Gold Rises Amid Market Volatility: Investors Seek Safe Haven

A growing number of investors are turning to gold as a safe haven from market volatility. Gold prices have risen nearly 10% in the past month, attracting attention from investors.

The Korea Exchange operates a spot gold market, allowing investors to buy and sell gold on a trading system, similar to stocks. This method is advantageous because capital gains tax and value-added tax are exempted when purchasing through an exchange transaction.

Another option for investing in gold is through gold banking. This involves opening a gold investment account at a bank, where the balance changes depending on the gold price and exchange rate. Gold banking profits increase when the gold market rises and the won weakens.

Investors can also participate in the global raw materials market by buying stocks of gold-related exchange-traded funds (ETFs) or mining companies. For example, ACE KRX gold spot has a total net assets (AUM) of around 4 trillion won, while TIGER KRX gold spot has an AUM close to 1.2 trillion won.