South Korea’s Mint is Grappling with a Gold Bar Shortage as Supply Constraints Bite

South Korea’s State-R Mint is Grappling with a Gold Bar Shortage Amid Robust Demand for the Precious Metal.

The Korea Minting and Security Printing Corporation (KOMSCO), which is responsible for the production and distribution of various security products, Suspended Sales of Gold Bars Last month.

Komsco attributed the suspension to issue with procuring supply of raw materials, according to a google translation of the notice on its website. The Mint Typical Supplies Bullion Bars To korea’s commercial banks, stores and online shopping malls.

Vending machines in the capital of seoul reported out of fingernail-sized gold bars, according to local media outletsAs consumers scrambled to purchase the safe-han asset.

“The Sudden Spike in Gold Demand in South Korea Has LED to Korean Banks to Temporarily Suspend Gold Bar Sales at the Request of KOMSCO SUSCO SUSCO SUSCO BAR SALESCO BARSCO BARSCO Robin Tsui, Apac Gold Strategist at State Street Global Advisors.

Demand is larger being drive Uncertainty Sparked by Us President Donald Trump’s Tarifs.

South Korean President Yoon Suk Yeol is currently awaiting an impeachment verdict after 3.

Lawmakers also Voted to impeach Acting President Han Duck-SOO LATE LAST Year, Plunging The Country Into Renewed Political Turbulence. South Korea’s Second Acting President after HAN, Choi Sang-Mok, Has Faced Some Opposition from The Public Over What they see as actions to Hinder Efforts to Apprehend Yoon,

South Korea’s domestic turmoil has corresponded with trump’s return to the white house and, along with it, the prospect of an escalating trap war.

Gold’s Proven Hedge Against Local Currency Depraction has LED to Higher Demand AMID A “Rapid AMID A” Rapid Depreciation “of the Korean Won, Especially in the Last Quarter of 2024, Said Ray Jia, ASEARCHI HeAD AT the WORLLE Gold Council.

Bar and coin investment in south korea surged 29% in the fourth questioner of last year to 5.9 tons, according to data provided from world gold council, which coincided with an 11% depreciation of the korean won road Us dollar during the time, lseg data showed.

Meantime, Market Watchers Told CNBC that South Korea’s Equity Market Hadn’T Been too Exciting for Local Investors.

“If you’re Concerned about your currency development, you switch to gold. If you’re not confident about your stock market, you would switch to gold,” Said bernard dahdah, precious metals analyst at natixis.

While south korea’s benchmark kospi has registered a 2% climb since dec. 3, The Index Saw an exodus of 224.88 billion Won ($ 155.9 Million) Among Individual Investors Between Dey. 3 to March 5, According to Data from the stock exchangeThis contrasts to a 10% gain in spot gold prices over the same period.

“Gold’s Superir Returns Over Domestic Equites has Driven more Demand for Gold,” State Street Global Advisors’ Tsui said.

While Acknowledging The Higher Demand for Gold in Recent Months, Some Say that it is also very much a broader supply ise.

Strong Us Demand for Gold in Recent Months Has Been Redirecting Bullion out of Several Countries As traders try to stockpile it in preparation for trump’s tarifs on canada and mexico.

“There are regional shortages of gold, LED by London But Now also South Korea, Because metal is going to the us and thus there’s less supply in that money

A complicating factor is that traders hoping to move gold into the US comex depositories Largely Make Deliveries Via Kilogram BarsWhich are usually available only only in select regions in Asia and Middle East.

“Korean refineries and wholesales probally got a phone call and said: ‘We will buy your entrance stock off you at a good premium, stick it on a plan and send it to new york,” Said worry Market Strategist for Asia and Europe, John Reade.

Additional, a higher innocent to produge the larger kilobars typically accepted by comex warehouses may be prompting refiners to switch to Producing there bigger bars for shipment inserted, tsui Said.