according to the Korea Exchange. That’s 60 percent of the total spending on gold full-year 2020, which was 1.82 trillion won.
 
In times of uncertainty, what wealthy people consider most important is how to keep their assets safe. They tend to hold more cash and invest in physical assets, according to Kim In-eung, manager at Woori Bank's sales team.
 
“Since the beginning of the year, many customers have been selling their shares and funds to take profits,” said Ju Myung-hee, head of Hana Bank’s Asia Seonsuchon PB Center in Songpa District, southern Seoul. “People who own a large amount of assets keep some 10 percent of their assets in safe havens like gold and dollars.”
 
With the high demand, gold prices are skyrocketing. The falling prices of cryptocurrencies also helped the rise. People once called bitcoin “digital gold” as the prices soared so quickly and sharply.
 
According to the Korea Exchange, gold traded at 68,190 won per gram (0.04 ounce) on Thursday. That’s up 9.5 percent compared to March 5, when the price hit the low for the year at 62,300 won.
 
“With the increasing price volatility of bitcoin, people's money moved to gold, which is a traditional hedge,” said Kim So-hyun, an analyst at Daeshin Securities.
 
Koreans tend to keep more cash on hand, especially dollars.
 
A businessman in Seoul, 70, who has 5 billion won of financial assets, recently deposited some 100 million won in his dollar account.  
 
“The value of dollar will rise further with growing concerns over inflation and tapering,” said the man.
 
Balance in dollar accounts at four commercial banks — KB Kookmin Bank, Shinhan Bank, Woori Bank and Hana Bank — totaled $55.47 billion as of May, up 13 percent compared to the end of last year.  
 
The local currency closed at 1,113.6 won against the dollar, up 0.3 won from the previous session's close. Compared to March 10, the lowest point of the year, it’s up 2.6 percent.
 
“It is likely that the United States, the country with the world’s fastest recovering economy, will move toward tapering soon,” said Min Gyeong-won, an economist at Woori Bank. “The value of local currency is expected to fall as low as 1,140 won by the end of the year.”
 
BY YEOM JI-HYEON, YOUN SANG-UN AND CHEA SARAH  [chea.sarah@joongang.co.kr]
 
