More people are buying gold bullion for investment, with sales soaring to 1,383 kg last year from 704 kg in 2013. As low interest rates on bank deposits have driven investors to gold, the Korea Gold Exchange expects sales to continue to increase.
Previously, those who bought gold were mostly wealthy investors focused on large purchases of 1 kg bars — worth W50 million (US$1=W1,084). Now more affordable, smaller pieces make up the bulk of transactions. The 10g bar (worth W500,000) and the 37.5g bar (worth W2 million) account for 70 percent of all sales.
But investors have to pay a trading fee, including a 10 percent VAT, so profiting is hard unless prices rise by 20 percent or so. Rapidly fluctuating prices also make gold a risky short-term investment, and experts advise holding gold for at least three years.
Source:english.chosun
Source:Bullion Bulletin