South Korea's Mint Company Announces Temporary Halt in Gold Bar Sales

South Korea's Mint Company Announces Temporary Halt in Gold Bar Sales

In a move that has sent shockwaves through the global gold market, South Korea's Mint Company announced on February 13th that it will temporarily suspend the sale of gold bars. The decision comes as investors rush to purchase gold and ship it to the United States ahead of potential tariffs.

According to Bloomberg News, the temporary halt in gold bar sales is a sign of supply chain tensions in the physical gold market. As gold prices continue to rise, investors are scrambling to secure their positions before the looming deadline.

The Mint Company, which is a state-owned enterprise under South Korea's Ministry of Planning and Finance, is responsible for minting and printing currency as well as producing gold bars and other precious metal products. Its business also includes managing the country's gold reserves.

Data from Bloomberg shows that as large quantities of gold are being shipped out of London, the world's largest gold hub, the city's gold storage has seen a significant decrease in January, dropping by 4.9 million ounces (0.0283 kilograms per ounce) to its lowest level since 2016.

The move comes as tensions surrounding U.S. tariffs have increased, causing spot gold prices to rise above those in London. On February 13th, the spot price of gold hit a new high, reaching $2,922.81 per ounce (0.0283 kilograms) during the Asian trading session.

The price surge has had far-reaching implications for consumers and investors alike. In South Korea, where gold is seen as a symbol of wealth and prosperity, demand for gold jewelry and other products has skyrocketed. According to a report by the Korean Times, the country's three largest banks - the Bank of Korea, Shinhan Bank, and KEB Hana Bank - sold a total of 1.377 trillion won (approximately $6.9 billion) in gold bars in January, a year-on-year increase of 167%.

The South Korean Stock Exchange also reported that daily trading volume for gold reached a record high of 10.88 trillion won ($5.5 billion) on February 5th, surpassing the previous record of 1 trillion won (approximately $500 million). The surge in demand has led to a new trend in consumer spending and investment.

In a sign that the trend is here to stay, consumers are clamoring for gold jewelry, golden spoons, and other luxury items. According to a report by Korea Business Daily, the price of gold jewelry has skyrocketed, with prices reaching as high as 5 million won (approximately $2,500) per piece.

The move comes as global tensions continue to rise, with investors seeking safe-haven assets such as gold. As the world waits with bated breath for what's next in the global economy, one thing is clear: gold is here to stay.