Surge in Gold-Related Investments
Individual investors in South Korea are significantly expanding their investments in gold-related products. The recent record-high gold prices have strengthened investment sentiment towards gold, with a notable net purchase of 593 billion KRW in September on the KRX gold market, highlighting a robust investment enthusiasm. In the exchange-traded funds (ETF) market, gold-related products are also gaining popularity, with ACE KRX Gold Spot and TIGER KRX Gold Spot ranking highly among individual investors.
Gold prices have risen over 50% this year alone, and experts predict that this upward trend is likely to continue. Wall Street forecasts that the price of gold could reach $5,000 per troy ounce by the end of next year and potentially soar to $10,000 in the long term. These predictions are pivotal for investors considering both short- and long-term investments in gold.
Among various gold-related financial products, the characteristics and tax implications of each play a crucial role in determining actual returns for investors. Products such as gold bars, gold funds, gold banking, and gold ETFs are attracting individual investors, with each differing in potential profitability. Gold bars incur VAT and production costs, gold funds are subject to income tax, while gold banking is highly influenced by exchange rate fluctuations, categorizing them as higher-risk products. Conversely, gold ETFs are considered favorable for small investors due to tax benefits and low fees.
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