Gold Price Continuing to Rise

Korea Exchange announced on April 19 that the spot trading volume of the KRX gold market totaled 2,468 kilograms (154.1 billion won) last month whereas the volume stood at 640 kilograms (35.9 billion won) in December last year. The average daily trading value for this month is 7.2 billion won.

The market’s advantages include a low trading fee. Funds and ETFs investing in gold come with regular management fees and a dividend income tax of 15.4 percent whereas trading in the KRX gold market comes with nothing but a brokerage fee of 0.3 percent.

In addition, the trading itself is very easy. It can be carried out online by any person having a securities account and it is carried out quickly by liquidity providers as in the case of ETFs. The ratio of trading by individual investors in the KRX gold market rose from about 60 percent to over 70 percent from February to March this year.

The price of gold in the market is continuing to rise along with the demand. The spot price rose from 56,540 won to 66,500 won from late last year to April 17.

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