Amid Israel-Gaza war, soaring gold price makes South Korea’s traditional gold ring gift for babies unfeasible

However, the soaring price of gold is now prompting South Koreans to look for economic alternatives.

A baby ring of 24-karat, the purest form of gold used in jewellery, now costs more than 400,000 won (US$300), more or less, given that an average baby ring weighs 3.75 grams.

This is a 15 per cent hike in just the past couple of months. The gold ring price, of course, has followed the upward movement of the price of gold internationally.

Gold prices send Thai, Indian buyers into frenzy as war stokes inflation

South Korea’s gold price also rose steeply. According to data from the KRX gold market, the state-run gold trading platform, one gram of gold reached an all-time high of 86,820 won (US$67) on October 30. It is the highest price ever traded at the KRX gold market, since its founding in 2014. The price went down to 83,010 won, as of this week.

Similarly, the price of 3.75 grams of 24-karat gold – a widely used unit of weight in trading precious metals in Asia, as well as the basic unit of the baby gold ring – soared to a record-high price of 374,000 won on October 28 at the Korea Gold Exchange, the country’s largest private gold supplier, more than twice the price in 2013.

Market watchers say the Israel-Gaza war is the main reason for the surging price. Buyers have flocked to gold as a safe haven asset as concerns grow over the “Fifth Middle East War”, amid an intensifying conflict in the region.

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Chinese consumers sell off old jewellery amid record high gold prices

Chinese consumers sell off old jewellery amid record high gold prices

“The triple layers of threat of a high foreign exchange rate, high interest rates and high inflation, on top of an economic slowdown, has led to an increase in sales of gold for the sake of profit-taking,” Song Jong-gil, CEO of the Korea Gold Exchange, said.