As financial market instability continued in the impeachment process, the number of individuals investing in gold, a representative safe asset, has increased significantly.
The number of individuals investing in gold has increased significantly as financial market instability continues in the impeachment process. As investment volatility has rapidly grown, with the impeachment of Yoon Suk Yeol's president being passed by the National Assembly after the December 3 emergency martial law incident, it is believed that money is flocking to representative safe assets.
According to an analysis of gold trading data on the Korea Exchange on the 16th, individual investors net purchased 80 billion won worth of gold through the exchange until the 13th of this month. From the 4th to the 13th, after the emergency martial law crisis broke out, the amount of gold purchased by individuals amounted to 62 billion won (501kg). It swept 12.1% of this year's total net purchases (512 billion won) in eight trading days.
During the same period, banks, securities firms and other institutions bought twice as much gold (34 billion won). Considering that individuals sold 4 billion won of gold during the same period last year, the atmosphere has changed significantly.
Currently, there are four ways to invest in gold:
1 - gold transaction through the Korea Exchange
2 - gold bar real transaction
3 - gold banking (gold investment bank account)
4 - gold spot exchange-traded fund (ETF) investment.
Among them, real gold transactions are gold transactions through the Korea Exchange and real investments in buying real gold bars.
When selling a gold bar, you do not pay any tax on the profits from the sale, but you have to pay VAT (10%) and sales commission (5%) when you purchase it. VAT and fees are not returned when the real gold is sold.
Gold transactions through the Korea Exchange are basic to conduct financial transactions on a 1g basis. Although there is no tax on profits from trading, there is a transaction fee of 0.2 to 0.3%. Investors can also withdraw gold bars in real life if they want. However, in this case, a 10% VAT and a fee of 20,000 won per gold bar (100g, 1kg unit) are charged, so it is good to pay attention.
Baek Seok-hyun, an economist at Shinhan Bank, said, "Gold prices have been rising sharply this year, but in the long run, it is still worth the investment," adding, "The strategy of dividing the period and buying in installments is effective."
By Kim Junghwan
Source: Maeil Business Newpaper
