ITCEN Group Korea Gold Exchange, January Sales Up 330% Year-on-Year

Record High Performance Since Establishment
Gold Sales and Trading Volume Surge Due to Safe Asset Preference

Amid a sharp drop in international gold prices, gold-related products are displayed at the Korea Gold Exchange in Jongno-gu, Seoul on the 12th. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Lim Jeong-su] Korea Gold Exchange Three M, the largest precious metals specialist company in Korea under the I-SEN Group, recorded its highest sales ever in January this year. As preferences for safe assets increased due to COVID-19, the volume of gold transactions and sales surged explosively.

Korea Gold Exchange Three M announced on the 25th that its sales for January this year reached 233 billion KRW, a 330% increase compared to the same month last year. This is the highest monthly sales since the company's founding last year. According to the company, as of February, the transaction volume is 5 tons of gold (gold bars) and 12.6 tons of silver (silver bars), with sales expected to reach approximately 400 billion KRW by the end of February.

The sales volume of financial institutions that receive gold bars and silver bars from Korea Gold Exchange for consignment sales increased by 225% compared to the same period last year, reaching 7.6 billion KRW, more than doubling. This is attributed to the average gold price in January this year being 66,125 KRW per gram, up 7,560 KRW/g compared to the same month last year, indicating a strengthened favorable investment sentiment toward safe assets.

Overseas experts predict that inflation concerns caused by large-scale stimulus measures by central banks worldwide will act as a source of instability in financial markets, increasing demand for safe assets. Accordingly, the price of gold, one of the safe assets, is exceeding 2,000 USD per ounce. Additionally, due to eco-friendly policies responding to climate change in various countries, demand for major industrial metals such as silver and platinum is continuously increasing, and their prices are also expected to rise.

Song Jong-gil, Executive Director of Korea Gold Exchange, said, "‘SenGold,’ which is the first in the precious metals industry to pass the Open Banking review by the Korea Financial Telecommunications & Clearings Institute, has the advantage of allowing investments through points from cards such as Hana Card, and has secured 100,000 members within one year of service launch." He added, "Even after COVID-19 vaccinations, non-face-to-face transactions through ‘SenGold’ and ‘Geumbanggeumbang’ will continue to grow."

SenGold is a precious metals trading application (App) designed to trade gold (e-gold) on mobile devices. Geumbanggeumbang is an app that allows users to appraise and buy or sell gold that is idle at home through non-face-to-face transactions.