[Report] Empty Display Shelves, "We Can't Sell at a Loss"... The Unattainable You, 'Gold Bar'

No Gold Bars Left in Jongno's Precious Metals District in Seoul
Customers Leave Disappointed as Gold Shops Run Out

"If we sell without having gold, we will be at a loss. Once the supply stabilizes, we will sell again."

On the afternoon of the 17th, a salesperson at a gold and silver shop in the precious metals district of Jongno-gu, Seoul, said when asked about the gold bar prices, "It is difficult to place orders because the gold is sold out." The shop was flooded with inquiries about purchasing gold bars, and there were only seven gold bars left in the display case.

The display shelves at the store selling gold bars and silver bars are empty. Photo by Eunseo Lee

As the gold investment craze continues and gold bars remain scarce, even in Jongno’s precious metals district, a major domestic gold wholesale and retail trading hub, people are saying "gold has become as rare as hen’s teeth." Nam Mo, who sells gold bars, said, "The supply should match the amount sold to customers, but since there are no sellers, whether companies or individuals, gold bars cannot be put on the market." He added, "A large amount of gold has entered the KRX gold spot market with premiums attached, so physical gold is not circulating in the Jongno wholesale market. We cannot accept additional orders beyond the quantities already contracted."

Some merchants focus on brokering consignment products brought in by customers due to the unstable gold supply. Gold and silver shop salesperson Seo Minjae said, "The store has orders placed with the Korea Gold Exchange, but they are on waiting lists, so we are not accepting new product orders," adding, "Only consignment products can be purchased immediately. Although they are more expensive than the list price, many people buy them because it is so difficult to obtain gold bars." A 10-don (37.5g) consignment gold bar was priced at 6.5 million won as of noon.

The new products page on the gold and silver shop's website shows that the gold bars and silver bars are sold out. Photo by Eunseo Lee

Nam Hyunmo, who sells gold bars, explained, "The supply should match the amount sold to customers, but since there are no sellers, whether companies or individuals, gold bars cannot be put on the market." He continued, "A large amount of gold has entered the KRX gold spot market with premiums attached, so physical gold is not circulating in the Jongno wholesale market. We cannot accept additional orders beyond the quantities already contracted."

Due to the unstable gold supply, brokering consignment products brought in by customers has become common. The gold price, which changes several times a day, is essentially set by the sellers. Gold and silver shop salesperson Seo Minjae said, "The store has orders placed with the Korea Gold Exchange, but they are on waiting lists, so we are not accepting new product orders," adding, "Only consignment products can be purchased immediately. Although they are more expensive than the list price, many people buy them because it is so difficult to obtain gold bars." A 10-don consignment gold bar was priced at 6.5 million won as of noon.

People purchasing jewelry at a store in the jewelry district of Jongno, Seoul. Photo by Eunseo Lee

In the precious metals district, several people who came to buy gold bars were seen leaving empty-handed. Kim Mo said, "I was planning to start with a 10-don gold bar this week as a long-term investment, but I couldn’t buy one." Interest in gold investment spans all ages and genders. On YouTube and online platforms, there is explosive interest among young people in posts about gold investment methods. Park Mo, whom we met in the precious metals district, said, "A friend told me they collect small gold grains in a tiny bottle, so I came out to find out more. Even small gold grains cost about 590,000 won per don and seem hard to get, so I think it might be better to invest in ETFs instead."

Although gold bars have long been sold out due to explosive demand, traditional demand for gold rings is sluggish. A gold and silver shop employee said, "Since the price of one don of gold is 600,000 won, it is inevitably a burden. Half-don stone rings have long been the main choice, but even those are not selling well." Kim Youngik, a professor of economics at Sogang University, explained, "Gold prices are rising due to increased inflation expectations in the U.S. and uncertainties related to Donald Trump’s economic policies. With the dollar value and interest rates likely to fall, more people are investing in gold for the long term."