Gold bar vending machines, the new craze in South Korea

In South Korea's convenience stores, gold bars are becoming more and more popular as their value rises due to the severe global inflationary pressure.

In the nine months that ended in May, GS Retail, which operates convenience stores, confirmed on Friday that $19 million in gold bar sales were made there.

The gold bars, which are distributed through vending machines, were introduced at five of its stores last September. From 0.13 ounces to 1.3 ounces, there are five sizes available on the machines.

According to GS Retail, which runs more than 10,000 convenience stores throughout South Korea, prices change daily in accordance with the international valuation of gold.

Due to the demand for gold bars, the company has increased the number of locations carrying them to 29, with plans to reach 50 by the end of the year.

"The most popular gold bar is the smallest, the 0.13-ounce one, which is currently priced at around $225," a GS Retail representative told UPI News Korea.

"People in their 20s and 30s appear to be the main buyers, purchasing physical gold as an investment vehicle, especially in times such as these, when its value is continuing to rise," he said.

In March, as Silicon Valley Bank collapsed and people began to turn to gold as a safe haven, the price of gold began to rise.

"Niggling inflation and the SVB crisis seem to have caused more people to be interested in anti-inflationary assets such as gold," Inha University Professor Lee Eun-hee said in a phone interview.

"But a gold bar purchased at a convenience store seems more like something done for fun than as a means for serious investment. I believe the popularity of these gold bars is mainly due to their easy accessibility, at convenience stores no less," she said.

The gold bar vending machines in South Korea are in fact not the first of their kind, as the machines were first introduced in Dubai, UAE, as the Gold To Go vending machine, covered in 24-carat gold.

The machine dispenses one, five, 10 gramme, and one ounce bars of gold at Emirates Palace. It also dispenses six gold coins engraved with symbols from gold-producing nations such as Canada, Australia, and South Africa. The machine is protected by anti-money laundering software.