Recently, the sales of gold bars and gold banking by commercial banks have reached an all-time high. This surge in gold demand is attributed to the explosive effects of tariff bombs initiated by Trump, with signs of 'FOMO' (fear of missing out) also emerging in some quarters.
According to the financial sector on the 16th, the total sales of gold bars by the five major banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup from February 1 to 13, amounted to 40.6345 billion won. This is three times the sales of the same month last year (13.54867 billion won) and 20 times the sales of the same date from last year (2.01823 billion won), marking an unprecedented scale.
The daily sales of gold bars by the five banks stood at about 2 billion won on the 3rd of this month, but it approached 4 billion won on the 5th and exceeded 5 billion won on the 7th, showing rapid growth. This coincided with a sharp increase in international gold prices as U.S. President Donald Trump hinted at tariff increases on Canada, Mexico, and China. Notably, sales surged further after it was revealed on the 12th that the Korea Mint Corporation, a major supplier of gold bars, decided to temporarily suspend gold bar supplies to banks.
Sales at the five banks increased from 4.98007 billion won on the 11th to 5.74101 billion won on the 12th, and jumped to 10.8217 billion won on the 13th, surpassing 10 billion won. Although KB Kookmin Bank completely halted gold bar sales on the 12th, the sales at Shinhan Bank and NH Nonghyup Bank increased by about twice compared to the 11th, attracting large sums of money from other banks. The price of a 100-gram gold bar is approximately 15 million won, and the price of a 1-kilogram gold bar is around 160 million won, meaning 250 kilograms of physical gold were sold from the banks in just one day on the 13th.
As gold bars became scarce, interest turned to alternative products. As of the 13th, the total balance of gold banking at KB Kookmin, Shinhan, and Woori Banks reached 896.9 billion won, marking an all-time high. Hana and NH Nonghyup Banks do not handle gold banking. Gold banking allows people to buy and sell gold through their bank accounts, and this marks the first time the balances at the three banks have approached 900 billion won. The balance of gold banking at the three banks increased by 6.8% from 782.2 billion won at the end of last year to 835.3 billion won at the end of last month, and increased again by 7.4% until the 13th of this month.
Many have also turned their attention to investing in silver instead of gold. From February 1 to 13, the total sales of silver bars at KB Kookmin, Shinhan, Woori, and NH Nonghyup Banks amounted to 528.89 million won, exceeding 15 times that of the same month last year (34.22 million won). Hana Bank does not sell silver bars. The sales of silver bars at the four banks are much lower than those of gold bars, but compared to last year's sales of zero won, it is a significant amount.
Banks are in a state of emergency to secure demand for physical gold and silver. Even after the Mint Corporation announced a halt to gold bar supplies, they have sourced gold bars from other suppliers like the Korea Gold Exchange and Samsung Gold Exchange, but the mood for smooth supply and demand is not favorable. The same goes for silver bars. KB Kookmin Bank has completely halted gold bar sales since the 12th and will also stop selling silver bars starting on the 17th. They plan to resume sales of 1-kilogram gold bars on the 17th, but shipping will take about five weeks.
Shinhan Bank sells three types of gold bars—10g, 100g, and 1kg—produced in-house from supplies received from LS Group's subsidiary LS MnM. However, the sales of the 1g, 3.75g, and 37.5g gold bars, which were previously obtained from the Korea Gold Exchange, have been suspended since the 14th. They also stopped selling silver bars from that day. Hana Bank only sells 1-kilogram gold bars from the Korea Gold Exchange. Woori Bank has suspended the sale of all types of gold and silver bars obtained from the Mint and Korea Gold Exchange since the 14th. NH Nonghyup Bank sells gold bars from the Korea Gold Exchange (3.75g, 10g, 100g, 1kg) and Samsung Gold Exchange (37.5g, 187.5g, 375g). They have stopped selling silver bars.
An official from a bank noted, "The supply conditions are expected to improve by the end of next month," but added, "It is difficult to predict gold prices, so securing supply and demand is also uncertain."