South Korea has gold vending machines, and they're selling out
Women and GenZ are Leading the Charge
South Korea has gold vending machines, and they're selling out
South Korea is now offering gold bars through vending machines at convenience stores, with demand being driven by investors seeking safe haven assets and the trend of micro-investing.
The vending machines are located at GS Retail stores and dispense gold bars up to 37.5 grams in size. The prices fluctuate daily but start around 88,000 won ($64) for a 0.5 gram bar.
A GS Retail spokesperson stated, "Currently we are seeing about 30 million won of sales per month. The gold vending machine draws customers' attention due to increasing demand for safe haven assets and the spreading trend of micro-investing."
As these trends gain popularity, so does demand for gold. A Charles Schwab report cited by Bloomberg indicated 65% of Gen Z and millennials may invest in fractional shares of a company, demonstrating interest in micro-investing.
The rise of gold vending machines in South Korea reflects growing demand for physical gold as a safe haven asset, particularly among younger investors interested in micro-investing and diversifying their portfolios amid economic uncertainty
South Korea's Gold Bar Vending Machines Bring Investors to Convenience Stores
In South Korea, investors are flocking to convenience stores to buy gold bars from vending machines, seeking a haven from market turmoil and the falling won.
The machines, installed by a joint venture between retail giant BGF Retail Co. and metals company Cha Dang Corp., have processed over 500 million won ($380,000) in sales since their launch in January.
They offer a range of gold bars from 0.3 grams to 100 grams, with prices updated every five minutes based on international rates.
"Investors are increasingly buying gold as a safe asset due to economic uncertainties stemming from high inflation and the weak Korean won," said Cha Dang Chief Executive Officer Lee Dong-bak. "Gold is a hedge against inflation and economic risks."
The won has plunged about 7% against the dollar this year, making gold more attractive as it's priced in the US currency. Bullion is also seen as a store of value during times of turmoil, with investors piling in as rising interest rates roil equity and bond markets.
South Korea has about 60,000 convenience stores, more than anywhere else in the world, making the gold vending machines easily accessible. The companies plan to install more than 1,000 machines by the end of this year.
