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posted ago by Bibloop ago by Bibloop +30 / -0

https://www.koreaherald.com/article/10421915

A sharp surge in demand for gold has raised the “kimchi premium” on the price of the safe-haven asset, driving the gap between gold prices in South Korea and international markets to over 20 percent.

While the term “kimchi premium” has been mostly used recently to refer to price gaps in cryptocurrencies, now even gold has become subject to the phenomenon, as local investors flock to the asset to hedge against fears of trade wars and geopolitical uncertainty sparked by US President Donald Trump.

The spot price of a 1-kilogram gold bar stood at 168,200 won ($117) per gram at around 1 p.m. on Friday on the KRX Gold Market. The Korea Exchange operates the gold bourse, where the precious metal is traded like an equity.

At the same time, the LBMA Gold Fixing price, operated by the London Bullion Market Association, was 135,000 won per gram, showing a price gap of over 24 percent. The KRX uses the price offered by the LBMA, the leading authority on gold and silver markets, as its indicator of the international price of gold.