Convenience stores in South Korea are seeing a surge of younger buyers snapping up affordable, bite-sized gold bars. (Image courtesy of GS25)
SEOUL, May 22 (Korea Bizwire) – As economic headwinds stir up demand for safe-haven assets, convenience stores in South Korea are seeing a surge of younger buyers snapping up affordable, bite-sized gold bars, underscoring the appeal of the precious metal as a compact investment during turbulent times.
Convenience store operators say sales of card-sized gold bars — some as small as one gram — have been brisk in recent months as rising uncertainty over the global economy has sent gold prices soaring.
With their accessibility and fixed pricing, the minimalist gold products are proving a hit with consumers in their 20s and 30s looking to hedge against volatility.
At GS25, a major convenience store chain run by GS Retail, sales from 30 gold vending machines installed at its outlets nationwide had reached around 3.6 billion won as of last month.
More than half the buyers were in their 20s and 30s, according to the company.
For Mother’s Day, GS25 even marketed special 3.75-gram gold carnation pendants and bars as novel gifts.
CU, another top convenience operator, sold out of its one-gram gold bar offerings within two days of a limited April release in partnership with the Korea Minting and Security Printing Corporation, the state-run mint.
Overall first-quarter sales of gold bars under one gram at Korea Minting jumped 68 percent from the previous quarter, the mint said.
At CU’s e-commerce app PocketCU, data showed that the biggest buyers of the credit card-sized bars were those in their 30s at 41.4 percent, followed by those in their 40s.
The combined share for customers in their 20s and 30s neared half the total at 48.3 percent.
The convenience of being able to purchase fractional amounts has been a big lure. While traditional jewelry stores can be intimidating with wildly fluctuating prices, the fixed-rate system at convenience stores provides predictability.
“Instead of playing the lottery like before, I’ve been buying gold for investment as prices rose,” said Kim, an office worker in his 30s in Seoul.
“The vending machines let me discreetly buy small amounts at set rates, so I can forecast my spending.”
Viewing the gold bar sales as a creative way to bust through conventional distribution channels, convenience store operators plan to expand such offerings.
“We spotted early the consumer trends toward small investment and a preference for safe assets, allowing GS25 to become an offline investment platform through its gold vending machines,” said GS25 representative Yoon Ji-ho.
Ashley Song (ashley@koreabizwire.com)
