As geopolitical conflict in the Middle East escalates and economic uncertainty deepens both globally and domestically, investors are turning to traditional safe-haven assets. Prices of gold and silver have climbed sharply, drawing heavy investment into bank-linked precious metal products.
On June 17, international gold prices reached $3,422 per troy ounce on the New York Mercantile Exchange, just shy of the April 22 high of $3,509.90. The previous day, prices touched $3,473.45. Silver followed suit, trading in the $36.50 range — close to its 13-year high of $37.03 recorded on June 9, the highest since February 2012.
So far in 2025, gold and silver prices have surged 30.1% and 23.8%, respectively. This robust rally has triggered a massive flow of investment into physical bullion and bank-facilitated products.
Gold Bar Sales Double from Last Year
The five major South Korean banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—sold gold bars worth 225.6 billion won from January through May this year. That figure already doubles the full-year sales in 2024, which stood at 120.3 billion won, reflecting heightened investor demand for tangible assets.
Gold Banking Surpasses 1 Trillion Won
Investor activity in ‘gold banking’ — a service allowing fractional gold investment through regular bank accounts — has also surged. As of the end of May, the combined gold banking balances of KB Kookmin, Shinhan, and Hana Banks had soared to 1.016 trillion won. This marks a historic milestone, as balances had hovered between 500 to 600 billion won throughout 2023 and the first half of 2024. The trillion-won threshold was first crossed in March this year.
Silver Investment Sees Record Inflows
Silver, often seen as gold’s more affordable sibling, is also drawing attention. The four major banks excluding Hana sold silver bars worth 1.836 billion won from January to May — nearly triple the 630 million won recorded in all of last year. This spike came despite a temporary halt in silver bar sales during March. After resuming supply in April, investor demand surged further.
One banking official noted, “Silver is perceived to carry less price pressure compared to gold and offers higher growth potential. This has led to a strong uptick in purchases after supply resumed.”
Silver banking, however, remains limited among commercial institutions. Only Shinhan Bank currently offers silver accounts. Even so, balances in these accounts jumped roughly 40% from 44.5 billion won at the end of 2024 to 62.7 billion won as of June 12.
Experts Recommend Long-Term, Balanced Investment
Market analysts largely maintain a bullish long-term view on precious metals. However, instead of chasing quick profits, they suggest a cautious strategy involving portfolio diversification.
Park Tae-hyung, branch manager at Woori Bank’s TCE Signature Center, commented, “JP Morgan has projected that international gold prices could exceed $6,000 per ounce by 2029. Even within this year, we may see a new all-time high in the second half.”
He added, “From a stability perspective, it’s wise to maintain gold and silver investments at 5% to 10% of one’s portfolio rather than overexposing during price peaks.”
As global conflict and economic unpredictability continue to dominate headlines, both gold and silver are reaffirming their roles as defensive assets — with growing investor preference reflected in record sales and fund inflows.