 
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now

'; /*기사본문 body*/ advAdd(head,script); // 날개광고 ========================================== if($('#div-gpt-ad-1652251335091-0').length) { var dH = Math.ceil($(document).height()); var footerH = Math.ceil($("#sub-footer").height() + $("footer").height() + $("#sitemap-wrap").height()); var documentH = dH - footerH; var windowH ; var floatingBannerTop = $("#div-gpt-ad-1652251335091-0").position().top; window.addEventListener('scroll', function () { windowH = $(window).scrollTop(); if (windowH + Math.ceil($("#div-gpt-ad-1652251335091-0").height()) > documentH) { $("#div-gpt-ad-1652251335091-0").css("top", "-7px"); } else { $("#div-gpt-ad-1652251335091-0").css("top", floatingBannerTop); } }); } //========================================================== // 미주중앙 목록페이지 광고영역 종료 $('.tag_photoslide').bxSlider({ slideSelector: 'div.ab_photo' }); var serviceDate = "20210603194439"; var week = moment(serviceDate, 'YYYYMMDDHHmmss').format('dddd'); var monthAndDay = moment(serviceDate, 'YYYYMMDDHHmmss').format('LL'); $(".twentytwenty-container").twentytwenty(); $('#present_week').html(week); $('#present_month_day').html(monthAndDay); setFontSize(); //기사 load시 section Array 생성 setSectionCount(); // getSectionArticleList(); }); var analyticData = { articleId : "3090219", title : "Investors starting to favor gold and dollars", cmss_url : "https://koreajoongangdaily.joins.com/2021/06/03/business/economy/gold-dollar/20210603194513893.html", siteCd : "JAD", hp_thumbnail_img : "https://koreajoongangdaily.joins.com/data/photo/thumbnail/2021/06/03/ec06222d-a2d0-4363-970c-f5faade04ea0.jpg", topMenu : "business", subMenu : "economy", section : "Economy", reporters : "[{code=chea.sarah, jcms_rep_seq=0, name=채사라, jam_rep_seq=1901, blog=, email=chea.sarah@joongang.co.kr}]", articleType : "article" } if (analyticData.articleType == 'newsletter') { analyticData.sendSeq = ""; analyticData.userId = ""; analyticData.clickType = ""; analyticData.email = ""; } var reporters = '[{code=chea.sarah, jcms_rep_seq=0, name=채사라, jam_rep_seq=1901, blog=, email=chea.sarah@joongang.co.kr}]'; if(reporters != '[]' && reporters != ""){ reporters = reporters.match(/name\=.*?\,/)[0].replace("name=","").replace(",","") analyticData.reporters = reporters; } var fs = 3; // 폰트사이즈 function setFontSize(t) { if (t == 'tm') { fs--; } else { fs++; } if (fs <= 1) { fs = 1; } else if (fs >= 5) { fs = 5; } $('#article_body').removeClass('fs1 fs2 fs3 fs4 fs5'); $('#article_body').addClass('fs' + fs); // JCookie.SetCookie('ListPreviewFontSize', fs, 365); } //화면 인쇄 function pagePrint() { var title = "Investors starting to favor gold and dollars"; $('#article_data').printThis({ pageTitle : title, importCSS : true, loadCSS : [ "/resources/css/lib/print/print.css" ], removeInline : false }); //setTimeout("showUpt()", 334); } //이미지 뷰어 $('.image > a').click(function(e){ // 만약 이미지 뷰어가 슬라이드 뷰어로 전환되었던 상태라면 초기화 var src = $(this).children('img').attr('src'); var image = "
"; $(".image_area").append(image); // 클릭 된 부모요소 안에 이미지가 여러장일 경우는 슬라이드로 변경해야함 if($(this).children('img').length > 1){ e.preventDefault(); $(".image_area").addClass('slick'); fn_showSlider($(this)); }else{ $("#imgViewer").attr('src',src); $("#imgViewer").css('width','auto'); $("#imgViewer").css('max-width','100%'); $("#imgViewer").css('height','auto'); $("#image_viewer").css('display','block'); } }) function fn_showViewer(src){ $("#imgViewer").attr('src',src); $("#imgViewer").css('width','auto'); $("#imgViewer").css('max-width','100%'); $("#imgViewer").css('height','auto'); $("#image_viewer").css('display','block'); } function fn_hideViewer(){ $("#image_viewer").css('display','none'); if($('.image_area').hasClass('slick')){ $('.slick').slick('unslick'); $('.image_center').each(function(idx,item){ $(item).remove(); }); } } function fn_showSlider(parent){ var imgCount = parent.children('img').length; if(imgCount > 1){ $(".image_area").addClass('slick'); $(".image_area").empty(); } parent.children('img').each(function(idx,item){ var src = $(item).attr('src'); var slide = "
"; $(".slick").append(slide); }) slickInit(); } function slickInit(){ setTimeout(function(){ $('.slick').slick({ dots: false, infinite: true, speed: 300, slidesToShow: 1, adaptiveHeight: true, fade: true, cssEase: 'linear' }); }, 100); $("#image_viewer").css('display','block'); } var progressIndicator = '
'; $('body').append(progressIndicator); $('#i-am-progress-indicator').css('display','none') $(window).on('scroll', function(){ var viewDocument = $('#doc'); var viewDocumentHeight = viewDocument.outerHeight(); var viewDocumentOffset = viewDocument.offset().top; var stickyHeaderHeight = $('#header').outerHeight(); var startProgress = viewDocumentOffset - stickyHeaderHeight; var currentPercentage = ($(window).scrollTop() - startProgress ) / viewDocumentHeight * 100; $('#i-am-progress-indicator').css({ display: 'block', width: currentPercentage+'%' }); }); function getSectionArticleList(){ //count가 높은 section을 size 만큼 보여준다. var size = 3; var obj = getSectionCount(size); var cmssId = "3090219"; //KEY VALUE LIST. 필요. $.ajax({ url: '/article/sectionArticleList', type: 'POST', data: {"articleList" : JSON.stringify(obj), "size": size, "cmssId" : cmssId}, success: function (response) { //mustache var isShow = false; if(response != null && response.length > 0){ var toHtml = "" for(var i = 0; i