Prices Soared 15 Times... Profitable Gold, Silver, and Copper Prices Also 'Stirring' [Aldonssuljab]

Gold Prices Hit New All-Time Highs Day After Day
As Demand for Gold Surges, the 'Balloon Effect' Spreads to Undervalued Silver and Copper

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These days, the 'price of gold' is soaring at an alarming pace.

Last year, there were talks that gold prices had risen too much and hit a peak,

but since then, they have continued to rise, consistently breaking all-time records.

Eventually, domestic gold prices have exceeded international trading prices by 20%,

resulting in the so-called 'Korean Premium' spreading even to the gold market.

Let's explore the reasons why gold prices are skyrocketing like this,

and what the future outlook for gold prices looks like.

Gold Prices Break Through the Ceiling... Why?

Gold prices are hitting new all-time highs day after day.

According to Reuters, on the 21st (local time), the spot price of gold at the COMEX in New York reached an intraday high of $2,954.69 per troy ounce, breaking the record.

Gold futures prices also rose 0.7% from the previous day to $2,956.10 per ounce.

International gold prices have jumped about 12% just this year,

showing higher returns compared to other assets.

As international gold prices rise, gold bar sales in Korea have also surged significantly.

From the 1st to the 13th of this month, the total gold bar sales at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) amounted to .

This is about 20 times the sales amount during the same period last year (?2.01823 billion).

So why are gold prices continuing to rise like this?

A major reason is President Trump's imposition of tariffs.

On the 18th, he announced tariffs on automobiles, semiconductors, and pharmaceuticals,

raising concerns that it could escalate into a trade war,

which led to an increase in demand for gold as a safe-haven asset.

If high tariffs are imposed, inflation rates will also rise,

highlighting gold's appeal as an 'inflation hedge',

which in turn increased demand for gold.

Silver and Copper Prices Rise Alongside Gold Shortage

On the 20th, at the Korea Gold Exchange in Jongno-gu, Seoul, where gold prices have recently reached record highs, an official is showcasing silver bars, which are also on the rise. Photo by Jo Yongjun jun21@

As gold prices soar, silver and copper prices are also rising.

Silver futures prices surged 14.5%, from $29.24 per ounce at the end of last year to $33.49 on the 20th of this month.

During the same period, copper futures prices rose 14.5% as well, from $4.0265 to $4.6120.

As investors flock to the representative safe-haven asset gold,

there is analysis that buying interest has also concentrated on silver and copper, which were relatively undervalued compared to gold.

Recently, four banks?KB Kookmin, Shinhan, Woori, and NH Nonghyup?received official letters from the Korea Gold Exchange on the 14th stating that silver bar supply is difficult.

As a result, Shinhan Bank, Woori Bank, and NH Nonghyup Bank have suspended silver bar sales.

Investors who could not obtain gold bars turned their attention to silver bars,

creating the so-called 'balloon effect'.

In fact, the total silver bar sales from February 1 to 13 at KB Kookmin, Shinhan, Woori, and Nonghyup Banks reached ,

already exceeding 15 times the amount during the same period last month (?34.22 million).

Especially, KB Kookmin Bank's silver bar sales usually amount to 7-8 kg per month,

but on the 12th of this month, 162 kg were sold in just one day, more than 20 times the usual amount.

There is also analysis that due to tariffs imposed by the Trump administration, copper price volatility has increased and demand for copper has grown due to large-scale expansion of artificial intelligence (AI) data centers.

Jang Jae-hyuk, a researcher at Meritz Securities, said, "As the Trump administration is likely to impose tariffs of about 10% on copper imports, copper prices in the U.S. are expected to rise in the short term," adding, "Global copper prices are also expected to show strength."

"Gold Prices Will Rise Further"… Goldman Sachs Raises Forecast

Meanwhile, major investment banks and experts forecast that gold prices will continue to rise.

Goldman Sachs, a major U.S. investment bank, raised its year-end gold price forecast

to $3,100 per ounce.

This is an increase from last month's forecast of $3,000.

In a report, Goldman Sachs stated, "Central banks' gold purchases could reach an average of 50 tons per month," and "If uncertainties in trade policies, including tariffs, continue under the Trump administration, speculative positions could push gold prices up to $3,300 per ounce by year-end."

With the Trump administration taking office,

domestic and international uncertainties have increased, leading to higher demand for safe-haven assets.

Gold, considered a representative safe-haven asset, is gaining attention.

However, it is advisable to avoid blindly chasing prices late due to the so-called 'FOMO (Fear Of Missing Out)' syndrome, fearing being left behind in investments.

Experts also recommend approaching gold investment not as a short-term speculative gain,

but as part of asset allocation for safe-haven assets in a portfolio,

so please consider carefully.

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