South Korea: Young people buy gold bars from vending machines!
In South Korea, gold bars can now be purchased as easily as energy drinks. Since September 2022, gold vending machines have been installed in shopping malls by GS Retail. They are accessible on a self-service basis and are very popular with the public! Interestingly, most shoppers are in their twenties and thirties. This brings the debate about access to physical precious metals back onto the table.
GS Retail’s crazy project
GS Retail is a South Korean retail company based in Seoul. It has over 10,000 convenience stores across South Korea. The company noticed the public’s interest in precious metals. So, in September 2022, it installed vending machines in five of its stores.
GS Retail’s vending machines operate on the same principle as conventional machines. They offer five different sizes of gold bars, ranging from 0.13 ounces (4 g) to 1.3 ounces (40 g). The 0.13-ounce size sells for around $225 and is the best-selling.
Impressive figures that speak for themselves
In less than a year since their installation, gold bullion vending machines have been a great success with consumers. From September 2022 to May 2023, total sales were estimated at $19 million! An impressive figure.
Furthermore, a GS Retail representative told the press that “people in their 20s and 30s seem to be the main buyers of physical gold”. The latter have a preference for the smaller format of gold bullion.
Currently, GS Retail has installed 29 vending machines. The company plans to increase this number to 50 by the end of the year to better cover demand.
This performance is viewed skeptically by Lee Eun-hee, Professor of Consumer Studies in the Department of Consumer Science at Inha University in Incheon. He considers that “buying gold bullion in a convenience store seems to be more of a fun activity than a serious investment”.
Several experts agree with him. On the one hand, their position is not lacking in veracity, given that South Korea is reputed to have a fairly high cost of living. Thus, the popularity of gold bullion is due to its ease of access.
Protection against inflation and economic pressures
Persistent inflation, currency depreciation and banking crises in the United States and Europe have undermined consumer confidence. They now see precious metals, and gold in particular, as a “safe haven” that will enable them to protect their wealth over the long term.
In this period of economic uncertainty, gold confirms its position as a “safe haven”. It now appears as a safe and “free” asset, in the face of political institutions constantly looking for a way to get their hands on traditional savings. It is not based on debt.
It’s also interesting to note that in South Korea, gold has a special significance. It is generally given to newlyweds and young children. This cultural practice also explains the success of the gold bullion vending machines installed by GS Retail.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
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